High Five Prospectus 050108

Allianz High Five Variable Annuity Prospectus
Allianz Life Insurance Company of North America
Allianz High Five
May 1, 2008 Prospectus

A flexible-payment variable annuity:
Allianz Life Variable Account B
HFV-001
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THE ALLIANZ HIGH FIVETM VARIABLE ANNUITY CONTRACT

ISSUED BY
ALLIANZ LIFE VARIABLE ACCOUNT B
AND
ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
For your convenience we have provided a glossary (see section 13) that defines key, capitalized terms that are used in
this prospectus.
This prospectus describes an individual flexible purchase payment variable deferred annuity contract (Contract) issued by
Allianz Life Insurance Company of North America (Allianz Life, we, us, our).
The Contract is a flexible purchase payment contract because you (the Owner) can make more than one Purchase
Payment, subject to certain restrictions. The Contract is variable because the Contract Value and any variable Annuity
Payments you receive will increase or decrease depending on the performance of the Investment Options you select (in
this prospectus, the term Investment Options refers only to the variable Investment Choices listed on the following
page, and not to any fixed Investment Choices). The Contract is deferred because you do not have to begin receiving
regular Annuity Payments immediately.
Additional information about the Separate Account has been filed with the Securities and Exchange Commission (SEC)
and is available upon written or oral request without charge. A Statement of Additional Information (SAI) dated the same
date as this prospectus includes additional information about the annuity offered by this prospectus. The SAI is
incorporated by reference into this prospectus. The SAI is filed with the SEC and is available without charge by
contacting us at the telephone number or address listed at the back of this prospectus. The table of contents of the SAI
appears before the Privacy and Security Statement in this prospectus. The SEC also maintains a website
(http://www.sec.gov). The prospectus, the SAI and other information about the Contract are available on the EDGAR
database on the SECs website.
Please read this prospectus before investing and keep it for future reference. It contains important information about your
annuity and Allianz Life that you ought to know before investing. This prospectus is not an offering in any state, country,
or jurisdiction in which we are not authorized to sell the Contracts. You should rely only on the information contained in
this prospectus. We have not authorized anyone to provide you with information that is different.
The SEC has not approved or disapproved these securities or determined if this prospectus is truthful or complete.
Any representation to the contrary is a criminal offense.
An investment in this Contract is not a deposit of a bank or financial institution and is not federally insured or
guaranteed by the Federal Deposit Insurance Corporation or any other federal government agency. An investment
in this Contract involves investment risk including the possible loss of principal.
Variable annuity contracts are complex insurance and investment vehicles. Before you invest, be sure to ask your
registered representative about the Contracts features, benefits, risks and fees, and whether the Contract is
appropriate for you based upon your financial situation and objectives.
Dated: May 1, 2008
The Allianz High FiveTM Variable Annuity Contract Prospectus May 1, 2008
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This prospectus offers two versions of the same Contract. The product features and expenses of the Original Contract and
the February 2007 Contract differ in certain respects as set out in this prospectus. The Original Contract first became
available on September 20, 2002 and was replaced in all states except Washington by the February 2007 Contract. Only
one version of the Contract is offered in each state. This prospectus is written according to the features of the February
2007 Contract that is currently offered for sale in all states except Washington. However, the Original Contract is still
available in the state of Washington and Owners who previously purchased an Original Contract can still make additional
Purchase Payments. Therefore, we are including information on the different product features and expenses for the
Original Contract in Appendix F of this prospectus. Information regarding the product features and expenses of the May
2005 Contract that is no longer offered can be found in the SAI.
We currently offer the Investment Options listed on the following page. You can invest in up to 15 Investment Options at
any one time. Currently, the only fixed Investment Choices we offer under our general account are the Fixed Period
Accounts (FPAs). You can only allocate up to 50% of any Purchase Payment to the FPAs. However, if your Contract
includes the Living Guarantees we will make transfers to and from the FPAs to support these guarantees and we may
transfer more than 50% of the total Purchase Payments to the FPAs beginning on the second Contract Anniversary. One
or more of the Investment Choices may not be available in your state. We may add, substitute or remove Investment
Choices in the future.
Contracts with the Guaranteed Account Value (GAV) Benefit are subject to systematic transfers between your
selected Investment Options and the FPAs. This means that you may not always be able to fully participate in any
upside potential returns available from the Investment Options and your Contract Value may potentially be less
than the Contract Value you would have had without the GAV Benefit. Transfers out of the FPAs may be subject
to a Market Value Adjustment that may increase or decrease your Contract Value and/or the amount of the
transfer.
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INVESTMENT OPTIONS AVAILABLE UNDER THE CONTRACT

AIM PIMCO
Franklin U.S. Government Fund
AZL AIM International Equity Fund AZL PIMCO Fundamental IndexPLUS
Franklin Zero Coupon Fund 2010
Mutual Discovery Securities Fund Total Return Fund
BLACKROCK PIMCO VIT All Asset Portfolio

AZL Money Market Fund Mutual Shares Securities Fund
PIMCO VIT CommodityRealReturnTM
BlackRock Global Allocation V.I. Fund Templeton Developing Markets Securities Fund(3)
Templeton Foreign Securities Fund Strategy Portfolio
CLEARBRIDGE PIMCO VIT Emerging Markets Bond Portfolio
Templeton Global Income Securities Fund

AZL LMP Large Cap Growth Fund PIMCO VIT Global Bond Portfolio (Unhedged)
Templeton Growth Securities Fund
PIMCO VIT High Yield Portfolio
COLUMBIA FUSION PORTFOLIOS PIMCO VIT Real Return Portfolio

AZL Columbia Technology Fund
AZL Fusion Balanced Fund

PIMCO VIT StocksPLUS Growth and

DAVIS AZL Fusion Growth Fund Income Portfolio

AZL Fusion Moderate Fund PIMCO VIT Total Return Portfolio
AZL Davis NY Venture Fund
Davis VA Financial Portfolio JENNISON PRUDENTIAL
Davis VA Value Portfolio(1)
AZL Jennison 20/20 Focus Fund SP International Growth Portfolio

AZL Jennison Growth Fund SP Strategic Partners Focused Growth Portfolio
DREYFUS
Jennison 20/20 Focus Portfolio(3)
AZL Dreyfus Founders Equity Growth Fund SCHRODER

AZL Dreyfus Premier Small Cap Value Fund LEGG MASON

AZL Schroder Emerging Markets Equity Fund

AZL S&P 500 Index Fund
AZL Legg Mason Growth Fund

AZL Schroder International Small Cap Fund

AZL Small Cap Stock Index Fund
AZL Legg Mason Value Fund
Dreyfus IP Small Cap Stock Index Portfolio(3) SELIGMAN
Dreyfus Stock Index Fund, Inc. (3) NEUBERGER BERMAN Seligman Smaller-Cap Value Portfolio(1)

AZL Neuberger Berman Regency Fund
FIRST TRUST TARGETPLUS PORTFOLIOS

AZL First Trust Target Double Play Fund NICHOLAS-APPLEGATE AZL TargetPLUSSM Balanced Fund

AZL NACM International Fund AZL TargetPLUSSM Equity Fund
FRANKLIN TEMPLETON AZL TargetPLUSSM Growth Fund

AZL Franklin Small Cap Value Fund OPPENHEIMER CAPITAL
AZL TargetPLUSSM Moderate Fund
Franklin Global Communications Securities Fund AZL OCC Opportunity Fund

Franklin Global Real Estate Securities Fund AZL OCC Value Fund TURNER

Franklin Growth and Income Securities Fund OpCap Mid Cap Portfolio(4) AZL Turner Quantitative Small Cap Growth Fund
Franklin High Income Securities Fund
OPPENHEIMER FUNDS VAN KAMPEN
Franklin Income Securities Fund
AZL Oppenheimer Global Fund AZL Van Kampen Comstock Fund
Franklin Large Cap Growth Securities Fund
AZL Oppenheimer International Growth Fund

AZL Van Kampen Equity and Income Fund
Franklin Rising Dividends Securities Fund
AZL Oppenheimer Main Street Fund AZL Van Kampen Global Franchise Fund
Franklin Small-Mid Cap Growth Securities Fund
Oppenheimer Global Securities Fund/VA(1) AZL Van Kampen Global Real Estate Fund
Franklin Small Cap Value Securities Fund(2) Oppenheimer High Income Fund/VA

AZL Van Kampen Growth and Income Fund
Franklin Templeton VIP Founding Funds
Oppenheimer Main Street Fund /VA(1) AZL Van Kampen Mid Cap Growth Fund
Allocation Fund
(1) The Investment Option is available for additional Purchase Payments and/or transfers only to Owners with Contract Value in the Investment Option
on April 30, 2004.
(2) The Franklin Small Cap Value Securities Fund is available for additional Purchase Payments and/or transfers only to Owners with Contract Value
in this Investment Option on April 29, 2005.
(3) We have filed an exemptive order application with the SEC requesting the following substitutions. If the order is issued, the shares of the
replacement Investment Options will be exchanged for the replaced Investment Options, and shares of the replaced Investment Options will no
longer be available through the Contracts. It is currently anticipated that if the SEC grants the relief requested, the substitutions will occur in 2008.
Replacement Investment Option Replaced Investment Option
AZL Jennison 20/20 Focus Fund Jennison 20/20 Focus Portfolio
AZL S&P 500 Index Fund Dreyfus Stock Index Fund, Inc.
AZL Small Cap Stock Index Fund Dreyfus IP Small Cap Stock Index Portfolio
AZL Schroder Emerging Markets Equity Fund Templeton Developing Markets Securities Fund
(4) A fund of the Premier VIT series.
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TABLE OF CONTENTS
Fee Tables.............................................................................6 7. Expenses ......................................................................46
Contract Owner Transaction Expenses ...........................6 Mortality and Expense Risk (M&E) Charges .................46
Contract Owner Periodic Expenses .................................7 Contract Maintenance Charge.......................................47
Annual Operating Expenses of the Investment Options ..7 Withdrawal Charge ........................................................47
Examples .........................................................................8 Transfer Fee ..................................................................49
1. The Variable Annuity Contract......................................9 Premium Taxes..............................................................50
Ownership......................................................................10 Income Taxes ................................................................50
Investment Option Expenses.........................................50
2. The Annuity Phase.......................................................11
Income Date...................................................................11 8. Taxes.............................................................................50
Partial Annuitization .......................................................12 Annuity Contracts in General.........................................50
Annuity Options..............................................................12 Qualified Contracts ........................................................50
Traditional Annuity Payments ........................................14 Multiple Contracts ..........................................................52
Guaranteed Minimum Income Benefit (GMIB)...............16 Partial 1035 Exchanges.................................................52
Taxation of GMIB Payments ..........................................17 Distributions Non-Qualified Contracts.........................52
Amount Used To Calculate GMIB Payments.................17 Distributions Qualified Contracts ................................53
GMIB Value....................................................................17 Assignments, Pledges and Gratuitous Transfers ..........54
GMIB Adjusted Partial Withdrawals ...............................18 Death Benefits ...............................................................54
Withholding ....................................................................54
3. Purchase.......................................................................19 Federal Estate Taxes.....................................................54
Purchase Payments.......................................................19 Generation-Skipping Transfer Tax.................................55
Automatic Investment Plan (AIP) ...................................19 Foreign Tax Credits .......................................................55
Allocation of Purchase Payments ..................................19 Annuity Purchases by Nonresident Aliens and
Tax-Free Section 1035 Exchanges................................20 Foreign Corporations...............................................55
Faxed Applications.........................................................20 Possible Tax Law Changes ...........................................55
Free Look/Right to Examine...........................................21 Diversification ................................................................55
Accumulation Units/Computing the Contract Value .......21 Required Distributions ...................................................55
4. Investment Options......................................................22 9. Access to Your Money ................................................56
Substitution and Limitation on Further Investments.......30 Partial Withdrawal Privilege ...........................................57
Transfers........................................................................30 Waiver of Withdrawal Charge Benefits ..........................57
Excessive Trading and Market Timing...........................31 Guaranteed Withdrawal Benefit (GWB).........................57
Dollar Cost Averaging (DCA) Program ..........................33 Systematic Withdrawal Program....................................59
Flexible Rebalancing......................................................34 The Minimum Distribution Program and Required
Financial Advisers Asset Allocation Programs............34 Minimum Distribution (RMD) Payments ..................60
Voting Privileges ............................................................34 Suspension of Payments or Transfers...........................60
5. Our General Account...................................................35 10. Illustrations ..................................................................60
Fixed Period Accounts (FPAs).......................................35
Market Value Adjustment (MVA)....................................37 11. Death Benefit................................................................61
Traditional Guaranteed Minimum Death Benefit
6. Guaranteed Account Value (GAV) Benefit.................40 (Traditional GMDB)..................................................61
Calculating the GAV.......................................................41 Enhanced Guaranteed Minimum Death Benefit
GAV Transfers ...............................................................43 (Enhanced GMDB) ..................................................61
The GAV Fixed Account Minimum.................................45 GMDB Adjusted Partial Withdrawal Formula.................62
Resetting the GAV Benefit .............................................45 Termination of the Death Benefit ...................................62
Other Information on the GAV Benefit ...........................46 Death of the Owner Under Inherited IRA Contracts ......63
Death of the Owner and/or Annuitant Under
All Other Contracts ..................................................63
Death Benefit Payment Options ....................................66
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12. Other Information ........................................................ 67 Appendix A Annual Operating Expenses for Each
Allianz Life ..................................................................... 67 Investment Option....................................................... 76
The Separate Account................................................... 67 Appendix B Condensed Financial Information............ 81
Distribution..................................................................... 67 Appendix C GMIB Value Calculation Examples........... 85
Additional Credits for Certain Groups............................ 68
Administration/Allianz Service Center ........................... 69 Appendix D GAV Calculation Example......................... 86
Legal Proceedings......................................................... 69 Appendix E Death Benefit Calculation Examples........ 88
Financial Statements ..................................................... 69 Appendix F The Original Contract ................................ 90
13. Glossary ....................................................................... 70 Appendix G Withdrawal Charge Examples .................. 93
14. Table of Contents of the Statement of For Service or More Information ...................................... 95
Additional Information (SAI)....................................... 73
15. Privacy and Security Statement................................. 74
The following is a list of common abbreviations used in this prospectus:

FPA = Fixed Period Account GWB = Guaranteed Withdrawal Benefit
GAV = Guaranteed Account Value MAV = Maximum Anniversary Value
GMDB = Guaranteed Minimum Death Benefit MVA = Market Value Adjustment
GMIB = Guaranteed Minimum Income Benefit
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FEE TABLES
The following tables describe the fees and expenses that you will pay when purchasing, owning and taking a withdrawal
from the Contract. For more information, see section 7, Expenses.
The first tables describe the fees and expenses that you will pay if you take a withdrawal from the Contract during the
Accumulation Phase, or if you make transfers.
C O N TR A C T O WN ER T R A N SA C T I ON EX P ENSE S (1)
Withdrawal Charge During the Accumulation Phase(2),(3)
(as a percentage of each Purchase Payment withdrawn)
Number of Complete Years
Since We Received Your
Purchase Payment Charge
0 8%
1 8%(4)
2 7%
3 6%
4 5%
5 4%
6 3%
7 years or more 0%
Transfer Fee(5) ............................................................................... $25

