[Federal Register: September 19, 2007 (Volume 72, Number 181)]
[Proposed Rules]
[Page 53498-53501]
[DOCID:fr19se07-25]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2007-29227; Directorate Identifier 2007-NM-100-AD]
RIN 2120-AA64

Airworthiness Directives; Boeing Model 747-100, 747-100B, 747-
100B SUD, 747-200B, 747-200C, 747-300, 747-400, 747-400D, and 747SR
Series Airplanes

AGENCY: Federal Aviation Administration (FAA), Department of
Transportation (DOT).

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: The FAA proposes to adopt a new airworthiness directive (AD)
for certain Boeing Model 747-100, 747-100B, 747-100B SUD, 747-200B,
747-200C, 747-300, 747-400, 747-400D, and 747SR series airplanes. For
certain airplanes, this proposed AD would require a material type
inspection to determine if the lower forward corner reveal of the
number 3 main entry doors (MEDs) is a casting. If the reveals are
castings, this proposed AD would require repetitive inspection of the
reveals for cracking, and corrective action if necessary. If the
reveals are not castings, this proposed AD would require a detailed
inspection of the reveals for a sharp edge and repetitive inspection of
the reveals for cracking, and corrective action if necessary. For
certain other airplanes, this AD would require only a detailed
inspection of the reveals for a sharp edge and repetitive inspection of
the reveals for cracking, and corrective action if necessary. For
certain other airplanes, this AD would require repetitive inspection of
the reveals for cracking only, and corrective action if necessary. This
proposed AD results from reports of cracking and/or a sharp edge in the
lower forward corner reveal of the number 3 MEDs. We are proposing this
AD to detect and correct fatigue cracking of the lower forward corner
reveal of the number 3 MEDs, which could lead to the door escape slide
departing from the airplane when the door is opened and the slide is
deployed, and consequent injuries to passengers and crew using the door
escape slide during an emergency evacuation.

DATES: We must receive comments on this proposed AD by November 5,
2007.

ADDRESSES: Use one of the following addresses to submit comments on
this proposed AD.
     DOT Docket Web site: Go to http://dms.dot.gov and follow

the instructions for sending your comments electronically.
     Government-wide rulemaking Web site: Go to http://www.regulations.gov
 and follow the instructions for sending your

comments electronically.
     Mail: U.S. Department of Transportation, Docket
Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue, SE., Washington, DC 20590.
     Fax:<PHONE_NUMBER>.
     Hand Delivery: Room W12-140 on the ground floor of the
West Building, 1200 New Jersey Avenue, SE., Washington, DC, between 9
a.m. and 5 p.m., Monday through Friday, except Federal holidays.
    Contact Boeing Commercial Airplanes, P.O. Box 3707, Seattle,
Washington 98124-2207, for the service information identified in this
proposed AD.

FOR FURTHER INFORMATION CONTACT: Ivan Li, Aerospace Engineer, Airframe
Branch, ANM-120S, FAA, Seattle Aircraft Certification Office, 1601 Lind
Avenue, SW., Renton, Washington 98057-3356; telephone<PHONE_NUMBER>;
fax<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Comments Invited

    We invite you to submit any relevant written data, views, or
arguments regarding this proposed AD. Send your comments to an address
listed in the ADDRESSES section. Include the docket number ``FAA-2007-
29227; Directorate Identifier 2007-NM-100-AD'' at the beginning of your
comments. We specifically invite comments on the overall regulatory,
economic, environmental, and energy aspects of the proposed AD. We will
consider all comments received by the closing date and may amend the
proposed AD in light of those comments.
    We will post all comments we receive, without change, to http://dms.dot.gov
, including any personal information you provide. We will

also post a report summarizing each substantive verbal contact with FAA
personnel concerning this proposed AD. Using the search function of
that Web site, anyone can find and read the comments in any of our
dockets, including the name of the individual who sent the comment (or
signed the comment on behalf of an association, business, labor union,
etc.). You may review DOT's complete Privacy Act Statement in the
Federal Register published on April 11, 2000 (65 FR 19477-78), or you
may visit http://dms.dot.gov.

Examining the Docket

    You may examine the AD docket on the Internet at http://dms.dot.gov
, or in person at the Docket Operations office between 9

a.m. and 5 p.m., Monday through Friday, except Federal holidays. The
Docket Operations office (telephone<PHONE_NUMBER>) is located on the
ground floor of the West Building at the DOT street address stated in
the ADDRESSES section. Comments will be available in the AD docket
shortly after the Docket Management System receives them.

Discussion

    On June 30, 2004, we issued an NPRM, Docket No. FAA-2004-18583, to
address the identified unsafe condition. That NPRM was prompted by
reports from eight operators indicating that cracking of the lower
forward corner reveal of the number 3 main entry doors (MEDs) was found
on several Model 747 airplanes. Of the twelve reveals that were
cracked, eleven were made of cast 356 aluminum and one was made of
machined 6061 aluminum. The cause of the cracking of the reveals made
of cast 356 aluminum is fatigue. The cause of the cracking of the
reveal made of machined 6061 aluminum was a manufacturing defect, which
led to fatigue cracking.
    Subsequent to issuing the NPRM, we have been working with the
manufacturer to ensure that the unsafe condition is adequately
addressed and appropriate service instructions are available. We have
also received new data showing other issues related to the unsafe
condition. In addition to the comments received for that NPRM, the data
include reports that forward corner reveals installed on certain
airplanes have a ``sharp edge'' detail at the forward edge, which could
lead to fatigue cracking, and that additional airplanes are affected by
the identified unsafe condition. We have determined from these data
that the corrective actions proposed by that NPRM are inadequate for
addressing the identified unsafe condition; therefore, we have
withdrawn that NPRM and are issuing this new proposed AD.

Explanation of Related AD

    We have previously issued AD 2007-12-11, amendment 39-15089 (72 FR
31984, June 11, 2007), which applies to certain Boeing Model 747 series
airplanes. That AD requires repetitive inspections to detect cracks
and/or corrosion of the girt bar support fitting at certain main entry
doors (MED), and repair or replacement of the support fitting. That AD
also provides for various terminating actions for the repetitive
inspections. That AD also requires an inspection, for certain
airplanes, for correct installation of square and conical washers in
the girt bar support fitting; an inspection, for certain other
airplanes, to determine if the washers are installed; and related
investigative and corrective action if necessary.
    Actions required by that AD are done in accordance with Boeing
Service Bulletin 747-53A2378, Revision 1, dated March 10, 1994; or
Boeing Service Bulletin 747-53A2378, Revision 3, dated August 11, 2005.
Accomplishment of the applicable repair in this proposed AD would
constitute compliance with the requirements of paragraph (q)(2)(ii) of
AD 2007-12-11 for the repair of the lower forward corner casting
(reveal) of the number 3 MEDs only.

Relevant Service Information

    We have reviewed Boeing Special Attention Service Bulletin 747-53-
2460, Revision 1, dated February 13, 2007. The service bulletin
describes procedures for inspections of the lower forward corner reveal
of the number 3 MEDs, depending on the configuration of the airplane.
    For airplanes identified as Group 3 airplanes: The service bulletin
describes procedures for a repetitive detailed inspection for cracking
of the lower forward corner reveals for cracking, and corrective action
if necessary. Corrective action includes replacing the reveal with a
new or reworked two-piece reveal, which would end the repetitive
inspections; or replacing the reveal with a new or reworked one-piece
machined aluminum reveal without a sharp edge, doing repetitive
inspections at a new compliance time after the replacement, and doing
corrective action if necessary.
    For airplanes identified as Group 2 airplanes and Group 1,
Configuration 2 airplanes: The service bulletin describes procedures
for a repetitive detailed inspection of the lower forward corner
reveals for cracking, a one-time detailed inspection of the lower
forward corner reveals for a sharp edge, and corrective action if
necessary. The corrective actions include the following:
     If no cracking and no sharp edge are found: Replace the
reveal with a new or reworked two-piece reveal, which would end the
repetitive inspections; or do repetitive detailed inspections at a new
compliance time, and corrective action if necessary (as specified above
in procedures for Group 3 airplanes).
     If no cracking is found but a sharp edge is found: Replace
the reveal with a new or reworked two-piece reveal, which would end the
repetitive inspections; or replace the reveal with a new or reworked
one-piece machined aluminum reveal without a sharp edge, do the
repetitive detailed inspections at a new compliance time after doing
the replacement, and do corrective action if necessary (as specified
above in procedures for Group 3 airplanes).
     If cracking is found: Replace the reveal with a new or
reworked two-piece reveal, which would end the repetitive inspection;
or replace the reveal with a new or reworked one-piece machined
aluminum reveal without a sharp edge, do the repetitive detailed
inspections at a new compliance time after doing the replacement, and
do corrective action if necessary (as specified above in procedures for
Group 3 airplanes).
    For airplanes identified as Group 1, Configuration 1 airplanes: The
service bulletin describes procedures for a one-time material type
inspection to determine if the lower forward corner reveals are
castings. If the forward corner reveal is not a casting: Do a one-time
detailed inspection of the reveal for a sharp edge, repetitive
inspection of the reveal for cracking, and corrective action if
necessary (as specified above in procedures for Group 2 and Group 1,
Configuration 2 airplanes). If the reveal is a casting: Do repetitive
detailed inspections of the reveal for cracking, and corrective action
if necessary. Corrective actions include the following: Weld repair the
reveal and repeat the detailed inspection; replace the reveal with a
new or reworked two-piece reveal, which ends the repetitive
inspections; or replace the reveal with a new or reworked one-piece
machined aluminum reveal without a sharp edge, do the repetitive
inspections again at a new compliance time after the replacement, and
do corrective action if necessary (as specified above in procedures for
Group 2 and Group 1, Configuration 2 airplanes).
    Accomplishing the actions specified in the service information is
intended to adequately address the unsafe condition.

