XTra Credit FOUR - Prudential Annuities

the Insurance Charge may include a profit on the portion of the Account Value that represents Credits applied to the Annuity, as wellas profits based on market appreciation of the Sub-account values.The Insurance Charge is not deducted against assets allocated to a Fixed Allocation. However, the amount we credit to FixedAllocations may also reflect similar assumptions about the insurance guarantees provided under the Annuity.Optional Benefits: If you elect to purchase one or more optional benefits, we will deduct an additional charge on a daily basis fromyour Account Value allocated to the Sub-accounts. The charge for each optional benefit is deducted in addition to the InsuranceCharge due to the increased insurance risk associated with the optional benefits. The additional charge is included in the dailycalculation of the Unit Price for each Sub-account. Please refer to the section entitled "Death Benefit" for a description of the chargefor each Optional Death Benefit. Please refer to the section entitled "Managing Your Account Value – Do you offer programsdesigned to guarantee a "return of premium" at a future date?" for a description of the charge for the Guaranteed Return Option.WHAT CHARGES ARE ASSESSED BY THE PORTFOLIOS?We do not assess any charges directly against the Portfolios. However, each Portfolio charges a total annual fee comprised of aninvestment management fee, operating expenses and any distribution and service (12b-1) fees that may apply. These fees arededucted daily by each Portfolio before it provides American Skandia with the net asset value as of the close of business each day.More detailed information about fees and charges can be found in the prospectuses for the Portfolios. Please also see "Service FeesPayable by Underlying Funds".WHAT CHARGES APPLY TO THE FIXED ALLOCATIONS?No specific fee or expenses are deducted when determining the rate we credit to a Fixed Allocation. However, for some of the samereasons that we deduct the Insurance Charge against Account Value allocated to the Sub-accounts, we also take into considerationmortality, expense, administration, profit and other factors in determining the interest rates we credit to Fixed Allocations. Any CDSCor Tax Charge applies to amounts that are taken from the variable investment options or the Fixed Allocations. A Market ValueAdjustment may also apply to transfers, certain withdrawals, surrender or annuitization from a Fixed Allocation.WHAT CHARGES APPLY IF I CHOOSE AN ANNUITY PAYMENT OPTION?In certain states a tax is due if and when you exercise your right to receive periodic annuity payments. The amount payable willdepend on the applicable jurisdiction and on the annuity payment option you select. If you select a fixed payment option, the amountof each fixed payment will depend on the Account Value of your Annuity when you elected to annuitize. There is no specific chargededucted from these payments; however, the amount of each annuity payment reflects assumptions about our insurance expenses. Ifyou select a variable payment option that we may offer, then the amount of your benefits will reflect changes in the value of yourAnnuity and will continue to be subject to an insurance charge.EXCEPTIONS/REDUCTIONS TO FEES AND CHARGESWe may reduce or eliminate certain fees and charges or alter the manner in which the particular fee or charge is deducted. Forexample, we may reduce the amount of the CDSC or the length of time it applies, reduce or eliminate the amount of the AnnualMaintenance Fee or reduce the portion of the total Insurance Charge that is deducted as an Administration Charge. Generally, thesetypes of changes will be based on a reduction to our sales, maintenance or administrative expenses due to the nature of the individualor group purchasing the Annuity. Some of the factors we might consider in making such a decision are: (a) the size and type of group;(b) the number of Annuities purchased by an Owner; (c) the amount of Purchase Payments or likelihood of additional PurchasePayments; and/or (d) other transactions where sales, maintenance or administrative expenses are likely to be reduced. We will notdiscriminate unfairly between Annuity purchasers if and when we reduce the portion of the Insurance Charge attributed to the chargecovering administrative costs.PURCHASING YOUR ANNUITYWHAT ARE OUR REQUIREMENTS FOR PURCHASING THE ANNUITY?Contract described herein is no longer available for sale.Initial Purchase Payment: You must make a minimum initial Purchase Payment of $1,000. However, if you decide to makepayments under a systematic investment or "bank drafting" program, we will accept a lower initial Purchase Payment provided that,within the first Annuity Year, you make at least $1,000 in total Purchase Payments.Where allowed by law, initial Purchase Payments in excess of $1,000,000 require our approval prior to acceptance. We may applycertain limitations and/or restrictions on the Annuity as a condition of our acceptance, including limiting the liquidity features or theDeath Benefit protection provided under the Annuity, limiting the right to make additional Purchase Payments, changing the numberof transfers allowable under the Annuity or restricting the Sub-accounts that are available. Other limitations and/or restrictions mayapply.28