Premium Taxes(6) ..............................................................0% to 3.5%
(as a percentage of each Purchase Payment)
(1) Amounts withdrawn or transferred out of a FPA may be subject to an MVA. This MVA may increase or decrease your Contract Value and/or your
transfer or withdrawal amount. For more information, please see section 5, Our General Account Market Value Adjustment (MVA).
(2) The partial withdrawal privilege for each Contract Year is equal to 12% of your total Purchase Payments, less the total amount previously
withdrawn under the partial withdrawal privilege in the same Contract Year, and before any MVA. We will not deduct a withdrawal charge from
amounts withdrawn under the partial withdrawal privilege, but an MVA may apply. There is no partial withdrawal privilege during the Annuity
Phase. Any unused partial withdrawal privilege in one Contract Year does not carry over to the next Contract Year. For more details and additional
information on other penalty-free withdrawal options, please see the discussion of the partial withdrawal privilege and other information that
appears in section 9, Access to Your Money.
(3) The total amount under your Contract that is subject to a withdrawal charge is the Withdrawal Charge Basis. The Withdrawal Charge Basis is equal
to the total Purchase Payments, less any Purchase Payments withdrawn (excluding any penalty-free withdrawals), less any withdrawal charges.
(4) 7.5% in Alabama, Oregon, Pennsylvania, Utah and Washington.
(5) The first twelve transfers in a Contract Year are free. Dollar cost averaging transfers, flexible rebalancing transfers, and GAV Transfers do not
count against any free transfers we allow. Currently, we deduct this fee only during the Accumulation Phase, but we reserve the right to deduct this
fee during the Annuity Phase. For more information, please see section 7, Expenses Transfer Fee.
(6) It is our current practice not to make deductions from the Contract to reimburse ourselves for premium taxes that we pay until the earliest of: the
Income Date that you take a Full Annuitization, the date of full withdrawal, or full distribution of the death benefit. We do not make deductions to
reimburse ourselves for premium taxes that we pay from amounts applied to GMIB Payments. This charge varies by state. For more information,
please see section 7, Expenses Premium Taxes.
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C O N TR A CT OWN ER PE R I OD I C E X P EN SES
The next tables describe the fees and expenses that you will pay periodically during the time that you own your Contract,
not including the Investment Options fees and expenses. The Separate Account annual expenses include the mortality
and expense risk (M&E) charges.
During the Accumulation Phase:
Contract Maintenance Charge(7) ..................................................$40
(per Contract per year)
Separate Account Annual Expenses
(as a percentage of average daily assets invested in a subaccount on an annual basis)
M&E Charges
February 2007 Contract
and
Original Contract issued
on or after June 22, 2007
Traditional GMDB 1.25%
Enhanced GMDB(8) 1.45%
During the Annuity Phase:

Contract Maintenance Charge(9) ..................................................$40
(per Contract per year)
Separate Account Annual Expenses if you request variable Traditional Annuity Payments
M&E Charges(10)
February 2007 Contract and Original Contract issued on or after June 22, 2007 1.25%
(7) We waive the contract maintenance charge if the Contract Value is at least $75,000 at the time we are to deduct the charge. If the total Contract
Value of all your Contracts that are registered with the same social security number is at least $75,000, the charge is waived on all your Contracts.
For more information, please see section 7, Expenses Contract Maintenance Charge.
(8) The Enhanced GMDB may not be available in all states; check with your registered representative. For more information, please see section 11,
Death Benefit.
(9) We waive the contract maintenance charge during the Annuity Phase if your Contract Value on the Income Date is at least $75,000. For more
information, please see section 7, Expenses Contract Maintenance Charge.
(10) Because the Contract allows Partial Annuitization, it is possible for different portions of the Contract to be in both the Accumulation and Annuity
Phases at the same time. It is also possible to have different M&E charges on different portions of the Contract at the same time if you request
variable Traditional Annuity Payments under a Partial Annuitization. For more information, please see section 2, The Annuity Phase Partial
Annuitization.
A NNUA L O PERA TING EXPEN SES OF TH E IN VESTMENT O PT ION S

This table describes the total annual operating expenses associated with the Investment Options and shows the minimum
and maximum expenses for the period ended December 31, 2007, charged by any of the Investment Options before the
effect of any contractual expense reimbursement or fee waiver. We show the expenses as a percentage of an Investment
Options average daily net assets.
Minimum Maximum
Total annual Investment Option operating expenses*
(including management fees, distribution or 12b-1 fees,
and other expenses) before fee waivers and expense reimbursements 0.52% 1.96%
* Some of the Investment Options or their affiliates may also pay service fees to us or our affiliates. The amount of these fees may be different for
each Investment Option. The maximum current fee is 0.25%. The amount of these fees, if deducted from Investment Option assets, is reflected in
the above table and is disclosed in Appendix A. Appendix A also contains more details regarding the annual operating expenses for each of the
Investment Options, including the amount and effect of any waivers and/or reimbursements.
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E X A M PL E S
The expenses for your Contract may be different from those shown in the examples below depending upon which
Investment Option(s) you select and the benefits that apply.
These examples are intended to help you compare the cost of investing in a Contract with the cost of investing in other
variable annuity contracts. These costs include Contract Owner transaction expenses, Contract Owner periodic expenses,
and the annual operating expenses of the Investment Options before the effect of reimbursements and waivers.
You should not consider the examples below as a representation of past or future expenses. Actual expenses may be
greater or less than those shown.
The $40 contract maintenance charge is included in the examples as a charge of 0.051% of the average daily assets
invested in a subaccount for the most recent calendar year based on the total charges collected under the Contract divided
by the total average net assets for the Contract. Please note that this is an average and some Owners may pay more or less
than the average.
Transfer fees and deductions we make to reimburse ourselves for premium taxes that we pay may apply, but are not
reflected in these examples.
For additional information, see section 7, Expenses.
If you take a full withdrawal at the end of each time period, and assuming a $10,000 investment and a 5% annual return
on your money, you may pay expenses as follows.
a) February 2007 Contract and Original Contract issued on or after June 22, 2007 with the Enhanced GMDB
(the highest M&E charge of 1.45%).
b) February 2007 Contract and Original Contract issued on or after June 22, 2007 with the Traditional GMDB
(the lowest M&E charge of 1.25%).
Total annual Investment Option operating expenses
before any fee waivers or expense reimbursements of: 1 Year 3 Years 5 Years 10 Years
a) $1,149 a) $1,763 a) $2,300 a) $3,745
1.96% (the maximum Investment Option operating expense)
b) $1,129 b) $1,704 b) $2,204 b) $3,563
a) $1,005 a) $1,334 a) $1,588 a) $2,347
0.52% (the minimum Investment Option operating expense)
b) $ 985 b) $1,272 b) $1,485 b) $2,135
In Alabama, Oregon, Pennsylvania, Utah and Washington, the lower withdrawal charge would result in slightly lower
expense examples.
If you do not take a full withdrawal or if you take a Full Annuitization* of the Contract at the end of each time period, and
assuming a $10,000 investment and a 5% annual return on your money, you may pay expenses as follows.
Total annual Investment Option operating expenses
before any fee waivers or expense reimbursements of: 1 Year 3 Years 5 Years 10 Years
a) $ 349 a) $1,063 a) $1,800 a) $3,745
1.96% (the maximum Investment Option operating expense)
b) $ 329 b) $1,004 b) $1,704 b) $3,563
a) $ 205 a) $ 634 a) $1,088 a) $2,347
0.52% (the minimum Investment Option operating expense)
b) $ 185 b) $ 572 b) $ 985 b) $2,135
* Traditional Annuity Payments are generally not available until after the second Contract Anniversary in most states, and GMIB Payments are not
available until the fifth Contract Anniversary.
See Appendix B for condensed financial information regarding the Accumulation Unit values (AUVs) for the highest and
lowest M&E charges for the February 2007 Contract and Original Contract issued on or after June 22, 2007. See the
appendix to the Statement of Additional Information for condensed financial information regarding the AUVs for older
Contracts we no longer offer.
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1. THE VARIABLE ANNUITY CONTRACT

An annuity is a contract between you (the Owner), and an insurance company (in this case Allianz Life), where you make
payments to us and, in turn, we promise to make regular periodic income payments (Annuity Payments) to the Payee.
The Contract is tax deferred. You generally are not taxed on any earnings or appreciation on the assets in your Contract
until you take money out of your Contract. For Qualified Contracts, the tax deferral is provided through compliance
with specialized tax-qualification rules, and you do not receive any additional tax benefit by purchasing the
Contract. However, the Contract may offer other features that meet your needs. Accordingly, if you are
purchasing a Qualified Contract, you should consider purchasing this Contract for its death benefit, annuity
benefits and other non-tax deferral related benefits. Please consult a tax adviser for information specific to your
circumstances to determine whether a Qualified Contract is an appropriate investment for you.
The Contract has an Accumulation Phase and an Annuity Phase. You can take withdrawals from the Contract during the
Accumulation Phase and, subject to certain restrictions, you can make additional Purchase Payments.
The Accumulation Phase begins on the Issue Date and ends upon the earliest of the following.
The Business Day before the Income Date if you take a Full Annuitization.
The Business Day we process your request for a full withdrawal.
Upon the death of any Owner (or the Annuitant if the Contract is owned by a non-individual), it will terminate on the
Business Day we receive in good order at our Service Center, both due proof of death and an election of the death
benefit payment option, unless the spouse of the deceased continues the Contract.
The Annuity Phase is the period during which we will make Annuity Payments from the Contract. Under all Contracts,
Traditional Annuity Payments are available during the Annuity Phase. Traditional Annuity Payments must begin on a
designated date (the Income Date) that is at least two years after your Issue Date. For Contracts with a GMIB, you can
request fixed Annuity Payments (GMIB Payments) beginning on the fifth Contract Anniversary. If you apply the entire
Contract Value to Annuity Payments, we call that a Full Annuitization, and if you apply only part of the Contract Value
to Annuity Payments, we call that a Partial Annuitization.* The maximum number of annuitizations you can have at any
one time is five. Because the Contract allows Partial Annuitization, it is possible for different portions of the Contract to
be in both the Accumulation and Annuity Phases at the same time. The Annuity Phase begins on the Income Date (or the
first Income Date if you take any Partial Annuitizations) and ends when all portion(s) of the Contract that you apply to
Annuity Payments have terminated, as indicated in section 2, The Annuity Phase.
* GMIB Partial Annuitizations are based on the GMIB value and are not available until the fifth Contract Anniversary and they are not available if
the GMIB value is less than the Contract Value.
Your Investment Choices include the Investment Options and any available general account Investment Choice. You
cannot invest in more than 15 Investment Options at any one time. Depending upon market conditions, you can gain or
lose value in the Contract based on the investment performance of the Investment Options. The Investment Options are
designed to offer the opportunity for a better return than any available general account Investment Choice; however, this
is not guaranteed. The amount of Contract Value you are able to accumulate in your Contract during the Accumulation
Phase and the amount of any variable Annuity Payments we make during the Annuity Phase depends in large part upon
the investment performance of any Investment Options you select.
The only general account Investment Choices available during the Accumulation Phase are the Fixed Period Accounts
(FPAs). You can allocate up to 50% of any Purchase Payment to the FPAs during the Accumulation Phase. However, in
some states, the FPAs may only be available for GAV Transfers we make if your Contract includes the Living
Guarantees. In addition, we may transfer more than 50% of the total Purchase Payments to the FPAs beginning on the
second Contract Anniversary in order to support the Living Guarantees. The FPAs have Account Periods ranging from
one to ten years. Only one FPA is available for Purchase Payments or transfers in each Contract Year. Amounts allocated
to the FPAs earn interest that we declare periodically. If you have money invested in the FPAs, the amount of Contract
Value you are able to accumulate in your Contract during the Accumulation Phase will depend in part upon the total
interest credited to your Contract. Withdrawals or transfers from the FPAs may be subject to a Market Value Adjustment.
For more information, please see section 5, Our General Account Market Value Adjustment (MVA).
We will not make any changes to your Contract without your permission except as may be required by law.
10
The Contract will terminate when:

the Accumulation Phase has terminated,
the Annuity Phase has terminated, and/or
all applicable death benefit payments have been made.
State Specific Contract Restrictions
If you purchase a Contract, it will be subject to the law of the state in which it is issued. Some of the terms of your
Contract may differ from the terms of a Contract delivered in another state because of state-specific legal requirements.
Areas in which there may be state-specific Contract provisions may include the following.
The withdrawal charge schedule.
Availability of Investment Options, Annuity Options, DCA programs, endorsements, and/or riders.
Free look rights.
Selection of certain Income Dates.
Restrictions on your ability to make additional Purchase Payments.
Deductions we make to reimburse ourselves for premium taxes that we pay.
Selection of certain assumed investment rates for variable Annuity Payments.
Our ability to restrict transfer rights.
If you would like information regarding state-specific Contract provisions, you should contact your registered
representative or contact our Service Center at the toll free number listed at the back of this prospectus.
O WN ER SH I P
Owner
You, as the Owner, have all the rights under the Contract. The Owner is designated at Contract issue. You can change
Owners at any time subject to our approval. However, Qualified Contracts can only have one Owner and there may be
Internal Revenue Service (IRS) or other restrictions on changing the ownership of a Qualified Contract. Upon our
approval, any change will become effective as of the date you sign the request. Changing ownership may be a taxable
event. You should consult with your tax adviser before doing this.
Joint Owner
A Non-Qualified Contract can be owned by up to two Owners. Upon the death of either Joint Owner, the surviving Joint
Owner will become the primary Beneficiary. We will then treat any other Beneficiary designation on record at the time of
death as a contingent Beneficiary. You can change Joint Owners under the same conditions as described for an Owner. If
a Contract has Joint Owners, we require the signature of both Owners on any forms that are submitted to our Service
Center, unless we allow otherwise.
NOTE FOR PARTIAL ANNUITIZATIONS: Partial Annuitizations are not available to Joint Owners. There can be only
one Owner, the Owner must be the Annuitant, and we will not allow the Owner to add a joint Annuitant.
Annuitant
The Annuitant is the individual on whose life we base Annuity Payments. Subject to our approval, you designate an
Annuitant and you can add a joint Annuitant for the Annuity Phase if you take a Full Annuitization. You may change the
Annuitant at any time before the Income Date unless the Contract is owned by a non-individual (for example, a qualified
plan or trust). You cannot change the Annuitant if the Contract is owned by a non-individual, but you can add a joint
Annuitant (subject to our approval) for the Annuity Phase if you take a Full Annuitization. For Qualified Contracts, the
Owner must be the Annuitant unless the Contract is owned by a qualified plan or is part of a custodial arrangement.
Designating different persons as Owner(s) and Annuitant(s) can have important impacts on whether a death
benefit is paid, and on who would receive it. Use care when designating Owners and Annuitants, and consult your
registered representative if you have questions.
Payee
The Payee is the person or entity you designate (subject to our approval) to receive Annuity Payments during the Annuity
Phase. The Owner will receive tax reporting on those payments. For Non-Qualified Contracts, an Owner or Annuitant can
be the Payee, but it is not required. For Qualified Contracts owned by a qualified plan, the qualified plan must be the
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Payee. For all other Qualified Contracts, the Owner is not required to be the Payee, but the Owner cannot transfer or
assign his or her rights under the Contract to someone else. If you do not designate a Payee by the Income Date, we will
make Annuity Payments to the Owner unless the Contract is a Qualified Contract owned by a qualified plan. The Owner
can change the Payee at any time, subject to our approval, provided that designation of a Payee is consistent with federal
and state laws and regulations.
Beneficiary
The Beneficiary is the person(s) or entity you designate at Contract issue to receive any death benefit. You can change the
Beneficiary or contingent Beneficiary at any time before your death unless you name an irrevocable Beneficiary. If you
do not designate a Beneficiary, any death benefit will be paid to your estate.
NOTE FOR JOINT OWNERS: For jointly owned Contracts, the sole primary Beneficiary will be the surviving Joint
Owner. For Contracts that are jointly owned by spouses, if both spousal Joint Owners die before we pay the death benefit,
we will pay the death benefit to the contingent Beneficiaries, or to the estate of the Joint Owner who died last if there are
no named contingent Beneficiaries. However, for tax reasons, if the Joint Owners were not spouses and both Joint Owners
die before we pay the death benefit, we will pay the death benefit to the estate of the Joint Owner who died last.
Assignment of a Contract
An authorized request specifying the terms of an assignment of a Contract must be provided to our Service Center and
approved by us. We will not be liable for any payment made or action taken before we record the assignment. An
assignment may be a taxable event. We will not be responsible for the validity or tax consequences of any assignment.
After the death benefit has become payable, an assignment can only be made with our consent. If the Contract is assigned,
your rights may only be exercised with the consent of the assignee of record. Qualified Contracts generally cannot be
assigned.
2. THE ANNUITY PHASE