FAA's Determination and Requirements of the Proposed AD

    We have evaluated all pertinent information and identified an
unsafe condition that is likely to exist or develop on other airplanes
of this same type design. For this reason, we are proposing this AD,
which would require accomplishing the actions specified in the service
information described previously, except as discussed under
``Difference Between the Proposed AD and the Service Bulletin.''

Difference Between the Proposed AD and the Service Bulletin

    Although Step 5 of Figure 8 of the service bulletin specifies that
operators may accomplish the actions on forward corner reveals made of
cast 356 aluminum in accordance with ``an operator's equivalent
procedure,'' this proposed AD would require operators to accomplish
Step 5 of Figure 8 only in accordance with the procedures specified in
Boeing Standard Overhaul Practices Manual (SOPM) 20-20-02. An
``operator's equivalent procedure'' may be used only if approved as an
alternative method of compliance in accordance with paragraph (p) of
this AD.
    The difference described above has been coordinated with the
manufacturer.

Costs of Compliance

    There are about 715 airplanes of the affected design in the
worldwide fleet. The following table provides the estimated costs for
U.S. operators to comply with this proposed AD.

                                                 Estimated Costs
----------------------------------------------------------------------------------------------------------------
                                                                                Number of U.S.-
            Action               Work hours     Average labor      Cost per        registered       Fleet cost
                                                rate per hour      airplane         airplanes
----------------------------------------------------------------------------------------------------------------
Inspections..................               4             $80  $320, per                    119  $38,080, per
                                                                inspection                        inspection
                                                                cycle.                            cycle.
----------------------------------------------------------------------------------------------------------------

Authority for This Rulemaking

    Title 49 of the United States Code specifies the FAA's authority to
issue rules on aviation safety. Subtitle I, Section 106, describes the
authority of the FAA Administrator. Subtitle VII, Aviation Programs,
describes in more detail the scope of the Agency's authority.
    We are issuing this rulemaking under the authority described in
Subtitle VII, Part A, Subpart III, Section 44701, ``General
requirements.'' Under that section, Congress charges the FAA with
promoting safe flight of civil aircraft in air commerce by prescribing
regulations for practices, methods, and procedures the Administrator
finds necessary for safety in air commerce. This regulation is within
the scope of that authority because it addresses an unsafe condition
that is likely to exist or develop on products identified in this
rulemaking action.

Regulatory Findings

    We have determined that this proposed AD would not have federalism
implications under Executive Order 13132. This proposed AD would not
have a substantial direct effect on the States, on the relationship
between the national Government and the States, or on the distribution
of power and responsibilities among the various levels of government.
    For the reasons discussed above, I certify that the proposed
regulation:
    1. Is not a ``significant regulatory action'' under Executive Order
12866;
    2. Is not a ``significant rule'' under the DOT Regulatory Policies
and Procedures (44 FR 11034, February 26, 1979); and
    3. Will not have a significant economic impact, positive or
negative, on a substantial number of small entities under the criteria
of the Regulatory Flexibility Act.
    We prepared a regulatory evaluation of the estimated costs to
comply with this proposed AD and placed it in the AD docket. See the
ADDRESSES section for a location to examine the regulatory evaluation.

List of Subjects in 14 CFR Part 39

    Air transportation, Aircraft, Aviation safety, Safety.

The Proposed Amendment

    Accordingly, under the authority delegated to me by the
Administrator, the FAA proposes to amend 14 CFR part 39 as follows:

PART 39--AIRWORTHINESS DIRECTIVES

    1. The authority citation for part 39 continues to read as follows:

    Authority: 49 U.S.C. 106(g), 40113, 44701.

Sec.  39.13  [Amended]

    2. The Federal Aviation Administration (FAA) amends Sec.  39.13 by
adding the following new airworthiness directive (AD):

Boeing: Docket No. FAA-2007-29227; Directorate Identifier 2007-NM-
100-AD.

Comments Due Date

    (a) The FAA must receive comments on this AD action by November
5, 2007.

Affected ADs

    (b) Certain requirements of this AD terminate certain
requirements of AD 96-23-05, amendment 39-9810.

Applicability

    (c) This AD applies to Boeing Model 747-100, 747-100B, 747-100B
SUD, 747-200B, 747-200C, 747-300, 747-400, 747-400D, and 747SR
series airplanes, certificated in any category, as identified in
Boeing Special Attention Service Bulletin 747-53-2460, Revision 1,
dated February 13, 2007, except airplanes that have been converted
to an all-cargo configuration. The requirements of this AD also
become applicable at the time when a converted airplane operating in
an all-cargo configuration is converted back to a passenger or
passenger/cargo configuration.

Unsafe Condition

    (d) This AD results from reports of cracking and/or a sharp edge
in the lower forward corner reveal of the number 3 main entry doors
(MEDs). We are issuing this AD to detect and correct fatigue
cracking of the lower forward corner reveal of the number 3 MEDs,
which could lead to the door escape slide departing from the
airplane when the door is opened and the slide is deployed, and
consequent injuries to passengers and crew using the door escape
slide during an emergency evacuation.

Compliance

    (e) You are responsible for having the actions required by this
AD performed within the compliance times specified, unless the
actions have already been done.

Service Bulletin Reference

    (f) The term ``service bulletin,'' as used in this AD, means the
Accomplishment Instructions of Boeing Special Attention Service
Bulletin 747-53-2460, Revision 1, dated February 13, 2007.

Actions for Group 3 Airplanes

    (g) For airplanes identified as Group 3 airplanes in the service
bulletin: Before the accumulation of 10,000 total flight cycles, or
within 1,000 flight cycles after the effective date of this AD,
whichever occurs later, do a detailed inspection for cracking of the
lower forward corner reveals in accordance with Part 8 of the
service bulletin.
    (1) If no cracking is found, repeat the inspection thereafter at
intervals not to exceed 6,000 flight cycles until a new or reworked
two-piece reveal is installed in accordance with Part 2 of the
service bulletin. No further action is required by this paragraph
for that location only after the replacement.

    Note 1: For the purpose of this AD, a one-piece machined
aluminum reveal may be reworked into a two-piece reveal in
accordance with Part 7 of the service bulletin after it was verified
to be crack free and without a sharp edge in accordance with Part 5
of the service bulletin, or after it was confirmed to be crack free
in accordance with Part 5 of the service bulletin and reworked to
remove a sharp edge in accordance with Part 6 of the service
bulletin.

    (2) If cracking is found, do the replacement specified in
paragraph (g)(2)(i) or (g)(2)(ii) of this AD.
    (i) Before further flight, replace the reveal with a new or
reworked two-piece reveal in accordance with Part 2 of the service
bulletin. No further action is required by this paragraph for that
location only after the replacement.
    (ii) Before further flight, replace the reveal with a new or
reworked one-piece machined aluminum reveal without a sharp edge in
accordance with Part 3 of the service bulletin. Within 10,000 flight
cycles after doing the replacement, do the inspection specified in
paragraph (g) of this AD and repeat the inspection thereafter at
intervals not to exceed 6,000 flight cycles until a new or reworked
two-piece reveal is installed in accordance with Part 2 of the
service bulletin. No further action is required by this paragraph
for that location only after the replacement with a two-piece
reveal.

    Note 2: For the purpose of this AD, a one-piece machined
aluminum reveal with a sharp edge may be reworked into a one-piece
machined aluminum reveal without a sharp edge in accordance with
Part 6 of the service bulletin after it was confirmed to be crack
free in accordance with Part 5 of the service bulletin. After the
sharp edge was removed, the one-piece machined aluminum reveal
without a sharp edge may be further reworked into a two-piece reveal
in accordance with Part 7 of the service bulletin.

