Stagecoach Flex - Prudential Annuities

VALUING YOUR INVESTMENTHOW IS MY ACCOUNT VALUE DETERMINED?During the accumulation period, the Annuity has an Account Value. The Account Value is determined separately for each Subaccountallocation and for each Fixed Allocation. The Account Value is the sum of the values of each Sub-account allocation and thevalue of each Fixed Allocation. When determining the Account Value on any day other than a Fixed Allocation's Maturity Date, theAccount Value may include any Market Value Adjustment that would apply to a Fixed Allocation (if withdrawn or transferred) on thatday.WHAT IS THE SURRENDER VALUE OF MY ANNUITY?The Surrender Value of your Annuity is the value available to you on any day during the accumulation period. The Surrender Value isequal to your Account Value minus the Annual Maintenance Fee and the charge for any optional benefits. The Surrender Value willalso include any Market Value Adjustment that may apply.HOW AND WHEN DO YOU VALUE THE SUB-ACCOUNTS?When you allocate Account Value to a Sub-account, you are purchasing units of the Sub-account. Each Sub-account investsexclusively in shares of an underlying Portfolio. The value of the Units fluctuates with the market fluctuations of the Portfolios. Thevalue of the Units also reflects the daily accrual for the Insurance Charge and if you elected one or more optional benefits whoseannual charge is deducted daily, the additional charge made for such benefits. There may be several different Unit Prices for eachSub-account to reflect the Insurance Charge and the charges for any optional benefits. The Unit Price for the Units you purchase willbe based on the total charges for the benefits that apply to your Annuity. See the section entitled "What Happens to My Units WhenThere is a Change in Daily Asset-Based Charges?" for a detailed discussion of how Units are purchased and redeemed to reflectchanges in the daily charges that apply to your Annuity.Each Valuation Day, we determine the price for a Unit of each Sub-account, called the "Unit Price." The Unit Price is used fordetermining the value of transactions involving Units of the Sub-accounts. We determine the number of Units involved in anytransaction by dividing the dollar value of the transaction by the Unit Price of the Sub-account as of the Valuation Day.ExampleAssume you allocate $5,000 to a Sub-account. On the Valuation Day you make the allocation, the Unit Price is $14.83. Your $5,000buys 337.154 Units of the Sub-account. Assume that later, you wish to transfer $3,000 of your Account Value out of that Sub-accountand into another Sub-account. On the Valuation Day you request the transfer, the Unit Price of the original Sub-account has increasedto $16.79. To transfer $3,000, we sell 178.677 Units at the current Unit Price, leaving you 158.477 Units. We then buy $3,000 ofUnits of the new Sub-account at the Unit Price of $17.83. You would then have 168.255 Units of the new Sub-account.HOW DO YOU VALUE FIXED ALLOCATIONS?During the Guarantee Period, we use the concept of an Interim Value. The Interim Value can be calculated on any day and is equal tothe initial value allocated to a Fixed Allocation plus all interest credited to a Fixed Allocation as of the date calculated. The InterimValue does not include the impact of any Market Value Adjustment. If you made any transfers or withdrawals from a FixedAllocation, the Interim Value will reflect the withdrawal of those amounts and any interest credited to those amounts before they werewithdrawn. To determine the Account Value of a Fixed Allocation on any day other than its Maturity Date, we multiply the AccountValue of the Fixed Allocation times the Market Value Adjustment factor.WHEN DO YOU PROCESS AND VALUE TRANSACTIONS?American Skandia is generally open to process financial transactions on those days that the New York Stock Exchange (NYSE) isopen for trading. There may be circumstances where the NYSE does not open on a regularly scheduled date or time or closes at anearlier time than scheduled (normally 4:00 p.m. EST). Financial transactions requested before the close of the NYSE which meet ourrequirements will be processed according to the value next determined following the close of business. Financial transactionsrequested on a non-business day or after the close of the NYSE will be processed based on the value next computed on the nextbusiness day. There may be circumstances when the opening or closing time of the NYSE is different than other major stockexchanges, such as NASDAQ or the American Stock Exchange. Under such circumstances, the closing time of the NYSE will beused when valuing and processing transactions.Contract described herein is no longer available for sale.There may be circumstances where the NYSE is open, however, due to inclement weather, natural disaster or other circumstancesbeyond our control, our offices may be closed or our business processing capabilities may be restricted. Under those circumstances,your Account Value may fluctuate based on changes in the Unit Values, but you may not be able to transfer Account Value, or make apurchase or redemption request.The NYSE is closed on the following nationally recognized holidays: New Year's Day, Martin Luther King, Jr. Day, Presidents' Day,Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving, and Christmas. On those dates, we will not process anyfinancial transactions involving purchase or redemption orders.33