You can apply your Contract Value to regular periodic income payments (Annuity Payments). A Full Annuitization
occurs when you apply the entire Contract Value to Annuity Payments. A Partial Annuitization occurs when you apply
only part of your Contract Value to Annuity Payments.* The Payee will receive the Annuity Payments. You will receive
tax reporting on those payments, however, whether or not you are the Payee. We may require proof of the Annuitant(s)
age before making any life contingent Annuity Payment. If the age or sex of the Annuitant(s) have been misstated, the
amount payable will be the amount that would have been provided at the true age or sex.
* GMIB Partial Annuitizations are based on the GMIB value and are not available until the fifth Contract Anniversary and they are not available if
the GMIB value is less than the Contract Value.
NOTE: You will be required to take a Full Annuitization of your Contract on or before the maximum permitted
Income Date. At our discretion, we may extend the maximum permitted Income Date subject to the requirements of
applicable law. The maximum permitted Income Date may vary depending on the broker/dealer you purchase your
Contract through and your state of residence. Upon Full Annuitization you will no longer have a Contract Value, any
periodic withdrawal or income payments (other than Annuity Payments) will stop, and the death benefit will
terminate. In addition, if your Contract includes the Living Guarantees, the FPAs and the Guaranteed
Withdrawal Benefit will no longer be available to you and you will no longer receive any True Ups.
INCO ME DAT E
The Income Date is the date Annuity Payments (GMIB Payments or Traditional Annuity Payments) will begin. Your
Income Date is specified in your Contract as the maximum permitted date allowed for your Contract, which is the first
day of the calendar month following the later of: a) the Annuitants 90th birthday, or b) ten years from the Issue Date.
This limitation may not apply when the Contract is issued to a charitable remainder trust. You can make an authorized
request for a different Income Date after the Issue Date, however, any such request is subject to our approval. Your
Income Date must be the first day of a calendar month and must be at least two years after the Issue Date. Some states
may require us to allow you to select an earlier Income Date. The Income Date will never be later than what is permitted
under applicable law. To receive the annuity income protection of the GMIB, your Income Date must be within 30 days
following a Contract Anniversary beginning with the fifth Contract Anniversary (and certain other conditions must also
be met). An earlier Income Date may be required to satisfy minimum required distribution rules under certain Qualified
Contracts.
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Your election to start Annuity Payments may involve an MVA if any of your Contract Value is in a FPA on the Income
Date.
PAR TIAL ANN UIT IZ ATION
Partial Annuitizations are not available to everyone. There can be only one Owner, the Owner must be the
Annuitant, and we will not allow the Owner to add a joint Annuitant.
You can take Partial Annuitizations as Traditional Annuity Payments after the second Contract Anniversary, and/or as
GMIB Payments beginning on the fifth Contract Anniversary. GMIB Partial Annuitizations are only available if the
GMIB value is greater than the Contract Value. Partial Annuitizations are not available after you take a Full
Annuitization. If you take a Full Annuitization, the Accumulation Phase of the Contract will end.
You can take one Partial Annuitization every 12 months. The maximum number of annuitizations we allow at any one
time is five. We do not allow you to allocate additional Contract Value (or GMIB value) to an existing stream of Annuity
Payments. You also cannot transfer any amounts allocated to a stream of Annuity Payments to any other portion of the
Contract. If you have four Partial Annuitizations and you would like to take a fifth, you must take a Full Annuitization
and apply the entire remaining Contract Value to Annuity Payments, and the Accumulation Phase of the Contract will
end. The amounts you apply to a Partial Annuitization and Annuity Payments we make under a Partial Annuitization are
not subject to the withdrawal charge.
A Partial Annuitization will decrease the Contract Value, the Withdrawal Charge Basis, the GMDB value, and for
Contracts with the Living Guarantees, it will also decrease the GAV and GMIB value. This will decrease the amounts
available for withdrawals, additional Annuity Payments (including GMIB Payments), and payment of the death benefit.
The type of Annuity Payments (traditional or GMIB) you request under a Partial Annuitization will reduce the GAV,
GMIB and GMDB values differently. For more information, see section 2, The Annuity Phase GMIB Adjusted Partial
Withdrawals; section 6, Guaranteed Account Value (GAV) Benefit; section 7, Expenses Withdrawal Charge; and
section 11, Death Benefit GMDB Adjusted Partial Withdrawal Formula.
For tax purposes, Annuity Payments we make under a Partial Annuitization will be treated as partial withdrawals
and not as annuity payments. However, once the entire Contract Value has been applied to Annuity Payments, we
intend to treat all Annuity Payments we make after that as annuity payments (and not withdrawals) for tax purposes. If
you take a Partial Annuitization(s) and subsequently take a full withdrawal of the entire remaining Contract Value, all
Annuity Payments we make on or after the Business Day you take the withdrawal, should be treated as annuity payments
(and not withdrawals) for tax purposes.
If the Annuity Payments we make are treated as withdrawals (and not annuity payments) for tax purposes, under Non-
Qualified Contracts, any gains in the entire Contract will be considered to be distributed before Purchase Payments and
will be subject to ordinary income tax. For Qualified Contracts, in most cases, the entire Annuity Payment we make under
a Partial Annuitization will be subject to ordinary income taxes. If any Owner is younger than age 59, the taxable
portion of the Annuity Payments we make under a Partial Annuitization may also be subject to a 10% federal penalty tax.
Partial Annuitizations may also affect the tax treatment of any future Annuity Payments. We may also make deductions to
reimburse ourselves for premium taxes that we pay from partially annuitized amounts. You should consult a tax adviser
before requesting a Partial Annuitization.
ANNUIT Y OPT IONS
You can choose one of the income plans (Annuity Options) described below or any other payment option to which we
agree. Before the Income Date, you can select and/or change the Annuity Option with at least 30 days written notice to us.
After Annuity Payments begin, you cannot change the Annuity Option.
Annuity Payments will usually be lower if you select an Annuity Option that requires us to make more frequent Annuity
Payments or to make payments over a longer period of time. For example, the guaranteed initial monthly fixed payout
rates under Annuity Option 4 with a guarantee period of 20 years or more are the lowest fixed rates we offer, and the
guaranteed initial monthly fixed payout rates under Annuity Option 1 are the highest fixed rates we offer. Annuity
Payments will also be lower if you request Annuity Payments at an early age (for example, when the Annuitant is age 50)
as opposed to waiting until the Annuitant is older (for example, when the Annuitant is age 70).
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Option 1. Life Annuity. We will make Annuity Payments during the life of the Annuitant, and the last payment will be
the one that is due before the Annuitants death. If the Annuitant dies shortly after the Income Date, the Payee may
receive less than your investment in the Contract.
Option 2. Life Annuity with Payments Over 5, 10, 15 or 20 Years Guaranteed. We will make Annuity Payments
during the life of the Annuitant. If you take one single Full Annuitization and the Annuitant dies before the end of the
selected guaranteed period, we will continue to make Annuity Payments to the Payee for the rest of the guaranteed period.
Alternatively, the Owner may elect to receive a lump sum payment. Under a Partial Annuitization, if the Annuitant dies
before the end of the selected guaranteed period, we will make a lump sum payment to the Beneficiary. The lump sum
payment is equal to the present value of the remaining guaranteed Annuity Payments as of the date we receive proof of
the Annuitants death and a payment election form at our Service Center. For variable Traditional Annuity Payments, in
most states, we base the remaining guaranteed Traditional Annuity Payments on the current value of the Annuity Units
and we use the assumed investment rate to calculate the present value. For fixed payouts, in most states, we calculate the
present value of the remaining guaranteed Annuity Payments using the Statutory Calendar Year Interest Rate based on the
NAIC Standard Valuation Law for Single Premium Immediate Annuities corresponding to the Income Date. However,
some states require us to use different interest rates for variable and fixed payouts for the present value calculation. We
require proof of the Annuitants death and return of the Contract before we will make any lump sum payment. There are
no additional costs associated with a lump sum payment.
Option 3. Joint and Last Survivor Annuity. We will make Annuity Payments during the joint lifetime of the Annuitant
and the joint Annuitant. Upon the death of one Annuitant, Annuity Payments to the Payee will continue during the
lifetime of the surviving joint Annuitant, at a level of 100%, 75% or 50% of the previous amount, as selected by the
Owner. Annuity Payments will stop with the last payment that is due before the last surviving joint Annuitants death. If
both Annuitants die shortly after the Income Date, the Payee may receive less than your investment in the Contract. This
Annuity Option is not available to you under a Partial Annuitization.
Option 4. Joint and Last Survivor Annuity with Payments Over 5, 10, 15 or 20 Years Guaranteed. We will make
Annuity Payments during the joint lifetime of the Annuitant and the joint Annuitant. Upon the death of one Annuitant,
Annuity Payments will continue to the Payee during the lifetime of the surviving joint Annuitant at 100% of the amount
that was paid when both Annuitants were alive. However, if both joint Annuitants die before the end of the selected
guaranteed period, we will continue to make Annuity Payments to the Payee for the rest of the guaranteed period.
Alternatively, the Owner may elect to receive a lump sum payment equal to the present value of the remaining guaranteed
Annuity Payments as of the date we receive proof of the last surviving joint Annuitants death and a payment election
form at our Service Center. For variable Traditional Annuity Payments, in most states, we base the remaining guaranteed
Traditional Annuity Payments on the current value of the Annuity Units and we use the assumed investment rate to
calculate the present value. For fixed payouts, in most states, we calculate the present value of the remaining guaranteed
Annuity Payments using the Statutory Calendar Year Interest Rate based on the NAIC Standard Valuation Law for Single
Premium Immediate Annuities corresponding to the Income Date. However, some states require us to use different
interest rates for variable and fixed payouts for the present value calculation. We require proof of death of both joint
Annuitants and return of the Contract before we will make any lump sum payment. There are no additional costs
associated with a lump sum payment. This Annuity Option is not available to you under a Partial Annuitization.
Option 5. Refund Life Annuity. We will make Annuity Payments during the lifetime of the Annuitant, and the last
payment will be the one that is due before the Annuitants death. After the Annuitants death, the Payee may receive a
lump sum refund. For a fixed payout, the amount of the refund will equal the amount applied to this Annuity Option
minus the total of all Annuity Payments made under this option.
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For variable Traditional Annuity Payments, the amount of the refund will depend on the current Investment Option
allocation and will be the sum of refund amounts attributable to each Investment Option. We calculate the refund amount
for a given Investment Option using the following formula.
(A) x {[(B) x (C) x (D)/(E)] - [(D) x (F)]}
where:
(A) = Annuity Unit value of the subaccount for that given Investment Option when due proof of the Annuitants
death is received at our Service Center.
(B) = The amount applied to variable Traditional Annuity Payments on the Income Date.
(C) = Allocation percentage in a given subaccount (in decimal form) when due proof of the Annuitants death is
received at our Service Center.
(D) = The number of Annuity Units used in determining each variable Traditional Annuity Payment attributable to
that given subaccount when due proof of the Annuitants death is received at our Service Center.
(E) = Dollar value of first variable Traditional Annuity Payment.
(F) = Number of variable Traditional Annuity Payments made since the Income Date.
We will base this calculation upon the allocation of Annuity Units actually in force at the time due proof of the
Annuitants death is received at our Service Center. We will not pay a refund if the total refund determined using the
above calculation is less than or equal to zero.
EXAMPLE
The Contract has one Owner who is a 65-year-old male. He elects variable Annuity Payments under Annuity Option 5
based on a Contract Value of $100,000 (item B).
The Owner/Annuitant allocates all the Contract Value to one Investment Option, so the allocation percentage in this
subaccount is 100% (item C).
The purchase rate for the selected assumed investment rate is $6.15 per month per thousand dollars of Contract Value
annuitized. Therefore, the first variable Annuity Payment is: $6.15 x ($100,000 / $1,000) = $615 (item E).
Assume the Annuity Unit value on the Income Date is $12, then the number of Annuity Units used in determining
each Annuity Payment is: $615 / $12 = 51.25 (item D).
The Owner/Annuitant dies after receiving 62 Annuity Payments (item F) and the Annuity Unit value for the
subaccount on the date the Service Center receives due proof of death is $15 (item A).
We calculate the refund as follows:
(A) x {[(B) x (C) x (D)/(E)] [(D) x (F)]} = 15 x {[100,000 x 1.00 x (51.25 / 615)] [51.25 x 62]} =
15 x {[100,000 x 0.083333] 3,177.50} = 15 x {8,333.33 3,177.50} = 15 x 5,155.83 = $77,337.50
Option 6. Specified Period Certain Annuity. This option is only available for fixed Traditional Annuity Payments
in the state of Florida. Under this option, we will make Traditional Annuity Payments for a specified period of time.
You select the specified period, which must be a whole number of years from ten to 30. If the last Annuitant dies before
the end of specified period certain, then we will continue to make Traditional Annuity Payments to the Payee for the rest
of the period certain. This Annuity Option is not available to you under a Partial Annuitization.
NOTE FOR OWNERS THAT ARE YOUNGER THAN AGE 59: Your Annuity Payments under Annuity Option 6
may be subject to a 10% federal penalty tax if the specified period certain you select is less than your life expectancy.
TR AD IT IONAL AN NU IT Y PA YMENTS
Annuity Payments offer a guaranteed income stream with certain tax advantages and are designed for Owners who are not
concerned with continued access to Contract Value.
You can request Traditional Annuity Payments under Annuity Options 1-5 as:
a variable payout,
a fixed payout, or
a combination of both.
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If you do not choose an Annuity Option before the Income Date, we will make variable Traditional Annuity Payments to
the Payee under Annuity Option 2 with ten years of guaranteed monthly payments.
Under a fixed payout, all of the Annuity Payments will be the same dollar amount (equal installments) except as provided
under Annuity Option 3. If you choose a variable payout, you can continue to invest in up to 15 of the available
Investment Options. We may change this in the future, but we will always allow you to invest in at least five Investment
Options. If you do not tell us otherwise, we will base variable Traditional Annuity Payments on the investment allocations
that were in place on the Income Date. We will not allow you to apply amounts of less than $5,000 to an Annuity Option.
If your Contract Value, adjusted for any applicable MVA (less any deduction we make to reimburse ourselves for
premium tax that we pay), is less than $5,000 on the Income Date, we will refund that amount to you. Currently, it is our
business practice that the initial Traditional Annuity Payment exceed $50. We will contact you to discuss alternate
payment arrangements if the initial Traditional Annuity Payment would be $50 or less. Guaranteed fixed Traditional
Annuity Payments are based on an interest rate and mortality table specified in your Contract. The payout rates for fixed
Traditional Annuity Payments provided by your Contract are guaranteed and in no event will we use lower fixed payout
rates to calculate your fixed Traditional Annuity Payments. However, we may use higher fixed payout rates to calculate
fixed Traditional Annuity Payments than the guaranteed rates provided by your Contract.
If you choose to have any portion of the Traditional Annuity Payments based on the investment performance of the
Investment Option(s), the dollar amount of the payments will depend upon the following factors.
The Contract Value (adjusted for any applicable MVA and any deduction we make to reimburse ourselves for
premium tax that we pay) on the Income Date.
The age of the Annuitant and any joint Annuitant on the Income Date.
The sex of the Annuitant and any joint Annuitant, where permitted.
The Annuity Option you select.
The assumed investment rate (AIR) you select.
The mortality table specified in the Contract.
The future performance of the Investment Option(s) you select.
You can choose a 3%, 5% or 7% AIR. The 7% AIR is not available in all states. Using a higher AIR results in a higher
initial variable Traditional Annuity Payment, but later payments will increase more slowly when investment performance
rises and decrease more rapidly when investment performance declines. If the actual performance of your Investment
Options exceeds the AIR you selected, the variable Traditional Annuity Payments will increase. Similarly, if the actual
performance is less than the AIR you selected, the variable Traditional Annuity Payments will decrease.
Each portion of the Contract that you apply to Traditional Annuity Payments will terminate upon the earliest of
the following.
Under Annuity Options 1 and 3, the death of the last surviving Annuitant.
Under Annuity Options 2 and 4, the death of the last surviving Annuitant and expiration of the guaranteed period. If
we make a lump sum payment of the remaining guaranteed Traditional Annuity Payments at the death of the last
surviving Annuitant, this portion of the Contract will terminate upon payment of the lump sum.
Under Annuity Option 5, the death of the Annuitant and payment of any lump sum refund.
Under Annuity Option 6, the expiration of the specified period certain.
Contract termination.
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GU ARA NTEED MIN I MUM IN COME B ENEF IT (GMIB)
In most states, if you choose to include Living Guarantees in your Contract, the Living Guarantees will include a GMIB.
Living Guarantees must be selected at Contract issue. After the Issue Date, the Living Guarantees cannot be added to or
removed from your Contract. You must hold the Contract for five complete Contract Years before you can exercise the
GMIB. The GMIB may not be appropriate for you if you intend to hold the Contract for less than five years or if you
intend to take a Full Annuitization before the end of the five year waiting period. The GMIB does not create Contract
Value or guarantee the performance of any Investment Option.
If you purchase this Contract under a qualified plan that is subject to required minimum distributions (RMDs) and you do
not exercise the GMIB on or before the date RMD payments must begin under a qualified plan, the Owner or Beneficiary
may not be able to exercise the GMIB due to the restrictions imposed by the minimum distribution requirements. You
should consider whether the GMIB is appropriate for your situation if you plan to exercise the GMIB after your
RMD beginning date.
The GMIB may not be available in your state; check with your registered representative.
The GMIB provides guaranteed minimum fixed income in the form of Annuity Payments (GMIB Payments). Depending
on the Annuity Option you select, the GMIB can provide guaranteed lifetime income, but if the Annuitant(s) die shortly
after the Income Date, the Payee may receive less than your investment in the Contract. You can always annuitize your
Contract Value two years or more after the Issue Date under a fixed and/or variable traditional Annuity Option. However,
if you do, you cannot use the GMIB value.
The annuity income protection provided by the GMIB will apply only under the following circumstances.
Your Income Date must be within 30 days following a Contract Anniversary beginning with the fifth Contract
Anniversary.
GMIB Payments can only be made as fixed payments regardless of the Annuity Option you select.
You must select a lifetime income Annuity Option (Annuity Options 1-5).
Under the GMIB, you can take either a Full Annuitization, or you can take Partial Annuitization(s) if the GMIB value is
greater than the Contract Value.
If you exercise the GMIB under a Full Annuitization:
The Accumulation Phase will end and the Annuity Phase will begin.
The portion of the Contract that you apply to the GMIB will no longer be subject to the M&E charge, but any portion
of the Contract that has been applied to variable Traditional Annuity Payments will continue to be subject to a 1.25%
M&E charge for the February 2007 Contract and the Original Contract issued on or after June 22, 2007.
The GMDB endorsement will terminate.
If you exercise the GMIB under a Partial Annuitization*:
The Annuity Phase will begin and the Accumulation Phase will continue.
The portion of the Contract that you apply to the GMIB will no longer be subject to the M&E charge, but any portion
of the Contract that is in the Accumulation Phase or that has been applied to variable Traditional Annuity Payments
will continue to be subject to the appropriate M&E charge.
If any portion of the Contract is still in the Accumulation Phase, you may be able to make additional Purchase
Payments to the Contract, but you cannot make additional Purchase Payments to any portion of the Contract that is in
the Annuity Phase.
The Partial Annuitization will reduce each Purchase Payment, the Contract Value and GMDB value proportionately
by the percentage of GMIB value you apply to the GMIB.
GMIB Payments will not affect the Contract Value available under the portion of the Contract that is in the
Accumulation Phase.
* Not available if the GMIB value is less than the Contract Value.
If you take a Partial Annuitization, you cannot do any of the following.