Actions for Group 2 Airplanes and Group 1, Configuration 2 Airplanes

    (h) For airplanes identified as Group 2 airplanes in the service
bulletin: Before the accumulation of 1,500 total flight cycles, or
within 1,000 flight cycles after the effective date of this AD,
whichever occurs later, do the inspection specified in paragraph (j)
of this AD.
    (i) For airplanes identified as Group 1, Configuration 2
airplanes in the service bulletin: Within 1,500 flight cycles after
the lower forward corner reveal was last replaced or 1,000 flight
cycles after the effective date of this AD, whichever occurs later,
do the inspection specified in paragraph (j) of this AD.
    (j) At the applicable times specified in paragraphs (h) and (i)
of this AD: Do a detailed inspection of the lower forward corner
reveals for cracking and a sharp edge in accordance with Part 5 of
the service bulletin.
    (1) If no cracking and no sharp edge is found, before the
accumulation of another

10,000 flight cycles on the lower forward corner reveal, do the
detailed inspection for cracking specified in paragraph (j) of this
AD and inspect thereafter at intervals not to exceed 6,000 flight
cycles, until a new or reworked two-piece reveal is installed in
accordance with Part 2 of the service bulletin. No further action is
required by this paragraph for that location only after the
replacement.
    (2) If no cracking is found but a sharp edge is found, do the
action specified in paragraph (j)(2)(i) or (j)(2)(ii) of this AD.
    (i) Before further flight, replace the lower forward corner
reveal with a new or reworked two-piece reveal, in accordance with
Part 2 of the service bulletin. No further action is required by
this paragraph for that location only after the replacement.
    (ii) Before further flight, replace the reveal with a new or
reworked one-piece machined aluminum reveal without a sharp edge, in
accordance with Part 3 of the service bulletin. Within 10,000 flight
cycles after doing the replacement, do the actions specified in
paragraph (j) of this AD, except for the inspection for a sharp
edge.
    (3) If cracking is found, do the action specified in paragraph
(j)(3)(i) or (j)(3)(ii) of this AD.
    (i) Before further flight, replace the reveal with a new or
reworked two-piece reveal, in accordance with Part 2 of the service
bulletin. No further action is required by this paragraph for that
location only after the replacement.
    (ii) Before further flight, replace the lower forward corner
reveal with a new or reworked one-piece machined aluminum reveal
without a sharp edge, in accordance with Part 3 of the service
bulletin. Within 10,000 flight cycles after doing the replacement,
do the actions specified in paragraph (j) of this AD, except for the
inspection for a sharp edge.

Actions for Group 1, Configuration 1 Airplanes

    (k) For airplanes identified as Group 1, Configuration 1
airplanes in the service bulletin: Before the accumulation of 1,500
total flight cycles, or within 1,000 flight cycles after the
effective date of this AD, whichever occurs later, do a material
type inspection to determine if the lower forward corner reveals are
castings, in accordance with the service bulletin.
    (1) If the forward corner reveal is not a casting: Before
further flight, do the actions specified in paragraph (j) of this
AD, except for the inspection for a sharp edge.
    (2) If the forward corner reveal is a casting: Before the
accumulation of 7,000 total flight cycles, within 2,000 flight
cycles after the effective date of this AD, or within 3,000 flight
cycles since the forward corner reveal was inspected in accordance
with Boeing Service Bulletin 747-53A2378, whichever is later, do a
detailed inspection for cracking of the lower forward corner reveal,
in accordance with Part 1 of Boeing Special Attention Service
Bulletin 747-53-2460, Revision 1, dated February 13, 2007.
    (i) If no cracking is found: Repeat the inspection specified in
paragraph (k)(2) of this AD thereafter at intervals not to exceed
3,000 flight cycles until a new or reworked two-piece lower forward
corner reveal is installed in accordance with Part 2 of the service
bulletin. No further action is required by this paragraph for that
location only after the replacement.
    (ii) If cracking is found: Do the actions specified in paragraph
(k)(2)(ii)(A), (k)(2)(ii)(B), or (k)(2)(ii)(C) of this AD.
    (A) Before further flight, weld repair the reveal in accordance
with Part 4 of the service bulletin. Repeat the inspection specified
in paragraph (k)(2) of this AD thereafter at intervals not to exceed
3,000 flight cycles until a new or reworked two-piece reveal is
installed in accordance with Part 2 of the service bulletin.
    (B) Before further flight, replace the reveal with a new or
reworked two-piece reveal, in accordance with Part 2 of the service
bulletin. No further action is required by this paragraph for that
location only after the replacement.
    (C) Before further flight, replace the reveal with a new or
reworked one-piece machined aluminum reveal without a sharp edge, in
accordance with Part 3 of the service bulletin. Within 10,000 flight
cycles after doing the replacement, do the actions specified in
paragraph (j) of this AD, except for the inspection for a sharp
edge.

Operator's Equivalent Procedure

    (l) Although Step 5 of Figure 8 of the service bulletin
specifies that operators may accomplish the actions in accordance
with ``an operator's equivalent procedure,'' this AD requires
operators to accomplish Step 5 of Figure 8 in accordance with only
the procedures specified in Boeing Standard Overhaul Practices
Manual (SOPM) 20-20-02 as given in the service bulletin. An
``operator's equivalent procedure'' may be used only if approved as
an alternative method of compliance in accordance with paragraph (p)
of this AD.

Compliance With AD 2007-12-11 for MED 3 Only

    (m) Accomplishment of the applicable repair required by this AD
constitutes compliance with the repair of the lower forward corner
casting (reveal) of the number 3 MEDs only, as required by paragraph
(q)(2)(ii) of AD 2007-12-11 (which specifies the actions be done in
accordance with Boeing Service Bulletin 747-53A2378, Revision 1,
dated March 10, 1994; or Boeing Service Bulletin 747-53A2378,
Revision 3, dated August 11, 2005). Accomplishment of the actions of
this AD does not terminate the remaining requirements of AD 2007-12-
11.

Parts Installation

    (n) As of the effective date of this AD, no person may install a
door lower forward corner reveal made of cast 356 aluminum on any
airplane at a location specified by this AD.
    (o) As of the effective date of this AD, no person may install a
door lower forward corner reveal made of machined 6061 aluminum on
any airplane at a location specified by this AD, unless it has been
confirmed/reworked to be without a sharp edge in accordance with the
service bulletin.

Alternative Methods of Compliance (AMOCs)

    (p)(1) The Manager, Seattle Aircraft Certification Office (ACO),
FAA, has the authority to approve AMOCs for this AD, if requested in
accordance with the procedures found in 14 CFR 39.19.
    (2) To request a different method of compliance or a different
compliance time for this AD, follow the procedures in 14 CFR 39.19.
Before using any approved AMOC on any airplane to which the AMOC
applies, notify your appropriate principal inspector (PI) in the FAA
Flight Standards District Office (FSDO), or lacking a PI, your local
FSDO.
    (3) An AMOC that provides an acceptable level of safety may be
used for any repair required by this AD, if it is approved by an
Authorized Representative for the Boeing Commercial Airplanes
Delegation Option Authorization Organization who has been authorized
by the Manager, Seattle ACO, to make those findings. For a repair
method to be approved, the repair must meet the certification basis
of the airplane, and the approval must specifically refer to this
AD.

    Issued in Renton, Washington, on September 10, 2007.
Ali Bahrami,
Manager, Transport Airplane Directorate, Aircraft Certification
Service.
 [FR Doc. E7-18420 Filed 9-18-07; 8:45 am]

BILLING CODE 4910-13-P


[Federal Register Volume 77, Number 113 (Tuesday, June 12, 2012)]
[Notices]
[Pages 35091-35092]
[FR Doc No: 2012-14164]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-67124; File No. SR-CBOE-2012-052]

Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change to Amend the CBOE Stock Exchange Fees Schedule

June 5, 2012.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on May 31, 2012, the Chicago Board Options Exchange, Incorporated
(the ``Exchange'' or ``CBOE'') filed with the Securities and Exchange
Commission (the ``Commission'') the proposed rule change as described
in Items I, II and III below, which Items have been prepared by the
Exchange. The Commission is publishing this notice to solicit comments
on the proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to amend the CBOE Stock Exchange (``CBSX'')
Fees Schedule. The text of the proposed rule change is available on the
Exchange's Web site (http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), at the Exchange's Office of the
Secretary, and at the Commission Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend the CBSX Fees Schedule with regards
to connectivity fees. CBSX recently moved its trading systems over to
the Equinix NY4 facility (``NY4''). In addition to 1 Gigabit Ethernet
(``1 Gbps'') network access, NY4 has capacity to accommodate 10 Gigabit
Ethernet (``10 Gbps'') network access. The Exchange would like to make
such a connection available to CBSX market participants. However, the
equipment and infrastructure necessary to provide the 10 Gbps
connection is more expensive than that necessary to provide a 1 Gbps
connection. As such, the Exchange proposes to adopt a $1,000 per month
fee for access to a 10 Gbps Network Access Port ($2,000 for Sponsored
Users), and to clarify on the Fees Schedule that the connection
currently being provided for $250 per month ($500 for Sponsored Users)
is for a 1 Gbps connection to a Network Access Port. CBSX market
participants will be able to elect to connect to CBSX's trading system
via either a 1 Gbps or 10 Gbps Network Access port. Regardless of which
is chosen, the Network Access Port fee will be assessed for each port
that provides direct access to CBSX's trading system. The Exchange
currently charges a different rate for regular access and Sponsored
User access, and merely proposes to increase the rates in equal
proportion.
    The proposed change is to take effect on June 1, 2012.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with
the Act and the rules and regulations thereunder applicable to the
Exchange and, in particular, the requirements of