Transfer any amounts you allocated to GMIB Payments back to the portion of the Contract that is in the Accumulation
Phase.
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Transfer amounts from one Annuity Payment stream to another.

Allocate additional GMIB value (or Contract Value) to an existing stream of Annuity Payments.
In order to begin receiving GMIB Payments, you must submit an income option election form to our Service Center after
the expiration of the five-year waiting period and within 30 days following a Contract Anniversary. GMIB Payments will
begin after your request has been received at our Service Center and is determined to be in good order. We will make
GMIB Payments to you beginning on the 30th day after your Contract Anniversary. If the scheduled GMIB Payment date
does not fall on a Business Day, we will make payment to you on the next Business Day.
Each portion of the Contract that you apply to GMIB Payments will terminate upon the earliest of the following.
Under Annuity Options 1 and 3, the death of the last surviving Annuitant.
Under Annuity Options 2 and 4, the death of the last surviving Annuitant and expiration of the guaranteed period.*
Under Annuity Option 5, the death of the Annuitant and payment of any lump sum refund.
* If we make a lump sum payment of the remaining guaranteed GMIB Payments at the death of the last surviving Annuitant, this portion of the
Contract will terminate upon payment of the lump sum.
TAXATIO N OF GMIB PAYMENT S

If you take a GMIB Partial Annuitization, GMIB Payments will be treated as withdrawals and not annuity payments for
tax purposes. This means that for tax purposes, any Contract earnings in the entire Contract will be considered to be
distributed before Purchase Payments and may be subject to a 10% federal penalty tax. For Non-Qualified Contracts,
gains are generally subject to income tax and Purchase Payments are not. For Qualified Contracts, the entire GMIB
Payment under a Partial Annuitization will most likely be subject to income taxes. For more information on Partial
Annuitizations, please see the discussion that appears earlier in this section.
If you take a Full Annuitization under the GMIB, GMIB Payments should be treated as annuity payments for tax
purposes. If you take a GMIB Partial Annuitization, it should be treated as annuity payments (and not withdrawals) for
tax purposes only after the Income Date on which you have applied the entire remaining Contract Value to Annuity
Payments under the GMIB and/or Traditional Annuity Payments. That is, the Income Date after the Contract has been
fully annuitized. For Non-Qualified Contracts that have been fully annuitized, a portion of each payment may be treated
as gains that are subject to tax as ordinary income, and the remaining portion of the payment will be considered to be a
return of your investment and will not be subject to income tax. Once we have paid out all of your Purchase Payments,
however, the full amount of each GMIB Payment will be subject to tax as ordinary income. For Qualified Contracts, the
entire GMIB Payment will most likely be subject to tax as ordinary income. Once you apply the entire Contract Value to
Annuity Payments, GMIB Payments will generally not be subject to the 10% federal penalty tax.
A MOUN T USED TO CAL CUL AT E G M IB PA YMENT S
The GMIB guarantees that the GMIB Payments will be equal to the guaranteed fixed payout rates applied to the GMIB
value. There may be situations where the GMIB value is greater than the Contract Value, but the GMIB Payments are less
than fixed Traditional Annuity Payments based on the Contract Value. This may occur because the guaranteed fixed
payout rates available with the GMIB may be less than the current fixed payout rates that are otherwise available under
Traditional Annuity Payments. We will base your Annuity Payments on whichever amount (GMIB value or Contract
Value) produces the greater payment.
G MI B VAL U E
If the older Owner is age 80 on the Issue Date, your GMIB value before the date of your death is equal to the total
Purchase Payments received minus each GMIB adjusted partial withdrawal taken.
If all Owners are age 79 or younger on the Issue Date, your GMIB value before the date of your death is equal to the
greater of:
total Purchase Payments received minus each GMIB adjusted partial withdrawal taken, or
the MAV.
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Calculating the MAV