Section 6(b) of the Act.\3\ Specifically, the Exchange believes the
proposed rule change is consistent with the Section 6(b)(5) \4\
requirements that the rules of an exchange be designed to promote just
and equitable principles of trade, to prevent fraudulent and
manipulative acts, to remove impediments to and to perfect the
mechanism for a free and open market and a national market system, and,
in general, to protect investors and the public interest, and with
Section 6(b)(4) of the Act \5\, which provides that Exchange rules may
provide for the equitable allocation of reasonable dues, fees, and
other charges among its Trading Permit Holders and other persons using
its facilities.
---------------------------------------------------------------------------

    \3\ 15 U.S.C. 78f(b).
    \4\ 15 U.S.C. 78f(b)(5).
    \5\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    Assessing a higher fee for 10 Gbps connectivity than for 1 Gbps
connectivity is reasonable because 10 Gbps connectivity is more robust
than 1 Gbps connectivity, and is equitable and not unfairly
discriminatory because 10 Gbps connectivity requires more costly
equipment and maintenance, and the Exchange must recoup the costs
related to providing 10 Gbps connectivity. Further, CBSX market
participants may still elect for the less-expensive 1 Gbps
connectivity. Finally, the amount of the fee for 10 Gbps connectivity
is less than the amount of the fees for 10 Gbps connectivity assessed
by other exchanges.\6\
---------------------------------------------------------------------------

    \6\ See New York Stock Exchange Price List, page 13, which lists
monthly prices of $12,000-61,500 for different types of 10 Gbps
connectivity (along with initial charges of $10,000-50,000) and
International Securities Exchange Schedule of Fees, page 9, which
lists a low-latency Ethernet network access fee of $7,000 per month.
---------------------------------------------------------------------------

    Assessing higher fees for Sponsored Users is equitable and not
unfairly discriminatory because Sponsored Users are able to access the
Exchange and use the equipment provided without possessing a trading
permit. As such, Trading Permit Holders who have a trading permit will
have a higher level of commitment to transacting business on CBSX and
using Exchange facilities than Sponsored Users. Finally, these
increases maintain the same proportionate amounts that are paid by
regular users relative to Sponsored Users.
    Clarifying that the current $250 monthly fee for a Network Access
Port ($500 for Sponsored Users) is for a 1 Gbps connection removes
impediments to and to perfect the mechanism for a free and open market
and a national market system, and, in general, protects investors and
the public interest by eliminating any confusion about which connection
will be assessed which fee (now that CBSX will be offering both the 1
Gbps and 10 Gbps connection options).

B. Self-Regulatory Organization's Statement on Burden on Competition

    CBOE does not believe that the proposed rule change will impose any
burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act.

C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others

    The Exchange neither solicited nor received comments on the
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action

    The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)\7\ of the Act and paragraph (f) of Rule 19b-4 \8\
thereunder. At any time within 60 days of the filing of the proposed
rule change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 17 CFR 240.19b-4(f).
---------------------------------------------------------------------------

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-CBOE-2012-052 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.
    All submissions should refer to File Number SR-CBOE-2012-052. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such filing also will be available
for inspection and copying at the principal offices of the Exchange.
All comments received will be posted without change; the Commission
does not edit personal identifying information from submissions. You
should submit only information that you wish to make available
publicly. All submissions should refer to File Number SR-CBOE-2012-052,
and should be submitted on or before July 3, 2012.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
---------------------------------------------------------------------------

    \9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-14164 Filed 6-11-12; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register: July 21, 2010 (Volume 75, Number 139)]
[Notices]
[Page 42436-42437]
[DOCID:fr21jy10-49]

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

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

Houston Pipe Line Company LP--Bammel Storage, Docket No. PR10-51-
000, et. al.; Notice of Baseline Filings

July 14, 2010.

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

------------------------------------------------------------------------
Houston Pipe Line Company LP--     Docket No. PR10-51-000.
 Bammel Storage.
J-W Pipeline Company.............  Docket No. PR10-54-000.
Acadian Gas Pipeline System......  Docket No. PR10-56-000.
Lobo Pipeline Company L.P........  Docket No. PR10-57-000.
Cypress Gas Pipeline, LLC........  Docket No. PR10-58-000.
Jackson Pipeline Company.........  Docket No. PR10-59-000.
DCP Intrastate Network, LLC......  Docket No. PR10-60-000.
                                   (Not Consolidated).
------------------------------------------------------------------------

    Take notice that on July 1, 2010, July 2, 2010, July 8, 2010, July
9, 2010, and July 13, 2010, respectively the applicants listed above
submitted their baseline filing of its Statement of Operating
Conditions for services provided under section 311 of the Natural Gas
Policy Act of 1978 (NGPA).
    Any person desiring to participate in this rate proceeding must
file a motion to intervene or to protest this filing must file in
accordance with rules 211 and 214 of the Commission's Rules of Practice
and Procedure (18 CFR 385.211 and 385.214). Protests will be considered
by the Commission in determining the appropriate action to be taken,
but will not serve to make protestants parties to the proceeding. Any
person wishing to become a party must file a notice of intervention or
motion to intervene, as appropriate. Such notices, motions, or protests
must be filed on or before the date as indicated below. Anyone filing
an intervention or protest must serve a copy of that document on the
Applicant. Anyone filing an intervention or protest on or before the
intervention or protest date need not serve motions to intervene or
protests on persons other than the Applicant.
    The Commission encourages electronic submission of protests and
interventions in lieu of paper using the ``eFiling''link at http://
www.ferc.gov. Persons unable to file electronically should submit an
original and 14 copies of the protest or intervention to the Federal
Energy Regulatory Commission, 888 First Street, NE., Washington, DC
20426.
    This filing is accessible on-line at http://www.ferc.gov, using the
``eLibrary''link and is available for review in the Commission's Public
Reference Room in Washington, DC. There is an ``eSubscription'' link on
the Web site that enables subscribers to receive e-mail notification
when a document is added to a subscribed docket(s). For assistance with
any FERC Online service, please e-mail<EMAIL_ADDRESS>or
call<PHONE_NUMBER> (toll free). For TTY, call<PHONE_NUMBER>.
    Comment Date: 5 p.m. e.t. on Tuesday, July 27, 2010.

Kimberly D. Bose,
Secretary.
[FR Doc. 2010-17730 Filed 7-20-10; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register: April 13, 2010 (Volume 75, Number 70)]
[Notices]
[Page 18908-18915]
[DOCID:fr13ap10-97]

=======================================================================
-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. IC-29205; File No. 812-13703]

Jackson National Life Insurance Company, et al.

April 7, 2010.
AGENCY: The Securities and Exchange Commission (``Commission'').

ACTION: Notice of application for an order under Section 6(c) of the
Investment Company Act of 1940 (the ``Act'') granting exemptions from
the provisions of Sections 2(a)(32), 22(c) and 27(i)(2)(A) of the Act
and Rule 22c-1 thereunder to permit the recapture of contract
enhancements applied to purchase payments made under certain deferred
variable annuity contracts.

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

APPLICANTS: Jackson National Life Insurance Company (``Jackson
National''), Jackson National Separate Account--I (the ``JNL Separate
Account''), Jackson National Life Insurance Company of New York (``JNL
New York'' and collectively with Jackson National, the ``Insurance
Companies,'' and individually as made appropriate by the context, an
``Insurance Company''), JNLNY Separate Account I (the ``JNLNY Separate
Account,'' collectively with the JNL Separate Account, the ``Separate
Accounts,'' and individually as made appropriate by the context, a
``Separate Account'') and Jackson National Life Distributors LLC
(``Distributor,'' and collectively with the Insurance Companies and the
Separate Accounts, ``Applicants'').

SUMMARY OF APPLICATION: Applicants seek an order under Section 6(c) of
the

Act to exempt certain transactions from the provisions of Sections
2(a)(32), 22(c), and 27(i)(2)(A) of the Act and Rule 22c-1 thereunder,
to the extent necessary to permit the recapture, under specified
circumstances, of certain contract enhancements applied to purchase
payments made under the deferred variable annuity contracts described
herein that Jackson National has issued and will issue through the JNL
Separate Account (the ``JNL Contracts'') and that JNL New York has
issued and will issue through the JNLNY Separate Account (the ``JNLNY
Contracts,'' and collectively with the JNL Contracts, the
``Contracts'') as well as other contracts that the Insurance Companies
may issue in the future through their existing or future separate
accounts (``Other Accounts'') that are substantially similar in all
material respects to the Contracts (``Future Contracts''). Applicants
also request that the order being sought extend to any other Financial
Industry Regulatory Authority (``FINRA'') member broker-dealer
controlling or controlled by, or under common control with, Jackson
National, whether existing or created in the future, that serves as
distributor or principal underwriter for the Contracts or Future
Contracts (``Affiliated Broker-Dealers'') and any successors in
interest to the Applicants.

Filing Date: The application was filed on September 24, 2009, and
amended on October 16, 2009; January 8, 2010; February 24, 2010; and
March 29, 2010.

Hearing or Notification of Hearing: An order granting the application
will be issued unless the Commission orders a hearing. Interested
persons may request a hearing by writing to the Secretary of the
Commission and serving Applicants with a copy of the request,
personally or by mail. Hearing requests should be received by the
Commission by 5:30 p.m. on April 29, 2010, and should be accompanied by
proof of service on Applicants, in the form of an affidavit or, for
lawyers, a certificate of service. Hearing requests should state the
nature of the writer's interest, the reason for the request, and the
issues contested. Persons may request notification of a hearing by
writing to the Secretary of the Commission.

ADDRESSES: Secretary, Securities and Exchange Commission, 100 F Street,
NE., Washington, DC 20549-1090. Applicants: c/o Jackson National Life
Insurance Company, 1 Corporate Way, Lansing, Michigan 48951, Attn:
Anthony L. Dowling, Esq.

FOR FURTHER INFORMATION CONTACT: Ellen J. Sazzman, Senior Counsel, at
(202) 551-6762, or Harry Eisenstein, Branch Chief, at<PHONE_NUMBER>,
Office of Insurance Products, Division of Investment Management.

SUPPLEMENTARY INFORMATION: The following is a summary of the
Application. The complete Application may be obtained via the
Commission's Web site by searching for the file number, or an applicant
using the Company name box at http://www.sec.gov/search/search.htm or
by calling<PHONE_NUMBER>.

Applicants' Representations

    1. Jackson National is a stock life insurance company organized
under the laws of the state of Michigan in June 1961. Its legal
domicile and principal business address is 1 Corporate Way, Lansing,
Michigan 48951. Jackson National is admitted to conduct life insurance
and annuity business in the District of Columbia and all states except
New York. Jackson National is ultimately a wholly owned subsidiary of
Prudential plc (London, England).
    2. JNL New York is a stock life insurance company organized under
the laws of the state of New York in July 1995. Its legal domicile and
principal address is 2900 Westchester Avenue, Purchase, New York 10577.
JNL New York is admitted to conduct life insurance and annuity business
in Delaware, Michigan, and New York. JNL New York is ultimately a
wholly owned subsidiary of Prudential plc (London, England).
    3. The JNL Separate Account was established by Jackson National on
June 14, 1993, pursuant to the provisions of Michigan law and the
authority granted under a resolution of Jackson National's Board of
Directors. The JNLNY Separate Account was established by JNL New York
on September 12, 1997, pursuant to the provisions of New York law and
the authority granted under a resolution of JNL New York's Board of
Directors. Jackson National and JNL New York are the depositors of
their respective Separate Accounts. Each of the Separate Accounts meets
the definition of a ``separate account'' under the federal securities
laws and each is registered with the Commission as a unit investment
trust under the Act (File Nos. 811-8664 and 811-8401, respectively).
JNL Separate Account and JNLNY Separate Account will fund,
respectively, the variable benefits available under the JNL Contracts
and the JNLNY Contracts. The registration statements relating to the
offering of the Contracts were filed under the Securities Act of 1933
(the ``1933 Act'') (File Nos. 333-70472, 333-70384).
    4. The Distributor is a wholly owned subsidiary of Jackson National
and serves as the distributor of the Contracts. The Distributor is
registered with the Commission as a broker-dealer under the Securities
Exchange Act of 1934 (the ``1934 Act'') and is a member of FINRA. The
Distributor enters into selling group agreements with affiliated and
unaffiliated broker-dealers. The Contracts are sold by licensed
insurance agents, where the Contracts may be lawfully sold, who are
registered representatives of broker-dealers that are registered under
the 1934 Act and are members of FINRA.
    5. The Contracts require a minimum initial premium payment of
$5,000 or $10,000 under most circumstances depending on the contract
($2,000 for a qualified plan contract). Subsequent payments may be made
at any time during the accumulation phase but before the contract
anniversary after the owner's 85th birthday. Each subsequent payment
must be at least $500 ($50 under an automatic payment plan). Prior
approval of the relevant Insurance Company is required for aggregate
premium payments of over $1,000,000.
    6. The Contracts permit owners to accumulate contract values on a
fixed basis through allocations to one of six fixed accounts (the
``Fixed Accounts''). In addition, if the optional LifeGuard Select
Guaranteed Minimum Withdrawal Benefit (``GMWB'') or the optional
LifeGuard Select with Joint Option Guaranteed Minimum Withdrawal
Benefit (``GMWB'') is elected in the JNL Contracts, automatic transfers
of an owner's contract value may be allocated to a fixed account
designated for these guaranteed minimum withdrawal benefits (``GMWB
Fixed Account'').
    7. The Contracts also permit owners to accumulate contract values
on a variable basis, through allocations to one or more of the sub-
accounts, also referred to as investment divisions, of the Separate
Accounts (the ``Investment Divisions,'' collectively with the Fixed
Account and the GMWB Fixed Account, the ``Allocation Options''). Under
most Contracts, 98 Investment Divisions currently are expected to be
offered through the Separate Accounts but additional Investment
Divisions may be offered in the future and some could be eliminated or
combined with other Investment Divisions in the future. Similarly,
Future Contracts may offer additional or different Investment
Divisions. Each Investment Division will invest in shares of a
corresponding series (``Series'') of JNL Series Trust (``Trust'') or
JNL Variable Fund LLC (``Fund'') (collectively the ``Trust and Fund'').
Not all Investment Divisions may be available under every Contract.

The Trust and Fund are open-end management investment companies
registered under the Act and their shares are registered under the 1933
Act.
    8. Transfers among the Investment Divisions are permitted. The
first 15 transfers in a contract year are free; subsequent transfers
cost $25. Certain transfers to, from and among the Fixed Account
Options are also permitted during the Contracts' accumulation phase,
but are subject to certain adjustments and limitations. Dollar cost
averaging and rebalancing transfers are offered at no charge and do not
count against the 15 free transfers permitted each year. If the
optional LifeGuard Select GMWB or the optional LifeGuard Select with
Joint Option GMWB is elected in the JNL Contracts, automatic transfers
may be required to and from the GMWB Fixed Account according to non-
discretionary formulas. These automatic transfers also do not count
against the 15 free transfers permitted each year and are without
charge.
    9. If the owner dies during the accumulation phase of the
Contracts, the beneficiary named by the owner is paid a death benefit
by the Insurance Company. The Contracts' base death benefit, which
applies unless an optional death benefit has been elected, is a payment
to the beneficiary of the greater of: (i) Contract value on the date
the Insurance Company receives proof of death and completed claim forms
from the beneficiary or (ii) the total premiums paid under that
Contract minus any prior withdrawals (including any withdrawal charges,
recapture charges or other charges or adjustments applicable to such
withdrawals).
    10. The owner of a JNL Contract may be offered certain optional
endorsements (for various fees) that can change the death benefit paid
to the beneficiary. First, an ``Earnings Protection Benefit
Endorsement'' is offered to owners who are no older than age 75 when
their Contracts are issued. Second, the owner of a JNL Contract
currently may be offered six optional death benefits (state variations
may apply) that would replace the base death benefit. The optional
death benefits for the JNL Contract include the following: (i) A 5%
Roll-Up death benefit, (ii) a 6% Roll-Up death benefit, (iii) a Highest
Quarterly Anniversary Value Death Benefit, (iv) a Combination 5% Roll-
Up and Highest Quarterly Anniversary Value Death Benefit, (v) a
Combination 6% Roll-Up and Highest Quarterly Anniversary Value Death
Benefit, and (vi) a death benefit available only in conjunction with
the purchase of a particular GMWB (LifeGuard Freedom 6 GMWB).
    11. The owner of a JNLNY Contract may also be offered certain
optional endorsements that can change the death benefit paid to the
beneficiary. The owner of a JNLNY Contract may be offered the following
two optional death benefits that would replace the base death benefit:
(i) A Highest Anniversary Value Death Benefit which is the greatest of
the contract value on the date JNL New York receives proof of death and
completed claim forms from the beneficiary; or total net premiums since
the contract was issued; or the greatest contract value on any contract
anniversary prior to the owner's 81st birthday, adjusted for any
withdrawals subsequent to that contract anniversary (including any
applicable withdrawal charges, recapture charges, and other charges or
adjustments for such withdrawals), plus any premium paid subsequent to
that contract anniversary; and (ii) a death benefit available only in
conjunction with the purchase of the LifeGuard Freedom 6 GMWB.
    12. The Contracts offer fixed and variable versions of the
following four types of annuity payment or ``income payment'': Life
income, joint and survivor, life annuity with at least 120 or 240
monthly payments guaranteed to be paid (although not guaranteed as to
amount if variable), and income for a specified period of 5 to 30
years. The Insurance Companies may also offer other income payment
options. The Contracts may also offer an optional Guaranteed Minimum
Income Benefit (``GMIB'') endorsement and various GMWB optional
endorsements.
    13. All contract enhancements are paid from the Insurance Company's
general account assets. The contract enhancement endorsements available
are the 2% Contract Enhancement endorsement, 3% Contract Enhancement
endorsement, 4% Contract Enhancement endorsement, or 5% Contract
Enhancement endorsement. However, the 5% Contract Enhancement
endorsement is not available under the JNLNY Contracts. If one of the
optional contract enhancement endorsements is elected, the Insurance
Company will add an additional amount to the owner's contract value (a
``Contract Enhancement'') for the initial premium payment, and for each
subsequent premium payment received within the first seven contract
years (five contract years for the 2% Contract Enhancement
endorsement). The actual Contract Enhancement percentage applied to the
premium payment varies, depending upon which Contract Enhancement
endorsement is elected and the contract year in which the premium
payment is received as follows:

----------------------------------------------------------------------------------------------------------------
                                                             Contract year premium is received
                                         -----------------------------------------------------------------------
                                              0-1         1-2         2-3         3-4         4-5         5+
----------------------------------------------------------------------------------------------------------------
                                       2% Contract Enhancement Endorsement
----------------------------------------------------------------------------------------------------------------
Contract Enhancement Percentage of the         2.00%       2.00%       1.25%       1.25%       0.50%          0%
 Premium Payment........................
----------------------------------------------------------------------------------------------------------------

                                                                                Contract year premium is received
                                                         -----------------------------------------------------------------------------------------------
                                                              0-1         1-2         2-3         3-4         4-5         5-6         6-7         7+
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                           3% Contract Enhancement Endorsement
--------------------------------------------------------------------------------------------------------------------------------------------------------
Contract Enhancement Percentage of the Premium Payment..       3.00%       3.00%       2.25%       2.00%       2.00%       1.00%       1.00%          0%
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                           4% Contract Enhancement Endorsement
--------------------------------------------------------------------------------------------------------------------------------------------------------
Contract Enhancement Percentage of the Premium Payment..       4.00%       4.00%       3.00%       2.50%       2.50%       1.25%       1.25%          0%
--------------------------------------------------------------------------------------------------------------------------------------------------------

                                        5% Contract Enhancement Endorsement (not available under JNLNY Contracts)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Contract Enhancement Percentage of the Premium Payment..       5.00%       4.50%       3.75%       3.00%       2.25%       1.75%       1.00%          0%
--------------------------------------------------------------------------------------------------------------------------------------------------------

    14. At issue, a Contract owner can choose only one of the Contract
Enhancement endorsements. An owner may not elect the 3%, 4%, or 5%
Contract Enhancement endorsement if the 20% additional free withdrawal
endorsement is elected. The Insurance Companies will allocate the
Contract Enhancement to the Fixed Accounts and/or Investment Divisions
in the same proportion as the premium payment allocation. Contract
Enhancement endorsements are available only to owners 87 years old and
younger.
    15. There is an asset-based charge for each of the Contract
Enhancement endorsements. The 2% Contract Enhancement endorsement has a
0.395% charge that applies only for the first five contract years, as
opposed to five years from the date of the premium payment. The asset-
based charges for the other Contract Enhancement endorsements apply
only for the first seven contract years, as opposed to seven years from
the date of the premium payment, and are 0.42%, 0.56%, and 0.695%,
respectively, for the 3%, 4%, and 5% Contract Enhancement endorsements.
These charges will also be assessed against any amounts that Contract
owners have allocated to the Fixed Accounts, resulting in a lower
annual credited interest rate that would apply to the Fixed Account if
the Contract Enhancement endorsement had not been elected.
    16. The Insurance Companies will recapture all or a declining
portion of any Contract Enhancements by imposing a recapture charge
whenever an owner: (i) Makes a total withdrawal within the recapture
charge period (up to five years after a premium payment in the case of
the 2% Contract Enhancement endorsement and up to seven years after a
premium payment in the case of the other Contract Enhancement
endorsements) or a partial withdrawal of corresponding premiums within
the recapture charge period in excess of those permitted under the
Contracts' free withdrawal provisions, unless the withdrawal is made
for certain health-related emergencies specified in the Contracts; (ii)
elects to receive payments under an income option within the recapture
charge period; or (iii) returns the Contract during the free-look
period.
    17. The amount of the recapture charge varies, depending upon (i)
Which Contract Enhancement endorsement is elected; (ii) the
corresponding declining amount of the Contract Enhancement based on the
contract year when the premium payment being withdrawn was received;
and (iii) when the charge is imposed based on Completed Years since
receipt of the related premium. For Contracts with the 2% or 3%
Contract Enhancement endorsement, the recapture charge is as follows:

                                                          Contract Enhancement Recapture Charge
              [as a percentage of the corresponding premium payment withdrawn if an optional Contract Enhancement endorsement is selected]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                Completed years since receipt of premium
            Contract year premium is received            -----------------------------------------------------------------------------------------------
                                                              0-1         1-2         2-3         3-4         4-5         5-6         6-7         7+
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                           2% Contract Enhancement Endorsement
--------------------------------------------------------------------------------------------------------------------------------------------------------
0-1.....................................................          2%          2%       1.25%       1.25%        .50%          0%          0%          0%
1-2.....................................................          2%       1.25%       1.25%        .50%          0%          0%          0%          0%
2-3.....................................................       1.25%       1.25%        .50%          0%          0%          0%          0%          0%
3-4.....................................................       1.25%        .50%          0%          0%          0%          0%          0%          0%
4-5.....................................................        .50%          0%          0%          0%          0%          0%          0%          0%
5-6.....................................................          0%          0%          0%          0%          0%          0%          0%          0%
6-7.....................................................          0%          0%          0%          0%          0%          0%          0%          0%
7+......................................................          0%          0%          0%          0%          0%          0%          0%          0%
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                           3% Contract Enhancement Endorsement
--------------------------------------------------------------------------------------------------------------------------------------------------------
0-1.....................................................          3%          3%          2%          2%          2%          1%          1%          0%
1-2.....................................................          3%          2%          2%          2%          1%          1%          0%          0%
2-3.....................................................          2%          2%       1.25%          1%          1%          0%          0%          0%
3-4.....................................................          2%          2%          1%          1%          0%          0%          0%          0%
4-5.....................................................          2%          1%          1%          0%          0%          0%          0%          0%
5-6.....................................................          1%          1%          0%          0%          0%          0%          0%          0%
6-7.....................................................          1%          0%          0%          0%          0%          0%          0%          0%
7+......................................................          0%          0%          0%          0%          0%          0%          0%          0%
--------------------------------------------------------------------------------------------------------------------------------------------------------

    18. Following are recapture charges for JNL Contracts having the 4%
or 5% Contract Enhancement endorsement. The 4% Contract Enhancement
Recapture Charge schedule applicable to JNLNY Contracts is provided
later in this notice. The 5% Contract Enhancement Recapture Charge
schedule is not applicable to JNLNY Contracts because the 5% Contract
Enhancement endorsement is not available under the JNLNY Contracts.

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                Contract year premium is received
        Completed years since receipt of premium         -----------------------------------------------------------------------------------------------
                                                              0-1         1-2         2-3         3-4         4-5         5-6         6-7         7+
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                         4% Contract Enhancement Endorsement (not applicable to JNLNY Contracts)
--------------------------------------------------------------------------------------------------------------------------------------------------------
0-1.....................................................          4%          4%       2.50%       2.50%       2.50%       1.25%       1.25%          0%
1-2.....................................................          4%       2.50%       2.50%       2.50%       1.25%       1.25%          0%          0%
2-3.....................................................       2.50%       2.50%          2%       1.25%       1.25%          0%          0%          0%
3-4.....................................................       2.50%       2.50%       1.25%       1.25%          0%          0%          0%          0%
4-5.....................................................       2.50%       1.25%       1.25%          0%          0%          0%          0%          0%
5-6.....................................................       1.25%       1.25%          0%          0%          0%          0%          0%          0%
6-7.....................................................       1.25%          0%          0%          0%          0%          0%          0%          0%
7+......................................................          0%          0%          0%          0%          0%          0%          0%          0%
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                        5% Contract Enhancement Endorsement (not available under JNLNY Contracts)
--------------------------------------------------------------------------------------------------------------------------------------------------------
0-1.....................................................       4.50%       3.75%       3.25%       2.75%          2%       1.25%          1%          0%
1-2.....................................................       3.75%       3.25%       2.75%          2%       1.25%          1%          0%          0%
2-3.....................................................       3.25%       2.75%          2%       1.25%          1%          0%          0%          0%
3-4.....................................................       2.75%          2%       1.25%          1%          0%          0%          0%          0%
4-5.....................................................          2%       1.25%          1%          0%          0%          0%          0%          0%
5-6.....................................................       1.25%          1%          0%          0%          0%          0%          0%          0%
6-7.....................................................          1%          0%          0%          0%          0%          0%          0%          0%
7+......................................................          0%          0%          0%          0%          0%          0%          0%          0%
--------------------------------------------------------------------------------------------------------------------------------------------------------