The MAV on the Issue Date is equal to your initial Purchase Payment received on the Issue Date.
On each Business Day other than a Contract Anniversary, the MAV is equal to:
its value on the immediately preceding Business Day,
plus any additional Purchase Payments received that day, and
reduced by any GMIB adjusted partial withdrawal taken that day.
On each Contract Anniversary before the older Owners 81st birthday (or the Annuitants 81st birthday if the
Contract is owned by a non-individual), the MAV is equal to the greater of its value on the immediately preceding
Business Day, or the Contract Value that occurs on that Contract Anniversary before we process any transactions. We
then process any transactions we received on that Contract Anniversary (such as additional Purchase Payments,
withdrawals, and Partial Annuitizations) in the same way that we do on each Business Day other than a Contract
Anniversary.
Beginning with the Contract Anniversary that occurs on or after the older Owners 81st birthday (or the
Annuitants 81st birthday if the Contract is owned by a non-individual), we calculate the MAV in the same way that we
do on each Business Day other than a Contract Anniversary.
G MIB A DJUST ED PART IAL WITHDRA WAL S
Any GMIB Partial Annuitizations you take will reduce the GMIB value by the dollar amount applied to the GMIB
Payments.
For each withdrawal or traditional Partial Annuitization taken before the second Contract Anniversary, a GMIB adjusted
partial withdrawal is equal to: PW x GMIB
For each withdrawal or traditional Partial Annuitization taken on or after the second Contract Anniversary, a GMIB
adjusted partial withdrawal is equal to: FPW + (RPW x GMIB)
PW = The amount of Contract Value (before any MVA) applied to a traditional Partial Annuitization or
withdrawn (including any applicable withdrawal charge).
FPW = The amount of the partial withdrawal (before any MVA) that, together with any other previous partial
withdrawals taken during the Contract Year, does not exceed 12% of total Purchase Payments received (the
partial withdrawal privilege). However, if you take a traditional Partial Annuitization, the entire amount of
Contract Value (before any MVA) applied to the traditional Partial Annuitization will be included in the
RPW portion of this formula.
RPW = The remaining amount of the partial withdrawal, including any applicable withdrawal charge, but before
any MVA.
GMIB = The greater of one, or the ratio of (a) divided by (b) where:
(a) = The GMIB value on the day of (but before) the partial withdrawal.
(b) = The Contract Value on the day of (but before) the partial withdrawal or traditional Partial
Annuitization, adjusted for any applicable MVA.
Any withdrawals taken in the first two Contract Years and any traditional Partial Annuitizations you take may
reduce the GMIB value by more than the amount withdrawn or annuitized. Beginning on the second Contract
Anniversary, any withdrawals you take in excess of the partial withdrawal privilege may reduce the GMIB values
by more than the amount withdrawn. For these withdrawals and annuitizations, if the Contract Value at the time of
withdrawal or annuitization is greater than or equal to the GMIB value, we will reduce the GMIB value by the dollar
amount withdrawn or annuitized. If the Contract Value at the time of withdrawal or annuitization is less than the GMIB
value, we will reduce the GMIB value by more than the amount withdrawn or annuitized.
Please see Appendix C for examples of calculations of the GMIB value.
19
3. PURCHASE
PURCHASE PAYM ENTS
A Purchase Payment is the money you put into the Contract. To purchase this Contract, all Owners and Annuitant(s) must
be age 80 or younger on the Issue Date. The initial Purchase Payment is due on the Issue Date. The Purchase Payment
requirements for this Contract are as follows.
The minimum initial payment we will accept is $10,000.
You can make additional Purchase Payments of $50 or more during the Accumulation Phase.
You cannot make any additional Purchase Payments to the Contract after the Income Date that you take a Full
Annuitization (including a required Full Annuitization on the maximum permitted Income Date). In certain
states, additional Purchase Payments can only be made during the first Contract Year or may be otherwise
restricted.
The maximum total amount we will accept without our prior approval is $1 million (including amounts already
invested in other Allianz Life variable annuities).
If we make this Contract available as an Inherited IRA, the death benefit proceeds of the previous tax-qualified
investment must be directly transferred into this Contract (see section 9, Access to Your Money The Minimum
Distribution Program and Required Minimum Distribution (RMD) Payments). A beneficiary can apply the death
benefit proceeds from multiple tax-qualified investments that were owned by the same owner to the purchase of an
Inherited IRA Contract. We will not accept any other forms of Purchase Payment on an Inherited IRA Contract. The
death benefit proceeds cannot be received by the beneficiary and then applied to an Inherited IRA Contract. For more
information on Inherited IRA Contracts, see section 8, Taxes Qualified Contracts Inherited IRA.
Purchase Payments to Qualified Contracts must not be greater than allowed under federal law and must be from
earned income or a qualified transfer. Purchase Payments to Qualified Contracts other than from a qualified
transfer may be restricted after the Owner reaches age 70.
We may, at our sole discretion, waive the minimum Purchase Payment requirements. We reserve the right to decline any
Purchase Payment.
A U T O M A T I C I N V E ST M ENT PLA N ( A I P)
The AIP is a program that allows you to make additional Purchase Payments to your Contract during the Accumulation
Phase on a monthly or quarterly basis by electronic transfer of money from your savings, checking or brokerage account.
You may participate in this program by completing the appropriate form. Our Service Center must receive your form by
the first of the month in order for AIP to begin that same month. Investments will take place on the 20th of the month or
the next Business Day if the 20th is not a Business Day. The minimum investment that you can make by AIP is $50. You
may stop or change the AIP at any time you want. We must be notified by the first of the month in order to stop or change
the AIP for that month. If the AIP is used for a Qualified Contract, you should consult your tax adviser for advice
regarding maximum contributions. The AIP is not available if the Qualified Contract is funding a plan that is tax qualified
under Section 401of the Internal Revenue Code.
AL LOCAT ION OF PUR CHA SE PAYMENT S
We do not currently accept allocation instructions from you via email, website, or other electronic communications. This
service may be available to you in the future. When you purchase a Contract, we will allocate your initial Purchase
Payment to the Investment Choices you selected according to your instructions. We ask that you allocate your money in
whole percentages. Transfers of Contract Value between Investment Choices will not change the allocation instructions
for any future additional Purchase Payments. You can instruct us how to allocate additional Purchase Payments you
make. If you do not instruct us, we will allocate them according to your most recent allocation instructions. You can only
allocate up to 50% of any Purchase Payment to the FPAs during the Accumulation Phase. In some states, you cannot
make allocations to the FPAs and they may only be available for GAV Transfers we make. In addition, if your Contract
includes the Living Guarantees, we may transfer more than 50% of the total Purchase Payments to the FPAs beginning on
the second Contract Anniversary.
20
You may provide us with new allocation instructions at any time without fee, penalty or other charge upon written notice
or telephone instructions to our Service Center. The new allocation instructions will be effective for Purchase Payments
received on or after the Business Day we receive your notice or instructions in good order at our Service Center. If you
change your allocation instructions and you are participating in the automatic investment plan or the flexible rebalancing
program, your allocation instructions must include directions for the plan/program.
We reserve the right to limit the number of Investment Options that you can invest in at any one time. Currently, you can
invest in up to 15 of the Investment Options at any one time. We may change this in the future; however, we will always
allow you to invest in at least five Investment Options.
Once we receive your initial Purchase Payment and the necessary information, we will issue the Contract and allocate
your initial Purchase Payment within two Business Days. If you do not give us all of the information we need, we will
contact you or your registered representative to get it. If for some reason we are unable to complete this process within
five Business Days, we will either send back your money or get your permission to keep it until we get all of the
necessary information. If you make additional Purchase Payments, we will credit these amounts to the Contract within
one Business Day. Our Business Day closes when regular trading on the New York Stock Exchange closes. If you submit
a Purchase Payment and/or application to your registered representative, we will not begin processing the Purchase
Payment until it is received at our Service Center. We consider a Purchase Payment to be received when it is received
at our Service Center regardless of how or when you made the payment.
If mandated under applicable law, we may be required to reject a Purchase Payment. We also may be required to provide
information about you or your Contract to government regulators. In addition, we may be required to block an Owners
Contract and thereby refuse to pay any request for transfers, withdrawals, surrenders, or death benefits until instructions
are received from the appropriate regulator.
TA X- FR EE SECT ION 1035 EXC HANGES
Subject to certain restrictions, you can make a tax-free exchange under Section 1035 of the Internal Revenue Code for
all or a portion of one annuity contract for another, or all or a portion of a life insurance policy for an annuity contract.
Before making an exchange, you should compare both contracts carefully. Remember that if you exchange a life
insurance policy or annuity contract for the Contract described in this prospectus:
you might have to pay a withdrawal charge on your previous contract,
there will be a new withdrawal charge period for this Contract,
other charges under this Contract may be higher (or lower),
the benefits may be different, and
you will no longer have access to any benefits from your previous contract.
If the exchange does not qualify for Section 1035 treatment, you also may have to pay federal income tax, including a
possible federal penalty tax, on the exchange. You should not exchange an existing life insurance policy or another
annuity contract for this Contract unless you determine that the exchange is in your best interest and not just better for the
person trying to sell you the Contract (that person will generally earn a commission on each contract sale). If you
contemplate such an exchange, you should consult a tax adviser to discuss the potential tax effects of such a
transaction.
F A X ED A P PL ICA T IO NS
We will accept Contract applications delivered in writing and, in most states, we will accept applications via fax. It is
important that you verify that we have received any faxed application you send. We are not liable for faxed transaction
requests that were sent by you but not received by us. We will treat a manually signed faxed application as an application
delivered in writing. Please note that fax communications may not always be available. Any fax system, whether it is
ours, yours, your service providers, or your registered representatives, can experience outages or slowdowns for a
variety of reasons. These outages or slowdowns may delay or prevent our processing of your request. Although we have
taken precautions to help our systems handle heavy use, we cannot promise complete reliability under all circumstances.
If you are experiencing problems, you should submit your application in writing to our Service Center. We reserve the
right to discontinue or modify the faxed application privilege at any time and for any reason. We do not currently accept
applications delivered via email or our website. This may be available in the future.
21
FR EE LOOK /R IGHT TO EXA MI NE
If you change your mind about owning the Contract, you can cancel it within ten days after receiving it (or the period
required in your state). When you cancel the Contract within this time period, we will not assess a withdrawal charge. In
most states, you will receive your Contract Value as of the day we receive your request. This may be more or less than
your initial Purchase Payment. In certain states, or if you purchased this Contract as an IRA, we are required to refund
your Purchase Payment less withdrawals if you decide to cancel your Contract within the free look period. In these
instances, if you cancel your Contract you will receive the greater of Purchase Payments less withdrawals, or Contract
Value. In cases where we are required to refund the Purchase Payment, we reserve the right to allocate your initial
Purchase Payment to the AZL Money Market Fund until the expiration of the free look period. At the end of that period,
we will re-allocate your money as you selected. If we are required to refund the Purchase Payments and you cancel your
Contract or we reject your application, you will receive the greater of Purchase Payments less withdrawals or Contract
Value, regardless of how your Purchase Payments were allocated. For Owners in California age 60 or older, we are
required to allocate your money to the AZL Money Market Fund during the free look period unless you specify otherwise
on the appropriate form. The free look provision under the Contract is also called the right to examine.
A CCU MULA TION UN IT S/CO MPUTING TH E CO NTRA CT VALU E
Your Contract Value in the subaccounts (Separate Account Value) will go up or down based upon the investment
performance of the Investment Option(s) you choose. Your Contract Value will also be affected by the charges of the
Contract, any interest you earn on any general account Investment Choices, and any MVAs made due to amounts
removed from the FPAs. In order to keep track of your Separate Account Value, we use a measurement called an
Accumulation Unit. If you request variable Traditional Annuity Payments during the Annuity Phase of the Contract, we
call this measurement an Annuity Unit.
When we receive a Purchase Payment, we credit your Contract with Accumulation Units for any portion of your Purchase
Payment allocated to an Investment Option at the daily price next determined after receipt of the Purchase Payment at our
Service Center. The daily purchase price is normally determined at the end of each Business Day, and any Purchase
Payment received at or after the end of the current Business Day will receive the next Business Days price. The Purchase
Payments you allocate to the Investment Options are actually placed into subaccounts. Each subaccount invests
exclusively in one Investment Option. We determine the number of Accumulation Units we credit to your Contract by
dividing the amount of the Purchase Payment allocated to a subaccount by the value of the corresponding Accumulation
Unit.
Every Business Day, we determine the value of an Accumulation Unit for each subaccount by multiplying the
Accumulation Unit value for the previous Business Day by the net investment factor for the current Business Day. We
determine the net investment factor by:
dividing the net asset value of a subaccount at the end of the current Business Day by the net asset value of the
subaccount for the previous Business Day,
adding any applicable dividends or capital gains, and
multiplying this result by one minus the amount of the M&E charge for the current Business Day and any charges for
taxes.
We calculate the value of each Accumulation Unit after regular trading on the New York Stock Exchange closes each
Business Day. The value of an Accumulation Unit may go up or down from Business Day to Business Day. We calculate
your Separate Account Value by multiplying the Accumulation Unit value in each subaccount by the number of
Accumulation Units for each subaccount and then adding those results together. (For example, the Contract Value on any
Contract Anniversary will reflect the number and value of the Accumulation Units at the end of the previous Business
Day.)
Example
On Wednesday, we receive at our Service Center an additional Purchase Payment of $3,000 from you before the end
of the Business Day.
When the New York Stock Exchange closes on that Wednesday, we determine that the value of an Accumulation Unit
based on the Investment Option you chose is $13.25.
We then divide $3,000 by $13.25 and credit your Contract on Wednesday night with 226.41509 subaccount
Accumulation Units for the Investment Option you chose. If the $3,000 payment had been received at or after the end of
the current Business Day, it would have received the next Business Days price.
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4. INVESTMENT OPTIONS
The Contract offers the Investment Options listed in the following table. Each Investment Option has its own investment
objective. In the future, we may add, eliminate or substitute Investment Options. Depending on market conditions, you
can gain or lose value by investing in the Investment Options.
You should read the Investment Options prospectuses carefully. The Investment Options invest in different types of
securities and follow varying investment strategies. There are potential risks associated with each of these types of
securities and investment strategies. For example, an Investment Options performance may be affected by risks specific
to certain types of investments, such as foreign securities, derivative investments, non-investment grade debt securities,
initial public offerings (IPOs) or companies with relatively small market capitalizations. IPOs and other investment
techniques may have a magnified performance impact on an Investment Option with a small asset base. An Investment
Option may not experience similar performance as its assets grow. The operation of the Investment Options and the
various risks associated with the Investment Options are described in the Investment Options prospectuses. To obtain a
current prospectus for any of the Investment Options, contact your registered representative or call us at the toll
free telephone number listed at the back of this prospectus. We will send copies of the Investment Options
prospectuses to you when we issue the Contract.
Certain Investment Options issue two or more classes of shares and certain share classes may have Rule 12b-1 fees. The
classes of shares currently offered by this Contract are listed in the table of annual operating expenses for each Investment
Option that appears in Appendix A. For more information about share classes, see the Investment Options prospectuses.
Currently, the Investment Options are not publicly traded mutual funds. They are available only as investment options in
variable annuity contracts or variable life insurance policies issued by life insurance companies or in some cases, through
participation in certain qualified pension or retirement plans. The names, investment objectives and policies of certain
Investment Options may be similar to the names, investment objectives and policies of other portfolios that the same
investment advisers manage. Although the names, objectives and policies may be similar, the investment results of the
Investment Options may be higher or lower than the results of such portfolios. The investment advisers cannot guarantee,
and make no representation, that the investment results of similar funds will be comparable even though the Investment
Options have the same names, investment advisers, objectives and policies.
The AZL FusionPortfolios are offered by the Allianz Variable Insurance Products Fund of Funds Trust. Each of the AZL
FusionPortfolios is a fund of funds and diversifies its assets by investing in the shares of several other affiliated mutual
funds.
The underlying funds may pay 12b-1 fees to the distributor of the Contracts, our affiliate, Allianz Life Financial Services,
LLC, for distribution and/or administrative services. The underlying funds do not pay service fees or 12b-1 fees to the
AZL FusionPortfolios, and the AZL FusionPortfolios do not pay service fees or 12b-1 fees. The underlying funds of the
AZL FusionPortfolios or their advisers may pay service fees to us and our affiliates for providing customer service and
other administrative services to Contract Owners. The amount of such service fees may vary depending on the underlying
fund.
We offer other variable annuity contracts that may invest in the same Investment Options. These contracts may have
different charges and may offer different benefits more appropriate to your needs. For more information about these
contracts, please contact our Service Center.
The following advisers and subadvisers are affiliated with us: Allianz Investment Management LLC, Nicholas-Applegate
Capital Management, Oppenheimer Capital LLC and Pacific Investment Management Company LLC. The following is a
list of the Investment Options available under the Contract, the investment advisers and subadvisers for each Investment
Option, the investment objectives for each Investment Option, and the primary investments of each Investment Option.
23
INVESTMENT OPTIONS
Investment
Management Name of
Asset Primary Investments
Company Investment Objective(s)
Category (Normal market conditions)
and Option
Adviser/Subadviser
AIM
Managed by Allianz AZL AIM International Long-term growth of At least 80% of its assets in a diversified portfolio of
Investment Management International Equity Equity capital international equity securities whose issuers are considered
LLC/Investco Aim Capital Fund by the funds subadviser to have strong earnings
Management, Inc. momentum.
BLACKROCK
Managed by Allianz AZL Money Market Cash Equivalent Current income Invests in a broad range of short-term, high quality U.S.
Investment Management Fund consistent with dollar-denominated money market instruments, including
LLC/BlackRock stability of principal government, U.S. and foreign bank, commercial and other
Institutional Management obligations. During extended periods of low interest rates,
Corporation and due in part to contract fees and expenses, the yield of
the AZL Money Market Fund may also become extremely
low and possibly negative.
Managed by BlackRock BlackRock Global Specialty High total Invests in both equity and debt securities of issuers located
Advisors, LLC/BlackRock Allocation V.I. Fund investment return around the world to achieve a combination of capital growth
Investment Management, and income.
LLC and BlackRock Asset
Management U.K. Limited
CLEARBRIDGE
Managed by Allianz AZL LMP Large Cap Large Growth Long-term growth of At least 80% of its net assets in equity securities of U.S.
Investment Management Growth Fund capital companies with large market capitalizations, similar to
LLC/ClearBridge Advisors, companies in the Russell 1000 Growth Index. Also may
LLC invest in preferred stocks, warrants and convertible
securities and up to 15% of its assets in securities of foreign
issuers.
COLUMBIA
Managed by Allianz AZL Columbia Specialty Capital Appreciation At least 80% of its total net assets in common stocks of U.S
Investment Management Technology Fund and foreign technology companies that may benefit from
LLC/Columbia technological improvements, advancements or
Management Advisors, developments.
LLC
DAVIS
Managed by Allianz AZL Davis NY Large Value Long-term growth of Invests the majority of assets in equity securities issued by
Investment Management Venture Fund capital large companies with market capitalizations of at least $10
LLC/Davis Selected billion.
Advisers, L.P.
Managed by Davis Davis VA Financial Specialty Long-term growth of At least 80% of net assets in securities issued by companies
Advisors Portfolio capital principally engaged in the financial services sector.
Davis VA Value Large Value Long-term growth of Invests primarily in equity securities issued by large
Portfolio capital companies with market capitalizations of at least $10 billion.
DREYFUS
Managed by Allianz AZL Dreyfus Large Growth Long-term growth of Primarily invests in common stocks of large, well-established
Investment Management Founders Equity capital and income and mature companies. Normally invests at least 80% of its
LLC/Founders Asset Growth Fund net assets in stocks that are included in a widely recognized
Management LLC index of stock market performance. May invest in non-
dividend paying companies if they offer better prospects for
capital appreciation. May invest up to 30% of its total assets
in foreign securities.
Managed by Allianz AZL Dreyfus Small Cap Seeks returns that Normally invests at least 80% of its net assets in stocks of
Investment Management Premier Small Cap are consistently small U.S. companies with market capitalizations between
LLC/The Dreyfus Value Fund superior to the $100 million and $3 billion at the time of purchase.
Corporation Russell 2000
Value Index
24
Investment
Management Name of
and Option
Adviser/Subadviser
Managed by Allianz AZL S&P 500 Index Large Blend Match total return of Normally invests in all 500 stocks in the S&P 500 in
Investment Management Fund the S&P 500 proportion to their weighting in the index.
LLC/The Dreyfus
Corporation
AZL Small Cap Small Cap Match performance Invests in a representative sample of stocks included in the
Stock Index Fund of the S&P S&P SmallCap 600 Index, and in futures whose
SmallCap 600 performance is related to the index, rather than attempt to
Index replicate the index.
Managed by The Dreyfus Dreyfus IP Small Small Cap Match performance Invests in a representative sample of stocks included in the
Corporation Cap Stock Index of the S&P S&P SmallCap 600 Index, and in futures whose
Portfolio SmallCap 600 performance is related to the index, rather than attempt to
Index replicate the index.
Dreyfus Stock Index Large Blend Match total return of Invests in all 500 stocks in the S&P 500 in proportion to
Fund, Inc. the S&P 500 their weighting in the index.
FIRST TRUST
Managed by Allianz AZL First Trust Large Blend Total Return Invests primarily in common stocks of companies that are
Investment Management Target Double Play identified by a model based on an allocation of 50% in two
LLC/First Trust Advisors Fund separate strategies that seek to provide above-average total
L.P. return.
FRANKLIN TEMPLETON
Managed by Allianz AZL Franklin Small Small Cap Long-term total Under normal market conditions, invests at least 80% of its
Investment Management Cap Value Fund return net assets in investments of small capitalization companies
LLC/Franklin Advisory similar to those that comprise the Russell 2500 Index at
Services, LLC the time of investment.
Managed by Franklin Franklin Global Specialty Capital appreciation At least 80% of net assets in investments of communications
Advisers, Inc. Communications and current income companies anywhere in the world and normally invests
Securities Fund primarily to predominantly in equity securities.
Managed by Franklin Franklin Global Real Specialty High Total Return At least 80% of net assets in investments of companies
Templeton Institutional, Estate Securities located anywhere in the world that operate in the real estate
LLC Fund sector and normally invests predominantly in equity
securities.
Managed by Franklin Franklin Growth and Large Value Capital appreciation, Invests predominantly in a broadly diversified portfolio of
Advisers, Inc. Income Securities with current income equity securities, including securities convertible into
Fund as a secondary goal common stock.
Franklin High High-Yield Bonds High current income Invests primarily to predominantly in debt securities offering
Income Securities with capital high yield and expected total return.
Fund appreciation as a
secondary goal
Franklin Income Specialty Maximize income Normally invests in debt and equity securities, including
Securities Fund while maintaining corporate, foreign and U.S. Treasury bonds and stocks with
prospects for capital dividend yields the manager believes are attractive.
appreciation
Franklin Large Cap Large Blend Capital appreciation At least 80% of net assets in investments of large
Growth Securities capitalization companies, and normally invests
Fund predominantly in equity securities.
Managed by Franklin Franklin Rising Mid Cap Long-term capital At least 80% of net assets in investments of companies that
Advisory Services, LLC Dividends Securities appreciation with have paid rising dividends, and normally invests
Fund preservation of predominantly in equity securities.
capital as an
important
consideration
Managed by Franklin Franklin SmallMid Mid Cap Long-term capital At least 80% of net assets in investments of small
Advisers, Inc. Cap Growth growth capitalization and mid capitalization companies and normally
Securities Fund invests predominantely in equity securities.
25
Investment
Management Name of
and Option
Adviser/Subadviser
Managed by Franklin Franklin Small Cap Small Cap Long term total At least 80% of net assets in investments of small
Advisory Services, LLC Value Securities return capitalization companies and normally invests predominantly
Fund in equity securities.
Administered by Franklin Franklin Templeton Specialty Capital appreciation Invests equal portions in Class 1 shares of the Franklin
Templeton Services, LLC VIP Founding Funds (Fund of Funds) with income as a Income Securities Fund, Mutual Shares Securities Fund, and
Allocation Fund secondary goal. Templeton Growth Securities Fund.
Managed by Franklin Franklin U.S. Short-Term Income At least 80% of its net assets in U.S. government securities
Advisers, Inc. Government Fund Bonds and normally invests primarily in fixed and variable rate
mortgage-backed securities.
Franklin Zero Intermediate- As high an Normally invests at least 80% of its net assets in zero
Coupon Fund 2010 Term Bonds investment return as coupon debt securities. The fund will mature in December of
is consistent with 2010 and will then no longer be available as an Investment
capital preservation Option under the Contract. For additional information
regarding the maturity of the fund, please see the Franklin
Zero Coupon Fund prospectus.
Managed by Franklin Mutual Discovery International Capital appreciation Invests primarily in U.S. and foreign equity securities that the
Mutual Advisers, LLC Securities Fund Equity manager believes are undervalued. The Fund also invests,
to a lesser extent, in risk arbitrage securities and distressed
companies.
Mutual Shares Large Value Capital appreciation, Invests primarily in U.S. and foreign equity securities that the
Securities Fund with income as a manager believes are undervalued. The fund also invests, to
secondary goal a lesser extent, in risk arbitrage securities and distressed
companies.
Managed by Templeton Templeton Specialty Long-term capital At least 80% of net assets in emerging market investments,
Asset Management, Ltd. Developing Markets appreciation and normally invests predominantly in equity securities.
Securities Fund
Managed by Templeton Templeton Foreign International Long-term capital Normally invests at least 80% of net assets in investments of
Investment Counsel, LLC Securities Fund Equity growth issuers located outside the U.S., including those in emerging
markets, and normally invests predominantly in equity
securities.
Managed by Franklin Templeton Global Intermediate- High current Normally invests mainly in debt securities of governments
Advisers, Inc. Income Securities Term Bonds income, consisent and their political subdivisions and agencies, supranational
Fund with preservation of organizations and companies located anywhere in the world,
capital, with capital including emerging markets.
appreciation as a
secondary
consideration.
Managed by Templeton Templeton Growth International Long-term capital Normally invests primarily in equity securities of companies
Global Advisors Limited Securities Fund Equity growth located anywhere in the world, including those in the U.S.
and in emerging markets.
FUSION PORTFOLIOS
Managed by Allianz AZL Fusion A Fund of Long-term capital Allocation among the underlying investments, to achieve a
Investment Management Balanced Fund Funds Model appreciation with range generally from 45% to 55% of assets in equity funds
LLC Portfolio preservation of with the remaining balance invested in fixed income funds.
capital as an
important
consideration
AZL Fusion Growth A Fund of Long-term capital Allocation among the underlying investments, to achieve a
Fund Funds Model appreciation range generally from 75% to 85% of assets in equity funds
Portfolio with the remaining balance invested in fixed income funds.
AZL Fusion A Fund of Long-term capital Allocation among the underlying investments, to achieve a
Moderate Fund Funds Model appreciation range generally from 60% to 70% of assets in equity funds
Portfolio with the remaining balance invested in fixed income funds.
26
Investment
Management Name of
and Option
Adviser/Subadviser
JENNISON
Managed by Allianz AZL Jennison 20/20 Large Blend Long-term growth of At least 80% of its total assets in approximately 40 (which
Investment Management Focus Fund capital may range up to 45) equity and equity-related securities of
LLC/Jennison Associates companies that the subadviser believes have strong capital
LLC appreciation potential.
AZL Jennison Large Growth Long-term growth of At least 65% of its total assets in equity and equity-related
Growth Fund capital securities of companies that exceed $1 billion in market
capitalization at the time of investment and that the
subadviser believes have above-average growth prospects.
Managed by Prudential Jennison 20/20 Large Blend Long-term growth of Invests primarily in up to 40 equity securities of U.S.
Investments LLC/Jennison Focus Portfolio capital companies that the subadviser believes to have strong
Associates LLC capital appreciation potential.
LEGG MASON
Managed by Allianz AZL Legg Mason Large Growth Maximum long-term Invests primarily in common stocks or securities convertible
Investment Management Growth Fund capital appreciation into or exchangeable for common stock. May invest up to
LLC/Legg Mason Capital with minimum long- 25% of total assets in foreign securities.
Management, Inc. term risk to principal
AZL Legg Mason Large Blend Long-term growth of Invests primarily in equity securities that, in the subadvisers
Value Fund capital opinion, offer the potential for capital growth. May invest up
to 25% of total assets in long-term debt securities and up to
10% of total assets in debt securities rated below investment
grade (junk bonds).
NEUBERGER BERMAN
Managed by Allianz AZL Neuberger Mid Cap Long-term growth of Invests mainly in common stocks of mid-cap companies, with
Investment Management Berman Regency capital a total market capitalization within the range of the Russell
LLC/Neuberger Berman Fund Midcap Index.
Management Inc.
NICHOLAS-APPLEGATE
Managed by Allianz AZL NACM International Maximum long-term At least 80% of its net assets in securities of companies in
Investment Management International Fund Equity capital appreciation developed countries located outside the U.S., represented in
LLC/Nicholas-Applegate the Morgan Stanley Capital International Europe Australasia
Capital Management, LLC Far East (MSCI EAFE) Index.
OPPENHEIMER CAPITAL
Managed by Allianz AZL OCC Small Cap Capital appreciation At least 65% of its assets in common stocks of growth
Investment Management Opportunity Fund companies with market capitalizations of less than $2 billion
LLC/ Oppenheimer Capital at the time of investment.
LLC
AZL OCC Value Large Value Long-term growth of At least 65% of its total assets in common stocks of
Fund capital and income companies with market capitalizations of more than $5 billion
at the time of investment and prices below the subadvisers
estimate of intrinsic value.
Managed by OpCap OpCap Mid Cap Mid Cap Long-term capital Invests at least 80% of its net assets in equity securities of
Advisers LLC Portfolio appreciation companies with market capitalizations between $500 million
and $15 billion at the time of purchase that the adviser
believes are undervalued in the marketplace.
OPPENHEIMERFUNDS
Managed by Allianz AZL Oppenheimer International Capital appreciation Invests mainly in common stocks of mid and large-cap
Investment Management Global Fund Equity companies in the U.S. and foreign countries, including
LLC/ OppenheimerFunds, countries with developed and emerging markets.
Inc.
AZL Oppenheimer International Long-term capital Common stocks of growth companies that are domiciled
International Growth Equity appreciation outside the U.S. or have their primary operations outside the
Fund U.S., including companies in emerging markets.
AZL Oppenheimer Large Blend High total return Common stocks of U.S. companies of different capitalization
Main Street Fund ranges, currently focusing on large-capitalization issuers.
27
Investment
Management Name of
and Option
Adviser/Subadviser
Managed by Oppenheimer International Long-term capital Invests mainly in common stocks of U.S. and foreign issuers,
OppenheimerFunds, Inc. Global Securities Equity appreciation currently with an emphasis in developed markets.
Fund/VA
Oppenheimer High High-Yield Bonds High level of current Invests mainly in a variety of high-yield fixed-income
Income Fund/VA income securities of domestic and foreign issuers with at least 65%
of total assets in high-yield, lower-grade fixed income
securities commonly known as junk bonds.
Oppenheimer Main Large Blend High total return Invests mainly in common stocks of U.S. companies of
Street Fund/VA (which includes different capitalization ranges, presently focusing on large-
growth in the value capitalization issuers.
of its shares as well
as current income)
PIMCO
Managed by Allianz AZL PIMCO Specialty Exceed the total Invests substantially all assets in derivative instruments
Investment Management Fundamental return of the FTSE based on the Enhanced RAFI1000, backed by a portfolio
LLC/Pacific Investment IndexPLUS Total RAFI 1000 Index of short and intermediate term fixed income instruments.
Management Company Return Fund
LLC
Managed by Pacific PIMCO VIT All Specialty Maximum real return Invests in institutional class shares of the underlying PIMCO
Investment Management Asset Portfolio (Fund of Funds) consistent with Funds and does not invest directly in stocks or bonds of
Company LLC preservation of real other issuers.
capital and prudent
investment
management
PIMCO VIT Specialty Maximum real return Invests in commodity linked derivative instruments backed
CommodityReal consistent with by a portfolio of inflation-indexed securities and other fixed
ReturnTM Strategy prudent investment income securities.
Portfolio management
PIMCO VIT Intermediate- Maximum total At least 80% of its assets in fixed income instruments of
Emerging Markets Term Bonds return, consistent issuers that economically are tied to countries with emerging
Bond Portfolio with preservation of securities markets.
capital and prudent
investment
management
PIMCO VIT Global Intermediate- Maximum total At least 80% of its assets in fixed income instruments of
Bond Portfolio Term Bonds return, consistent issuers in at least three countries (one of which may be the
(Unhedged) with preservation of U.S.), which may be represented by futures contracts.
capital and prudent Invests primarily in securities of issuers located in
investment economically developed countries.
management
PIMCO VIT High High-Yield Bonds Maximum total At least 80% of assets in a diversified portfolio of high-yield
Yield Portfolio return, consistent securities (junk bonds) rated below investment grade, but at
with preservation of least Caa by Moodys or equivalently rated by S&P or Fitch.
capital and prudent May invest up to 20% of total asets in securities
investment denominated in foreign currencies.
management
PIMCO VIT Real Intermediate- Maximum real At least 80% of its net assets in inflation-indexed bonds of
Return Portfolio Term Bonds return, consistent varying maturities issued by the U.S. and non-U.S.
with preservation of governments, their agencies or instrumentalities and
real capital and corporations.
prudent investment
management
PIMCO VIT Large Growth Total return Invests substantially in S&P 500 derivatives, backed by a
StocksPLUS exceeding that of portfolio of fixed income instruments.
Growth and Income the S&P 500
Portfolio
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Investment
Management Name of
and Option
Adviser/Subadviser
Managed by Pacific PIMCO VIT Total Intermediate- Maximum total At least 65% of total assets in a diversified portfolio of fixed
Investment Management Return Portfolio Term Bonds return, consistent income instruments of varying maturities.
Company LLC with preservation of
capital and prudent
investment
management
PRUDENTIAL
Managed by Prudential SP International International Long-term growth of Invests primarily in equity-related securities of foreign issuers
Investments LLC/William Growth Portfolio Equity capital with at least 65% of its total assets in common stocks of
Blair & Company LLC and foreign companies operating or based in at least five
Marsico Capital different countries.
Management LLC
Managed by Prudential SP Strategic Large Growth Long-term growth of At least 65% of total assets in equity and equity-related
Investments LLC/Jennison Partners Focused capital securities of U.S. companies that the adviser believes to
Associates LLC and Growth Portfolio have strong capital appreciation potential.
AllianceBernstein L.P.
SCHRODER
Managed by Allianz AZL Schroder Specialty Capital appreciation Invests at least 80% of its net assets in equity securities of
Investment Management Emerging Markets companies that the subadviser believes to be emerging
LLC/Schroder Investment Equity Fund market issuers. May invest remainder of assets in securities
Management North of issuers located anywhere in the world.
America Inc.
AZL Schroder International Long-term capital At least 80% of net assets in equity securities of small
International Small Equity appreciation capitalization companies located outside the U.S. (generally
Cap Fund with market capitalizations of $3.5 billion or less at the time
of investment) that it believes offer the potential for capital
appreciation.
SELIGMAN
Managed by J. & W. Seligman Smaller- Small Cap Long-term capital At least 80% of net assets in common stocks of value
Seligman & Co. Cap Value Portfolio appreciation companies with smaller market capitalizations (up to $3
Incorporated billion) at the time of purchase by the portfolio.
TARGETPLUS PORTFOLIOS
Managed by Allianz AZL TargetPLUS Model Portfolio Long-term capital Invests primarily in a diversified portfolio of equity and fixed
Investment Management Balanced Fund appreciation with income securities with 45% to 55% allocated to the equity
LLC/First Trust Advisors preservation of capital portfolio and the balance allocated to the fixed income
L.P. and Pacific as an important portfolio. May invest a significant portion of its total assets in
Investment Management consideration securities of non-U.S. companies.
Company LLC
Managed by Allianz AZL TargetPLUS Model Portfolio Total return Invests at least 80% of net assets in common stocks of
Investment Management Equity Fund companies that are identified by a model based on an
LLC/First Trust Advisors allocation of 20% of fund assets in each of five separate
L.P. strategies that seek to provide above-average total return.
Managed by Allianz AZL TargetPLUS Model Portfolio Long-term capital Invests primarily in a diversified portfolio of equity and fixed
Investment Management Growth Fund appreciation income securities with 75% to 85% allocated to the equity
LLC/First Trust Advisors portfolio and the balance allocated to the fixed income
L.P. and Pacific portfolio. May invest a significant portion of its total assets in
Investment Management securities of non-U.S. companies.
Company LLC
AZL TargetPLUS Model Portfolio Long-term capital Invests primarily in a diversified portfolio of equity and fixed
Moderate Fund appreciation income securities with 60% to 70% allocated to the equity
portfolio and the balance allocated to the fixed income
portfolio. May invest a significant portion of its total assets in
securities of non-U.S. companies.
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Investment
Management Name of
and Option
Adviser/Subadviser
TURNER
Managed by Allianz AZL Turner Small Cap Long-term growth of At least 80% of its net assets in common stocks and other
Investment Management Quantitative Small capital equity securities of U.S. companies with small market
LLC/Turner Investment Cap Growth Fund capitalizations that the subadviser believes, based on a
Partners, Inc. quantitative model, have strong earnings growth potential.
Small capitalization companies are defined as companies
with market capitalizations, at the time of purchase, in the
range of companies included in the Russell 2000 Growth
Index.
VAN KAMPEN
Managed by Allianz AZL Van Kampen Large Value Capital growth and Invests at least 80% of net assets in common stocks with the
Investment Management Comstock Fund income potential for capital growth and income. May invest up to
LLC/Van Kampen Asset 25% of total assets in foreign securities.
Management
AZL Van Kampen Specialty Highest possible Invests at least 65% of its total assets in income-producing
Equity and Income income consistent equity securities and also invests in investment grade quality
Fund with safety of debt securities. May invest up to 25% ot total assets in
principal with long- foreign securities.
term growth of
capital as an
important secondary
objective
AZL Van Kampen International Long term capital Invests primarily in a portfolio of equity securities of issuers
Global Franchise Equity appreciation located throughout the world that it believes have, among
Fund other things, resilient business franchises and growth
potential. Normally invests at least 65% of total assets in
securities of issuers from at least three different countries,
which may include the U.S.
AZL Van Kampen Specialty Income and capital Invests at least 80% of assets in equity securities of
Global Real Estate appreciation companies in the real estate industry located throughout the
Fund world, including real estate investment trusts and real estate
operating companies established outside the U.S.
AZL Van Kampen Large Value Income and long- Invests at least 65% of total assets in income-producing
Growth and Income term growth of equity securities, including common stocks and convertible
Fund capital securities; also in non-convertible preferred stocks and debt
securities rated investment grade. May invest up to 25% of
total assets in foreign securities.
AZL Van Kampen Mid Cap Capital growth At least 80% of net assets in common stocks and other
Mid Cap Growth equity securities of mid capitalization growth companies.
Fund
Shares of the Investment Options may be offered in connection with certain variable annuity contracts and variable life
insurance policies of various insurance companies that may or may not be affiliated with us. Certain Investment Options
may also be sold directly to pension and retirement plans that qualify under Section 401 of the Internal Revenue Code. As
a result, a material conflict of interest may arise between insurance companies, owners of different types of contracts and
retirement plans or their participants. Each Investment Options Board of Directors will monitor for the existence of any
material conflicts, and determine what action, if any, should be taken.
We may enter into certain arrangements under which we, or our affiliate Allianz Life Financial Services, LLC, the
principal underwriter for the Contracts, are compensated by the Investment Options advisers, distributors and/or affiliates
for the administrative services and benefits that we provide to the Investment Options. The amount of the compensation
usually is based on the aggregate assets of the Investment Options or other investment portfolios that are attributable to
contracts that we issue or administer. Some advisers may pay us more or less than others. The maximum fee that we
currently receive is at the annual rate of 0.25% of the average aggregate amount invested by us in the Investment Options.
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In addition, our affiliate Allianz Life Financial Services, LLC, may receive Rule 12b-1 fees deducted from certain
Investment Option assets attributable to the Contract for providing distribution and support services to some Investment
Options. Because 12b-1 fees are paid out of an Investment Options assets on an ongoing basis, over time they will
increase the cost of an investment in the Investment Option.
SUBSTITUTION AND LIMITATION ON FURTHER INVESTMENTS
We may substitute another Investment Option for one of the Investment Options you selected for any reason in our sole
discretion. Substitutions may be made with respect to existing investments, the investment of future Purchase Payments,
or both. New or substitute Investment Options may have different fees and expenses, and their availability may be limited
to certain classes of purchasers. We may limit further investment in, or transfers to, an Investment Option if marketing,
tax or investment considerations warrant, or for any reason in our sole discretion. We also may close Investment Options
to allocations of Purchase Payments and/or Contract Value, at any time and at our sole discretion. The fund companies
that sell shares of the Investment Options to us, pursuant to participation agreements, may terminate those agreements and
discontinue offering their shares to us. To the extent required by the Investment Company Act of 1940 or other applicable
law, we will not substitute any shares without notice to you and prior approval of the SEC.
TR AN SF ER S
You can make transfers among the Investment Choices, subject to certain restrictions. Transfers may be subject to a
transfer fee. For more information, see section 7, Expenses Transfer Fee. Also, transfers from the FPAs may be subject
to an MVA. We currently allow you to make as many transfers each Contract Year as you wish. We may change this
practice in the future. There is no minimum required transfer amount. This product is not designed for professional
market timing organizations, other entities or persons using programmed, large, or frequent transfers, and excessive or
inappropriate transfer activity may be restricted.
The following applies to any transfer.
We may choose not to allow you to make transfers during the free look/right to examine period.
Your request for a transfer must clearly state:
which Investment Choices are involved in the transfer; and
how much you wish to transfer.
Transfers from a FPA may be subject to an MVA.
If you elect the Living Guarantees, you can make transfers from the FPAs to the extent that the GAV Fixed Account
Minimum is met (see section 6, Guaranteed Account Value (GAV) Benefit The GAV Fixed Account Minimum).
These transfers may be subject to an MVA unless the transfers are made within 30 days before the end of the Account
Period. In some states you cannot make allocations to the FPAs and they may only be available for GAV Transfers we
make.
After the Income Date, you cannot make a transfer from a fixed Annuity Payment stream to a variable Annuity
Payment stream.
After the Income Date, you can make a transfer from a variable Annuity Payment stream to establish a new fixed
Annuity Payment stream.
Your right to make transfers is subject to modification if we determine, in our sole discretion, that exercise of the right
by one or more Owners is, or may be, to the disadvantage of other Owners. For more information, see the Excessive
Trading and Market Timing discussion in this section.
Transfer instructions apply equally to the accumulation and annuitization portions of the Contract. You cannot make
transfers selectively within different portions of the Contract.
Transfers of Contract Value between Investment Options will not change the allocation instructions for any future
Purchase Payments.
When you make a transfer request, we will process the request based on the Accumulation Unit values and/or Annuity
Unit values next determined after receipt of the request in good order at our Service Center. The Accumulation Unit
values and Annuity Unit values are normally determined at the end of each Business Day and any transfer request
received at or after the end of the current Business Day will receive the next Business Days Accumulation Unit values
and/or Annuity Unit values.
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The Investment Options may, in the future, add policies or change existing policies designed to restrict market timing
activities. For example, Investment Options may impose restrictions on transfers between Investment Options in an
affiliated group of Investment Options if the investment adviser to one or more of the Investment Options determines that
the Owner or his or her designee requesting the transfer has engaged, or is engaging in, market timing or other abusive
trading activities. In addition, an Investment Option may impose a short-term trading fee on purchases and sales within a
specified period. You should review the Investment Options prospectuses regarding any applicable transfer restrictions
and the imposition of any fee to discourage short-term trading. The imposition of these restrictions would occur as a result
of Investment Option restrictions and actions taken by the managers of the Investment Options.
Telephone and Other Electronic Transfers
You can request transfers by telephone, fax, or by website at www.allianzlife.com. We may allow you to authorize
someone else to request transfers by telephone, fax, or website on your behalf. We will accept instructions from either
you or a Joint Owner unless we are instructed otherwise. We will use reasonable procedures to confirm that instructions
given to us by telephone or by website are genuine. If we do not use such procedures, we may be liable for any losses due
to unauthorized or fraudulent instructions. We record all telephone instructions and log all website instructions. We
reserve the right to deny any transfer request submitted by telephone, website, or by fax, and to discontinue or modify the
telephone, fax and/or website transfer privileges at any time and for any reason.
We do not currently accept transfer instructions from you via email or via electronic communications other than by
telephone, fax, or by website. This service may be available to you in the future.
When you make a transfer request by telephone, fax, or by website, we will process the request based on the
Accumulation Unit values next determined after receipt of the request at our Service Center. If you or your authorized
representative have not given instructions to a Service Center representative before the end of the Business Day, even if
due to our delay in answering your call or a delay caused by our telephone, fax and/or computer system, we will consider
the request to be received at or after the end of the current Business Day and the request will receive the next Business
Days Accumulation Unit values.
Please note that telephone, fax and/or the website may not always be available. Any telephone, fax and/or computer
system, whether it is ours, yours, your service providers, or your registered representatives, can experience outages or
slowdowns for a variety of reasons. These outages or slowdowns may delay or prevent our processing of your request.
Although we have taken precautions to help our systems handle heavy use, we cannot promise complete reliability under
all circumstances. If you are experiencing problems, you should make your transfer by writing to our Service Center.
By authorizing transfers by telephone or website, you authorize us to accept and act upon such instructions for transfers
involving your Contract. There are risks associated with telephone and website transactions that do not occur if a written
request is submitted. Anyone authorizing or making such requests bears those risks. You should protect your website
password, because the website is available to anyone who provides your password; we will not be able to verify that the
person providing electronic transfer instructions via the website is you or is authorized by you.
EXCESSIVE TRADING AN D MARKET TIMING
Your ability to make transfers under the Contract is subject to modification if we determine, in our sole discretion, that
the exercise of the transfer privilege may disadvantage or potentially harm the rights or interests of other Owners.
Frequent transfers, programmed transfers, transfers into and then out of an Investment Choice in a short period of time,
and transfers of large amounts at one time (collectively referred to as potentially disruptive trading) may have harmful
effects for other Owners, Annuitants and Beneficiaries. These risks and harmful effects include the following.
Dilution of the interests of long-term investors in an Investment Choice, if market timers or others transfer into the
Investment Choice at prices that are below their true value or transfer out of the Investment Choice at prices that are
higher than their true value.
An adverse effect on portfolio management, such as causing the Investment Choice to maintain a higher level of cash
than would otherwise be the case, or causing the Investment Choice to liquidate investments prematurely.
Increased brokerage and administrative expenses.
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In order to attempt to protect our Owners and the Investment Choices from potentially disruptive trading, we have
adopted certain excessive trading and market timing policies and procedures. Under our excessive trading and market
timing policy, we could modify your transfer privileges for some or all of the Investment Choices. Unless prohibited by
the terms of the Contract or applicable state law, the modifications we may apply include (but are not limited to) the
following.
Limiting the frequency of transfers (for example, prohibit more than one transfer a week, or more than two a month,
etc.).
Restricting the method of making a transfer (for example, requiring that all transfers be sent by first class U.S. mail
and rescinding the telephone, fax or website transfer privileges).
Requiring a minimum time period between each transfer into or out of a particular Investment Choice. Our current
policy, which is subject to change without notice, prohibits round trips with Investment Choices, other than the AZL
Money Market Fund and the AZL FusionPortfolios, within 14 calendar days. Round trips are transfers into and back
out of a particular Investment Choice, or transfers out of and back into a particular Investment Choice.
Not accepting transfer requests made on your behalf by an asset allocation and/or market timing service.
Limiting the dollar amount of any Purchase Payment or transfer request allocated to any Investment Choice at any one
time.
Imposing redemption fees on short-term trading (or implementing and administering redemption fees imposed by one
or more of the Investment Options).
Prohibiting transfers into specific Investment Choices.
Imposing other limitations or restrictions.
We also reserve the right to reject any specific Purchase Payment allocation or transfer request from any person if in the
investment advisers, subadvisers or our judgment, an Investment Choice may be unable to invest effectively in
accordance with its investment objectives and policies.
Currently, we attempt to deter disruptive trading as follows. If a transfer(s) is/are identified as potentially disruptive
trading, we may (but are not required to) send a warning letter. If the conduct continues and we determine that it
constitutes disruptive trading, we will also impose transfer restrictions. Transfer restrictions may include refusing to take
orders by fax, telephone or website and requiring the submission of all transfer requests via first-class U.S. mail. We do
not enter into agreements permitting market timing and would not permit activities determined to be disruptive trading to
continue. We also reserve the right to impose transfer restrictions on a Contract if we determine, in our sole discretion,
that the transfers are disadvantageous to other Owners. We will notify the Owner in writing if we impose transfer
restrictions on the Owner.
We do not include automatic transfers made under any programs we provide, or automatic transfers made under any of
the Contract features, when applying our market timing policy.
We have adopted these policies and procedures as a preventative measure to protect all Owners from the potential effects
of disruptive trading, while also abiding by the Owners legitimate interest in diversifying their investment and making
periodic asset re-allocations based upon their personal situations or overall market conditions. We attempt to protect the
Owners interests in making legitimate transfers by providing reasonable and convenient methods of making transfers that
do not harm other Owners.
We may make exceptions when imposing transfer restrictions if we determine a transfer is appropriate, although it may
technically violate our policies and procedures that are discussed above. In determining whether a transfer is appropriate,
we may, but are not required to, take into consideration the relative size of a transaction, whether the transaction was
purely a defensive transfer into the AZL Money Market Fund, and whether the transaction involved an error or similar
event. We may also reinstate telephone, fax or website transfer privileges after we have revoked them, but we will not
reinstate these privileges if we have reason to believe that they might be used for disruptive trading purposes in the future.
We cannot guarantee the following.
Our monitoring will be 100% successful in detecting all potentially disruptive trading activity.
Revoking telephone, fax or website transfer privileges will successfully deter all potentially disruptive trading.
33
In addition, certain of the Investment Options are available to insurance companies other than us and we do not know
whether those other insurance companies have adopted policies and procedures to detect and deter potentially disruptive
trading, or what their policies and procedures might be.
As a result of the fact that we may not be completely successful at detecting and preventing market timing activities, and
other insurance companies that offer the Investment Options may not have adopted adequate market timing procedures,
there is some risk that market timing activity may occur and negatively affect other Owners.
We may, without prior notice to any party, take whatever action we deem appropriate to comply with or take advantage of
any state or federal regulatory requirement. In addition, orders for the purchase of an Investment Choices shares are
subject to acceptance by that Investment Choice. We reserve the right to reject, without prior notice, any transfer request
into an Investment Choice or allocation of a Purchase Payment to an Investment Choice if the order to purchase the
Investment Choices shares is not accepted for any reason. We have entered into agreements required under SEC
Rule 22c-2 (Rule 22c-2 agreements) whereby, upon request by an underlying fund or its designee, we are required to
provide the underlying fund with information about you and your trading activities into or out of one or more Investment
Options. This information will be provided to the underlying fund or its designee. Under the terms of the Rule 22c-2
agreements, we are required to: (1) provide details concerning every purchase, redemption, transfer, or exchange of
Investment Options during a specified period; and (2) restrict your trading activity if the party receiving the information
so requests. Under certain Rule 22c-2 agreements, if we fail to comply with a request to restrict trading activity, the
underlying fund or its designee may refuse to accept transfers from us until we comply.
We retain some discretion in determining what actions constitute potentially disruptive trading and in determining when
and how to impose trading restrictions. Therefore, persons engaging in potentially disruptive trading may be subjected to
some uncertainty as to when and in what form trading restrictions may be applied, and persons not engaging in potentially
disruptive trading may not know precisely what actions will be taken against a person engaging in potentially disruptive
trading. For example, if we determine a person is engaging in potentially disruptive trading, we may revoke that persons
telephone, fax or website transfer privileges and require all future requests to be sent by first class U.S. mail. In the
alternative, if the disruptive trading affects only a single Investment Choice, we may prohibit transfers into or allocations
of Purchase Payments to that Investment Choice. We will notify the person or entity making the potentially disruptive
trade when we revoke any transfer privileges.
The retention of some level of discretion by us may result in disparate treatment among persons engaging in potentially
disruptive trading, and it is possible that some persons could experience adverse consequences if other persons are able to
engage in practices that may constitute disruptive trading, and that result in negative effects.
DOL LAR COST A VERAG ING (D CA) PROG RAM
The DCA program allows you to systematically transfer a set amount of money each month or quarter from any one
Investment Option to other Investment Options. The Investment Option you transfer from may not be the Investment
Option you transfer to in this program. You cannot dollar cost average to or from a general account Investment Choice.
By allocating amounts on a regularly scheduled basis, as opposed to allocating the total amount at one particular time, you
may be less susceptible to the impact of market fluctuations. You may only participate in this program during the
Accumulation Phase. Generally, the DCA program requires a $1,500 minimum allocation and participation for at least six
months.
All DCA transfers will be made on the tenth day of the month or the next Business Day if the tenth is not a Business Day.
You can elect this program by properly completing the DCA form provided by us.
Your participation in the program will end when any of the following occurs.
The number of desired transfers has been made.
You do not have enough money in the Investment Options to make the transfer (if less money is available, that
amount will be dollar cost averaged and the program will end).
You request to terminate the program (your request must be received at our Service Center by the first of the month to
terminate that month).
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If you participate in the DCA program, there are no fees for the transfers made under this program, we do not currently
count these transfers against the free transfers that we allow, and you will not be charged additional fees for participating
in or terminating from this program. We reserve the right to discontinue or modify the DCA program at any time and for
any reason.
FL EXIBL E REBA LANC ING
You can choose to have us rebalance your account. Once your money has been invested, the performance of the
Investment Options may cause your chosen allocation to shift. Flexible rebalancing is designed to help you maintain your
specified allocation mix among the different Investment Options. The general account Investment Choices are not part of
the flexible rebalancing program. You can direct us to automatically readjust your balance in the Investment Options on a
quarterly, semi-annual or annual basis to return to your selected Investment Option allocations. Flexible rebalancing
transfers will be made on the 20th day of the month or the previous Business Day if the 20th is not a Business Day. If you
participate in the flexible rebalancing program, there are no fees for the transfers made under this program, we do not
currently count these transfers against any free transfers that we allow and you will not be charged additional fees for
participating in or terminating from this program. If your Contract includes the Living Guarantees, the automatic transfers
that we make (GAV Transfers) in and out of the FPAs to support the Living Guarantees may affect your flexible
rebalancing program. We reserve the right to discontinue or modify the flexible rebalancing program at any time and for
any reason. To participate in this program, your request must be received in good order at our Service Center by the
eighth of the month so that we may rebalance your account on the 20th of the month. To terminate your participation in
this program, your request must also be received at our Service Center by the eighth of the month to terminate that month.
F INA NC IAL A DV I S ER S A S SE T AL L O C AT IO N PRO G RAM S
If you have or establish a relationship with a personal financial adviser and the advisory agreement provides that you will
pay all or a portion of your advisers fees out of the Contract, we will, pursuant to written instructions from you in a form
acceptable to us, make a partial withdrawal of the Contract Value to pay for the services of the financial adviser. We will
treat any fee that is withdrawn as a withdrawal under the terms of this Contract. If the Contract is Non-Qualified, the
withdrawal will be treated like any other distribution; it may be included in your gross income for federal tax purposes
and, if any Owner is under age 59, it may be subject to a 10% federal penalty tax. If the Contract is Qualified, the
withdrawal for the payment of fees may not be treated as a taxable distribution if certain conditions are met. You should
consult a tax adviser regarding the tax treatment of the payment of financial adviser fees from your Contract.
We do not set the amount of the fees charged or receive any portion of the fees from your adviser. Any fee that is charged
by your adviser is in addition to the fees and expenses that apply under your Contract. We are not party to the agreement
you have with your adviser. You should ask your adviser for any details about the compensation he or she receives in
connection with your Contract.
Please note that the adviser you engage to provide advice and/or to make transfers for you is not acting on our behalf, but
is acting on your behalf. We do not review or approve the actions of any adviser, and do not assume any responsibility for
these actions. However, we do reserve the right to request and review prior transaction history of any adviser prior to
granting your request to allow the adviser to act on your behalf. If, in our sole discretion, we believe the adviser's trading
history indicates a pattern of excessive trading, we reserve the right to deny that adviser trading authority. If an adviser is
granted trading authority, that adviser is subject to the same limitations applicable to contract owners as stated above.
VOTING PRIVILEG ES
We are the legal owner of the Investment Option shares. However, when an Investment Option solicits proxies in
conjunction with a shareholder vote that affects your investment, we will obtain from you and other affected Owners
instructions as to how to vote those shares. When we receive those instructions, we will vote all of the shares we own
including any shares that we own on our own behalf, in proportion to those instructions. Because of this proportional
voting and because many Owners do not respond to our request for them to provide us with voting instructions, a small
number of Owners may determine the outcome of the vote. Should we determine that we are no longer required to obtain
your voting instructions, we will vote the shares in our own right. Only Owners have voting privileges under the Contract.
Annuitants, Beneficiaries, Payees and other persons have no voting privileges unless they are also Owners.
35
We determine your voting interest in an Investment Option as follows.