    19. A ``Completed Year'' is the succeeding twelve months from the
date on which the Insurance Companies receive a premium payment.
Completed Years specify the years from the date of receipt of the
premium and do not refer to contract years. If the premium receipt date
is on the issue date of the Contract then Completed Year 0-1 does not
include the first contract anniversary. The first contract anniversary
begins Completed Year 1-2 and each successive contract anniversary. The
first contract year (contract year 0-1) starts on the issue date and
extends to, but does not include, the first contract anniversary.
Subsequent contract years start on an anniversary date and extend to,
but do not include, the next anniversary date. If the premium receipt
date is other than the issue date or a subsequent contract anniversary,
there is no correlation of the contract anniversary date and Completed
Years. For example, if the issue date is January 15, 2010 and a premium
payment is received on February 28, 2010, then, although the first
contract anniversary is January 15, 2011, the end of Competed Year 0-1
for that premium payment would be February 27, 2011, and February 28,
2011 begins Completed Year 1-2.
    20. The recapture charge percentage will be applied to the
corresponding premium reflected in the amount withdrawn or the amount
applied to income payments that remain subject to a recapture charge.
The corresponding premium is determined by treating amounts withdrawn
as withdrawals first of earnings, which bear no charge, and then
purchase payments (oldest purchase payments first). The amount
recaptured will be taken from the Investment Divisions and the Fixed
Account (and the GMWB Fixed Account, if applicable) in the proportion
their respective values bear to the contract value. The dollar amount
recaptured will never exceed the dollar amount of the Contract
Enhancement added to the Contract. Recapture charges will be applied
upon electing to commence income payments, even in a situation where
the withdrawal charge is waived.
    21. The Insurance Companies do not assess the recapture charge on
any payments paid out as: Death benefits; withdrawals of earnings;
withdrawals taken under the free withdrawal provisions, which allow for
free withdrawals of up to 20% of remaining premium, less earnings
(where a withdrawal is taken that exceeds the free withdrawal amount,
the recapture charge is imposed only on the excess amount above the
free withdrawal amount); withdrawals necessary to satisfy the required
minimum distribution of the Internal Revenue Code (if the withdrawal
requested exceeds the required minimum distribution, the recapture
charge will not be waived on the required minimum distribution); if
permitted by the owner's state, withdrawals of up to $250,000 from the
JNL Separate Account, the Fixed Account or the GMWB Fixed Account in
connection with the owner's terminal illness or if the owner needs
extended hospital or nursing home care as provided in the Contract
(this recapture charge waiver is not available under the JNLNY
Contracts); or if permitted by the owner's state, withdrawals of up to
25% (12.5% for each of two joint owners) of contract value from the JNL
Separate Account, the Fixed Account, or the GMWB Fixed Account in
connection with certain serious medical conditions specified in the
Contract (this recapture charge waiver is not available under the JNLNY
Contracts).
    22. The contract value will reflect any gains or losses
attributable to a Contract Enhancement described above. Contract
Enhancements, and any gains or losses attributable to a Contract
Enhancement will be considered earnings under the Contract for tax
purposes and for purposes of calculating free withdrawal amounts.
    23. The JNL Contracts have a ``free-look'' period of ten days
(twenty days for JNLNY Contracts) after the owner receives the Contract
(or any longer period required by state law). Contract value (or
premiums paid, as may be required by state law), less the full amount
of any Contract Enhancement(s) is returned upon exercise of free-look
rights by an owner. Therefore, 100% of the Contract Enhancement will be
recaptured under all circumstances if an owner returns the Contract
during the free-look period, but any gain or loss on investments of the
Contract Enhancement would be retained by the owner. The dollar amount
recaptured will never exceed the dollar amount of the Contract
Enhancement added to the Contract. A withdrawal charge will not be
assessed upon exercise of free look rights.
    24. The withdrawal charges shown in the table below apply to
differing versions of the JNL Contracts. The withdrawal charge
schedules applicable to the JNLNY Contracts are provided

later in this notice. The amount of the withdrawal charge depends upon
when the charge is imposed based on the Completed Years since the
receipt of the related premium as follows:

                                Withdrawal Charge (as a Percentage of Premium Payments) Not Applicable to JNLNY Contracts
--------------------------------------------------------------------------------------------------------------------------------------------------------
        Completed years since receipt of premium              0-1         1-2         2-3         3-4         4-5         5-6         6-7         7+
--------------------------------------------------------------------------------------------------------------------------------------------------------
Withdrawal Charge (Base Withdrawal Charge Schedule for          8.5%          8%          7%          6%          5%          4%          2%           0
 Offerings under File Nos. 333-70472 and 333-132128)....
Withdrawal Charge (Base Withdrawal Charge Schedule for             8           8           7           6           0           0           0           0
 Offering under File No. 333-119656)....................
Withdrawal Charge if Five-Year Period is elected                   8           7           6           4           2           0           0           0
 (Optional Five-Year Withdrawal Charge Schedule for
 Offerings under File No. 333-70472)....................
Withdrawal Charge if Four-Year Period is elected                   8           7         5.5         3.5           0           0           0           0
 (Optional Four-Year Withdrawal Charge Schedule for
 Offering under File No. 333-132128)....................
--------------------------------------------------------------------------------------------------------------------------------------------------------

    25. The Insurance Companies do not assess the withdrawal charge on
any payments paid out as: Death benefits; election to begin income
payments after the first contract year under JNL Contracts and after 13
months from the issue date under JNLNY Contracts; cancellation of the
Contract upon exercise of free look rights by an owner; withdrawals of
earnings; withdrawals taken under the free withdrawal provision, which
allows for free withdrawals up to 20% of remaining premium, less
earnings (where a withdrawal is taken that exceeds the free withdrawal
amount, the withdrawal charge is imposed only on the excess amount
above the free withdrawal amount); withdrawals necessary to satisfy the
required minimum distribution of the Internal Revenue Code (if the
withdrawal requested exceeds the required minimum distribution, the
withdrawal charge will not be waived on the required minimum
distribution); if permitted by the owner's state law, withdrawals of up
to $250,000 from the Investment Divisions, Fixed Account, or GMWB Fixed
Account of the Contracts in connection with the terminal illness of the
owner of a Contract, or in connection with extended hospital or nursing
home care for the owner (this withdrawal charge waiver is not available
under JNLNY Contracts); and if permitted by the owner's state,
withdrawals of up to 25% (12.5% each for two joint owners) of contract
value from the Investment Divisions, Fixed Account, or GMWB Fixed
Account of the Contracts in connection with certain serious medical
conditions specified in the Contract (this withdrawal charge waiver is
not available under JNLNY Contracts).
    26. The JNLNY Contracts are identical to the JNL Contracts in the
operation of Contract Enhancements, Contract Enhancement charges, and
Contract Enhancement recapture charges except that: (1) The 5% Contract
Enhancement endorsement is not available under the JNLNY Contracts, (2)
the recapture charge waivers for terminal illness and specified medical
conditions are not available under JNLNY Contracts, and (3) the
recapture charges for the 4% Contract Enhancement endorsement are 1%
less for JNLNY Contracts in certain years than in the JNL Contracts, as
indicated in the table below:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                Contract year premium is received
        Completed years since receipt of premium         -----------------------------------------------------------------------------------------------
                                                              0-1         1-2         2-3         3-4         4-5         5-6         6-7         7+
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                              4% Contract Enhancement Recapture Charge for JNLNY Contracts
--------------------------------------------------------------------------------------------------------------------------------------------------------
0-1.....................................................          3%          3%       2.50%       2.50%       2.50%       1.25%       1.25%          0%
1-2.....................................................          3%       2.50%       2.50%       2.50%       1.25%       1.25%          0%          0%
2-3.....................................................       2.50%       2.50%          2%       1.25%       1.25%          0%          0%          0%
3-4.....................................................       2.50%       2.50%       1.25%       1.25%          0%          0%          0%          0%
4-5.....................................................       2.50%       1.25%       1.25%          0%          0%          0%          0%          0%
5-6.....................................................       1.25%       1.25%          0%          0%          0%          0%          0%          0%
6-7.....................................................       1.25%          0%          0%          0%          0%          0%          0%          0%
7+......................................................          0%          0%          0%          0%          0%          0%          0%          0%
--------------------------------------------------------------------------------------------------------------------------------------------------------

    27. The withdrawal charges applicable to the JNLNY Contracts differ
from the withdrawal charges applicable to the JNL Contracts. The
withdrawal charges of the JNLNY Contracts are as follows:

                                                                    Withdrawal Charge
                                                          [as a percentage of premium payments]
--------------------------------------------------------------------------------------------------------------------------------------------------------
        Completed years since receipt of premium              0-1         1-2         2-3         3-4         4-5         5-6         6-7         7+
--------------------------------------------------------------------------------------------------------------------------------------------------------
Withdrawal Charge (Base Withdrawal Charge Schedule for            7%          6%          5%          4%          3%          2%          1%           0
 Offerings under File No. 333-70384)....................
Withdrawal Charge (Base Withdrawal Charge Schedule for            7%          6%          5%          4%           0           0           0           0
 Offerings under File No. 333-119659)...................
Withdrawal Charge if Five-Year Period is elected                6.5%          5%          3%          2%          1%           0           0           0
 (Optional Five-Year Withdrawal Charge Schedule for
 Offerings under File No. 333-70384)....................
--------------------------------------------------------------------------------------------------------------------------------------------------------

Applicants' Legal Analysis

    1. Applicants state that Section 6(c) of the Act authorizes the
Commission to exempt any person, security or transaction, or any class
or classes of persons, securities or transactions from the provisions
of the Act and the rules promulgated thereunder if and to the extent
that such exemption is necessary or appropriate in the public interest
and consistent with the protection of investors and the purposes fairly
intended by the policy and provisions of the Act. Applicants request
that the Commission, pursuant to Section 6(c) of the Act, grant the
exemptions requested below with respect to the Contracts and any Future
Contracts funded by the Separate Accounts or Other Accounts that are
issued by the Insurance Companies and underwritten or distributed by
the Distributor or Affiliated Broker-Dealers. Applicants undertake that
Future Contracts funded by the Separate Accounts or Other Accounts, in
the future, will be substantially similar in all material respects to
the Contracts. Applicants believe that the requested exemptions are
appropriate in the public interest and consistent with the protection
of investors and the purposes fairly intended by the policy and
provisions of the Act.
    2. Applicants state that Section 27 of the Act regulates and
imposes certain restrictions on the sales of periodic payment plan
certificates issued by any registered investment company. Subsection
(i) of Section 27 of the Act provides that Section 27 does not apply to
any registered separate account funding variable insurance contracts,
or to the sponsoring insurance company and principal underwriter of
such account, except as provided in paragraph (2) of the subsection.
Paragraph (2) provides that it shall be unlawful for such a separate
account or sponsoring insurance company to sell a contract funded by
the registered separate account unless such contract is a redeemable
security. Section 2(a)(32) defines ``redeemable security'' as any
security, other than short-term paper, under the terms of which the
holder, upon presentation to the issuer, is entitled to receive
approximately his proportionate share of the issuer's current net
assets, or the cash equivalent thereof.
    3. Applicants submit that the recapture of the Contract Enhancement
in the circumstances set forth in the Application would not deprive an
owner of his or her proportionate share of the issuer's current net
assets. A Contract owner's interest in the amount of the Contract
Enhancement allocated to his or her contract value upon the Insurance
Companies' receipt of a premium payment is not fully vested until five
or seven complete years following a premium payment. Until or unless
the amount of any Contract Enhancement is vested, the Insurance
Companies retain the right and interest in the Contract Enhancement
amount, although not in the earnings attributable to that amount. Thus,
Applicants urge that when one of the Insurance Companies recaptures any
Contract Enhancement, it is simply retrieving its own assets, and
because a Contract owner's interest in the Contract Enhancement is not
vested, the Contract owner has not been deprived of a proportionate
share of the Separate Account's assets, i.e., a share of the Separate
Account's assets proportionate to the Contract owner's contract value.
    4. In addition, Applicants represent that it would be patently
unfair to allow a Contract owner exercising the free-look privilege to
retain the Contract Enhancement amount under a Contract that has been
returned for a refund after a period of only a few days. If the
Insurance Companies could not recapture the Contract Enhancement,
individuals could purchase a Contract with no intention of retaining it
and simply return it for a quick profit. Furthermore, Applicants state
that the recapture of the Contract Enhancement relating to withdrawals
and to income payments within the first five or seven contract years is
designed to protect the Insurance Companies against Contract owners not
holding the Contract for a sufficient time period. This recapture of
the Contract Enhancement would provide the Insurance Companies with
sufficient time to recover the cost of the Contract Enhancement and to
avoid the financial detriment that would result from a shorter
recapture period.
    5. Applicants represent that it is not administratively feasible to
track the Contract Enhancement amount in the Separate Accounts after
the Contract Enhancement(s) is applied. Accordingly, the asset-based
charges applicable to the Separate Accounts will be assessed against
the entire amounts held in the Separate Accounts, including any
Contract Enhancement amounts. As a result, the aggregate asset-based
charges assessed will be higher than those that would be charged if the
Contract owner's contract value did not include any Contract
Enhancement.
    6. Applicants submit that the provisions for recapture of any
Contract Enhancement under the Contracts do not violate Sections
2(a)(32) and 27(i)(2)(A) of the Act. Sections 26(e) and 27(i) were
added to the Act to implement the purposes of the National Securities
Markets Improvement Act of 1996 and Congressional intent. The
application of a Contract Enhancement to premium payments made under
the Contracts should not raise any questions as to compliance by the
Insurance Companies with the provisions of

Section 27(i). However, to avoid any uncertainty as to full compliance
with the Act, Applicants request an order providing an exemption from
Sections 2(a)(32) and 27(i)(2)(A), to the extent deemed necessary, to
permit the recapture of the Contract Enhancements under the
circumstances described herein and in the Application, without the loss
of relief from Section 27 provided by Section 27(i).
    7. Applicants state that Section 22(c) of the Act authorizes the
Commission to make rules and regulations applicable to registered
investment companies and to principal underwriters of, and dealers in,
the redeemable securities of any registered investment company to
accomplish the same purposes as contemplated by Section 22(a). Rule
22c-1 under the Act prohibits a registered investment company issuing
any redeemable security, a person designated in such issuer's
prospectus as authorized to consummate transactions in any such
security, and a principal underwriter of, or dealer in, such security,
from selling, redeeming, or repurchasing any such security except at a
price based on the current net asset value of such security which is
next computed after receipt of a tender of such security for redemption
or of an order to purchase or sell such security.
    8. Applicants state that it is possible that someone might view the
Insurance Companies' recapture of the Contract Enhancements as
resulting in the redemption of redeemable securities for a price other
than one based on the current net asset value of the Separate Accounts.
Applicants contend, however, that the recapture of the Contract
Enhancement does not violate Rule 22c-1. The recapture of some or all
of the Contract Enhancement does not involve either of the evils that
Section 22(c) and Rule 22c-1 were intended to eliminate or reduce as
far as reasonably practicable, namely: (i) The dilution of the value of
outstanding redeemable securities of registered investment companies
through their sale at a price below net asset value or repurchase at a
price above it, and (ii) other unfair results, including speculative
trading practices. To effect a recapture of a Contract Enhancement, the
Insurance Companies will redeem interests in a Contract owner's
contract value at a price determined on the basis of the current net
asset value of the JNL and JNLNY Separate Accounts. The amount
recaptured will be less than or equal to the amount of the Contract
Enhancement that the Insurance Companies paid out of its general
account assets. Although Contract owners will be entitled to retain any
investment gains attributable to the Contract Enhancement and to bear
any investment losses attributable to the Contract Enhancement, the
amount of such gains or losses will be determined on the basis of the
current net asset values of the Separate Accounts. Thus, no dilution
will occur upon the recapture of the Contract Enhancement. Applicants
also submit that the second harm that Rule 22c-1 was designed to
address, namely, speculative trading practices calculated to take
advantage of backward pricing, will not occur as a result of the
recapture of the Contract Enhancement. Because neither of the harms
that Rule 22c-1 was meant to address is found in the recapture of the
Contract Enhancement, Rule 22c-1 should not apply to any Contract
Enhancement. However, to avoid any uncertainty as to full compliance
with Rule 22c-1, Applicants request an order granting an exemption from
the provisions of Rule 22c-1 to the extent deemed necessary to permit
them to recapture the Contract Enhancement under the Contracts.
    9. Applicants submit that extending the requested relief to
encompass Future Contracts and Other Accounts is appropriate in the
public interest because it promotes competitiveness in the variable
annuity market by eliminating the need to file redundant exemptive
applications prior to introducing new variable annuity contracts.
Investors would receive no benefit or additional protection by
requiring Applicants to repeatedly seek exemptive relief that would
present no issues under the Act not already addressed in the
Application.
    10. Applicants submit, for the reasons stated herein, that their
exemptive request meets the standards set out in Section 6(c) of the
Act, namely, that the exemptions requested are appropriate in the
public interest and consistent with the protection of investors and the
purposes fairly intended by the policy and provisions of the Act and
that, therefore, the Commission should grant the requested order.

    For the Commission, by the Division of Investment Management,
pursuant to delegated authority.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-8369 Filed 4-12-10; 8:45 am]
BILLING CODE 8011-01-P