You are permitted to cast votes based on the dollar value of the Investment Options shares that we hold for your
Contract in the corresponding subaccount. We calculate this value based on the number of Accumulation/Annuity
Units allocated to your Contract on the record date and the value of each unit on that date. We count fractional votes.
We will determine the number of shares that you can vote.
You will receive any proxy materials and a form to give us voting instructions as well as periodic reports relating to
the Investment Options in which you have an interest.
5. OUR GENERAL ACCOUNT

Our general account consists of all of our assets other than those in our separate accounts. We have complete ownership
of all assets in our general account and we use these assets to support our insurance and annuity obligations other than
those funded by our separate accounts. These assets are subject to our general liabilities from business operations. Subject
to applicable law, we have sole discretion over the investment of the assets of our general account.
We have not registered our general account as an investment company under the Investment Company Act of 1940, nor
have we registered interests in our general account under the Securities Act of 1933. As a result, the SEC has not
reviewed the disclosures in this prospectus relating to our general account.
Currently, the only general account Investment Choices we offer under this Contract during the Accumulation Phase are
the Fixed Period Accounts (FPAs). Any amounts you allocate to the FPAs, as well as any amounts we transfer to the
FPAs under the Living Guarantees become part of our general account. Additionally, any amounts that you allocate to
provide fixed Annuity Payments during the Annuity Phase become part of our general account. We may change the terms
of the general account Investment Choices in the future. Please contact us for the most current terms.
F I XED PER IOD A CCOUNT S (F PA s)
FPAs are a type of Investment Choice available under our general account. We will credit any amount in the FPAs with
interest. FPAs are available only during the Accumulation Phase. Money removed from an FPA may be subject to an
MVA, which may increase or decrease your Contract Value and/or the amount of the withdrawal or transfer.
FPAs have Account Periods of anywhere from one to ten years. An Account Period is the amount of time we expect
money to remain in an FPA. Only one FPA of a specific Account Period is available for Purchase Payments or transfers
in each Contract Year.
You can allocate up to 50% of any Purchase Payment to an FPA. However, in some states the FPAs may only be
available for GAV Transfers we make under the Living Guarantees. In addition, under the Living Guarantees we may
transfer more than 50% of the total Purchase Payments to the FPAs beginning on the second Contract Anniversary. If you
allocate any portion of the initial Purchase Payment to an FPA on the Issue Date, we will apply that amount to an FPA
with a ten-year Account Period. We will also apply any additional transfers or portions of Purchase Payments allocated to
an FPA during the first Contract Year to this ten-year Account Period. Similarly, a nine-year Account Period is available
for allocations in the second Contract Year, an eight-year Account Period is available in the third year, and so on. After
the tenth Contract Year, there are five-year rolling Account Periods. In the 11th through the 15th Contract Years,
allocations can be made to an FPA with an Account Period equal to one plus the remaining number of complete Contract
Years to the end of the 15th Contract Year. For example, in the 11th Contract Year a five-year Account Period is
available; in the 12th Contract Year a four-year Account Period is available, and so on until the 16th Contract Year when
a new five-year Account Period is again available. Please see the following table for more information.
Contract FPA Account Contract FPA Account Contract FPA Account
Year Period Year Period Year Period
1 10 years 6 5 years 11 5 years
5 6 years 10 1 year 15 1 year
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Allocations to the FPAs are credited with interest rates that vary based on the Account Period and when the allocation
was made. Generally, the longer the Account Period, the higher the interest rate. The interest rate on the FPAs will be
greater than zero, but it could be less than 1% and it could be less than the interest rate applied to the FPA guaranteed
minimum value (see the Market Value Adjustment (MVA) discussion later in this section).
Generally, the initial interest rate is set on the date the first allocation is made to an FPA and will remain in effect until the
second Contract Anniversary following the allocation. On that Contract Anniversary, the amount initially allocated to the
FPA (plus interest) is then credited with the interest rate that we declare for all FPAs with the same Account Period and
duration. This interest rate remains in effect for that entire Contract Year. On every Contract Anniversary we can set a
new rate for the next Contract Year for all FPAs with the same Account Period and duration. For FPAs with a one-year
Account Period, the interest rate is set at the start of the Account Period and is effective for any amounts allocated to the
FPAs during the Contract Year. The interest rate for new allocations to an FPA may be different from the interest rate
declared for amounts already in the FPAs. For example, new transfers to an FPA later in the third Contract Year may
receive a different interest rate than the rate applied to amounts that were allocated to an FPA earlier in that Contract
Year.
Any withdrawal or transfer (whether through your request or through the GAV Transfers we make to maintain the Living
Guarantees) from an FPA may be subject to a Market Value Adjustment. Any MVA we make, whether it is upon partial
withdrawal/transfer or complete withdrawal/transfer, is also subject to a minimum and a maximum.
PARTIAL WITHDRAWALS DURING THE ACCUMULATION PHASE: Unless you instruct us otherwise, we will
take any partial withdrawal proportionately from the Investment Options. If the Contract Value in the Investment Options
is less than the partial withdrawal you request, the remaining amount will come from the FPAs subject to the GAV Fixed
Account Minimum. We will account for transfers or partial withdrawals from the FPAs on a first-in, first-out (FIFO)
basis. That is, a transfer or a partial withdrawal from the FPAs will reduce the Contract Value in the oldest FPA, then the
next oldest, and so on.
IF YOU ELECT THE LIVING GUARANTEES: Your ability to make transfers and/or partial withdrawals from the
FPAs is subject to the GAV Fixed Account Minimum. You can transfer or make a partial withdrawal from the FPAs that
would reduce the Fixed Account Value in the FPAs below this minimum by resetting the GAV Benefit (see The GAV
Fixed Account Minimum and Resetting the GAV Benefit discussions in section 6, Guaranteed Account Value (GAV)
Benefit).
IF YOU DONT ELECT THE LIVING GUARANTEES: If you request a partial transfer or partial withdrawal from the
FPAs and the amount you request to receive is greater than the Fixed Account Value in the FPAs after adjustment for any
applicable MVA, we will treat your request as a request for a complete transfer or full withdrawal from the FPAs.
Additionally, we will treat any request for a partial withdrawal from the FPAs that would reduce the Fixed Account Value
in the FPAs below $1,000 as a request for a full withdrawal from the FPAs.
FOR CONTRACTS ISSUED IN MINNESOTA: We hold amounts allocated to the FPAs in a nonunitized separate
account that we established under Minnesota insurance law. This separate account provides an additional measure of
assurance that we will make full payment of amounts due under the FPAs. State insurance law prohibits us from charging
this separate account with the liabilities of any other separate account or of our general business. We own the assets of
this separate account as well as any favorable investment performance of those assets. You do not participate in the
performance of the assets held in this separate account. We guarantee all benefits relating to your value in the FPAs. This
guarantee is based on the continued claims paying ability of Allianz Life.
FOR CONTRACTS ISSUED IN ALABAMA, OREGON, PENNSYLVANIA, UTAH AND WASHINGTON: The FPAs
are not directly available to you and they are not subject to a Market Value Adjustment. The FPAs are only available to
receive GAV Transfers that we make during the Accumulation Phase if your Contract includes the Living Guarantees.
You cannot allocate Purchase Payments to the FPAs and you cannot transfer Contract Value to or from the FPAs. You
also cannot request withdrawals directly from the FPAs. If your Contract includes Living Guarantees and you request a
partial withdrawal, we will take the partial withdrawal proportionately from the Investment Options. If the amount in the
Investment Options is less than the partial withdrawal you request, the remaining amount will come from the FPAs on a
FIFO basis.
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M ARK ET VALU E A DJU ST MENT (M VA)
An MVA is an adjustment we make for transfers or withdrawals from an FPA that occur at any time other than 30 days
before the end of an Account Period. There will be no MVA for transfers or withdrawals that occur within 30 days before
the end of the Account Period. The end of the Account Period will first occur on your tenth Contract Anniversary and
then on every fifth Contract Anniversary after that (for example, the 15th Contract Anniversary, the 20th Contract
Anniversary, etc.). You will receive a notice mailed at least 30 days in advance of the period in which we will not apply
an MVA. We will allocate any amounts (including the GAV Fixed Account Minimum, if applicable) for which we have
not received instructions at the end of the Account Period to another FPA with a five-year Account Period.
We also will not apply MVAs to amounts withdrawn for withdrawal charges, the contract maintenance charge, deductions
we make to reimburse ourselves for premium taxes that we pay, death claims, or for amounts you receive if you return the
Contract under the free look/right to examine provision. We determine any withdrawal charges based on market value
adjusted withdrawals.
Upon a transfer or withdrawal of Contract Value in the FPAs, we will apply the MVA to the amount of the withdrawal or
transfer. At the time of transfer or withdrawal, the MVA formula compares the interest rate that applies to the FPA from
which amounts are being removed to the current interest rate offered on new allocations to an FPA of the same Account
Period. An MVA can be either positive or negative depending on the interest rate currently offered on an FPA as shown
in the following table. Any MVA we make, whether it is upon partial withdrawal/transfer or complete
withdrawal/transfer, is also subject to a minimum and a maximum.
If the interest rate on the FPA from which then the
amounts are being removed is MVA is
Less than the current interest rate for new
allocations to an FPA of the same Account Period negative
Equal to the current interest rate for new
allocations to an FPA of the same Account Period zero
Greater than the current interest rate for new
allocations to an FPA of the same Account Period positive
The MVA formula is [(1+I) / (1+J)]N where:
I = Current interest rate earned in the FPA from which amounts are being transferred or withdrawn.
J = Current interest rate for new allocations to an FPA with an Account Period equal to the remaining term (rounded
up) in the current Account Period.
N = Number of days from the date of transfer/withdrawal from the FPA to the next Contract Anniversary divided by
365, plus the number of whole years remaining in the Account Period.
The MVA is also subject to a minimum and a maximum. The minimum and maximum apply upon partial
withdrawal/transfer or complete withdrawal/transfer.
The MVA minimum is equal to the greater of (a) or (b), with the result then divided by (c), where:
(a) = The FPA guaranteed minimum value.
(b) = All allocations to the FPAs less previous partial withdrawals (including any withdrawal charges) and transfers
from the FPAs.
(c) = The Fixed Account Value.
The MVA maximum is equal to (a) divided by the greater of (b) or (c), where:
(a) = The Fixed Account Value.
(b) = The FPA guaranteed minimum value.
(c) = All allocations to the FPAs, less previous partial withdrawals (including any withdrawal charges) and transfers
from the FPAs.
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The FPA guaranteed minimum value is equal to:

87.5% of all allocations to the FPAs, less all partial withdrawals (including any withdrawal charges) and transfers
from the FPAs, accumulated at the FPA guaranteed minimum value interest rate (which is also the state nonforfeiture
rate) specified in the Contract (which is currently 1%-3% depending on your state).
Plus
Upon a full withdrawal, the amount of the withdrawal charge that we assign to the FPAs. We base this amount on the
percentage of Contract Value in the FPAs (for example, if 25% of the Contract Value is in the FPAs, then upon a full
withdrawal we would assign 25% of any withdrawal charge to the FPAs).
All previous partial withdrawals and transfers in this calculation of the FPA guaranteed minimum value do not reflect any
MVA.
MVA Examples
The following examples show the effect of the MVA on a Contract.
You purchase a February 2007 Contract with an initial Purchase Payment of $100,000 on January 1. You do not select
the Living Guarantees. The FPA guaranteed minimum value interest rate is 3%.
You allocate $10,000 to an FPA with a ten-year Account Period and an interest rate of 6%.
You make no additional Purchase Payments.
On July 1 of your sixth Contract Year, your Fixed Account Value in the FPA is $13,774.58. The sixth Contract Year
is not a leap year.
The withdrawal charge period for your initial Purchase Payment has not expired by the sixth Contract Year, so there
will be a withdrawal charge of 4% on Purchase Payments withdrawn from the Contract during the sixth Contract
Year.
The Contract Value on the day of (but before) the withdrawal in the sixth Contract Year is $137,745.77.
The partial withdrawal privilege for the sixth Contract Year is 12% of total Purchase Payments = 12% x $100,000 =
$12,000.
The withdrawal charge for full withdrawals during the sixth Contract Year is 4% of total Purchase Payments = 4% x
$100,000 = $4,000.
The percentage of Contract Value in the FPAs in the sixth Contract Year = $13,774.58 / $137,745.77 = 10%.
The FPA guaranteed minimum value on July 1 of the sixth Contract Year is equal to:
87.5% of all allocations to the FPAs less partial withdrawals and transfers accumulated at the FPA guaranteed
minimum value interest rate for 5 years and 181 days =
((87.5% x $10,000) $0) x 1.03 ((181/365) + 5) =.............................................................................................................. $10,293.43
Plus
Upon full withdrawal, the amount of the withdrawal charge that we assign to the FPAs (which is the percentage of
Contract Value in the FPAs) = 10% x $4,000 = ......................................................................................................... + 400.00
$10,693.43
The MVA minimum on July 1 of the sixth Contract Year is equal to:
The greater of (a) the FPA guaranteed minimum value, or (b) all allocations to the FPAs less partial withdrawals and
transfers, divided by (c) the Fixed Account Value = $10,693.43 / $13,774.58 = ........................................................... 0.776136
The MVA maximum on July 1 of the sixth Contract Year is equal to:
(a) The Fixed Account Value divided by the greater of (b) the FPA guaranteed minimum value, or (c) all allocations to
the FPAs less partial withdrawals and transfers = $13,774.58 / $10,693.43 =.............................................................. 1.288135
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Example of a positive MVA on full withdrawal from the Fixed Period Account on July 1 of the sixth Contract
year:
Assume that the current interest rate for an FPA with a five-year Account Period is 5%.
The MVA on July 1 of the sixth Contract Year is: [1.06 / 1.05] ((184/365) + 4) = 1.043618.
Because the MVA is less than the MVA maximum (1.288135), we will use the MVA to calculate the amount of the
withdrawal after application of the MVA, which is $13,774.58 x 1.043618 = $14,375.39.
Next we compute the withdrawal charge. The partial withdrawal privilege allows you to withdraw $12,000 per Contract
Year without incurring a withdrawal charge. The amount of the withdrawal subject to the withdrawal charge = $14,375.39
- $12,000 = $2,375.39. The amount of the withdrawal charge = $2,375.39 x 4% = $95.02.
In other words, the amount we would withdraw from the FPA is $13,774.58, and the amount you would receive after
application of the MVA and deduction of the withdrawal charge = $14,375.39 - $95.02 = $14,280.37.
Example of a negative MVA on a partial withdrawal or transfer from a Fixed Period Account on July 1 of the
sixth Contract Year:
Assume that the current interest rate for an FPA with a five-year Account Period is 7%. You request a partial withdrawal
of $4,000 from the FPA.
The MVA on July 1 of the sixth Contract Year is: [1.06 / 1.07] ((184/365) + 4) = 0.958589.
Because the MVA is more than the MVA minimum (0.776136), we will use the MVA to calculate the amount we will
withdraw from the FPA in order to send you a check for $4,000 after we apply the MVA. The amount we would
withdraw from the FPA is: $4,000 / 0.958589 = $4,172.80.
Next, we would compute the withdrawal charge. Because the partial withdrawal privilege allows you to withdraw
$12,000 per Contract Year without incurring a withdrawal charge, there will be no withdrawal charge for this partial
withdrawal. In other words, we would withdraw $4,172.80 from the FPA, and you would receive $4,000 after application
of the MVA.
If you had instead requested we transfer $4,000 from the FPA to the Investment Option(s), we would apply the MVA to
the amount transferred, instead of applying the MVA to the Fixed Account Value in the FPA. The amount we would
transfer into the Investment Options is: $4,000 x 0.958589 = $3,834.36. In other words, we would transfer $4,000 out of
the FPA, and we would transfer $3,834.36 into your selected Investment Option(s).
NOTE REGARDING APPLICATION OF MVAs TO GAV TRANSFERS: We will not apply MVAs to GAV Transfers
out of the FPAs initiated by us, effective for all Contracts issued on or after December 1, 2006 or such later date as this
change is approved in your state. For Contracts issued before this date, you can opt out of having MVAs applied to GAV
Transfers from the FPAs. An opt out will be effective as of the Business Day your request is received in good order at our
Service Center.
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6. GUARANTEED ACCOUNT VALUE (GAV) BENEFIT

Your Separate Account Value will increase or decrease depending on the performance of the underlying Investment
Options you selected. Depending on market conditions, you can gain or lose value in the Investment Options, including
your principal. However, for Contracts with the Living Guarantees, the GAV Benefit is intended to provide a level of
protection for the principal you invested five or more years ago and to lock in any investment gains from five or more
Contract Anniversaries ago.
At Contract issue, you can select either a Contract with Living Guarantees or a Contract without Living Guarantees. If
you do not make a selection, the Living Guarantees will apply to your Contract. After the Issue Date, the Living
Guarantees cannot be added to or removed from your Contract. If you select a Contract with the Living Guarantees,
your Contract will provide a long term GAV Benefit during the Accumulation Phase. There are no additional fees or
charges for the Living Guarantees. To maintain the guarantee, we will periodically transfer amounts between your
selected Investment Options and the FPAs according to a mathematical model (see the GAV Transfers discussion later
in this section).
The GAV Benefit guarantees that, beginning on your fifth Contract Anniversary (and on each subsequent Contract
Anniversary until the Income Date that you take a Full Annuitization or Contract termination) your Contract Value will at
least equal the GAV established five years ago, less all GAV adjusted partial withdrawals taken in the last five years. If
your Contract Value is less than this guaranteed amount on the fifth and each subsequent Contract Anniversary, we will
make a payment to your Contract equal to that difference.
You do not have any protection under the GAV Benefit unless you hold the Contract for at least five years. Your
Purchase Payments are not protected under the GAV Benefit until we have had them for at least five years. If you
think that you may terminate the Contract or take a Full Annuitization before you have held the Contract for at
least five years, you should consider whether purchasing this Contract with the Living Guarantees is in your best
interest.
Assuming no partial withdrawals, the GAV Benefit has the effect of guaranteeing that, beginning with your fifth Contract
Anniversary (and on each subsequent anniversary until the Income Date that you take a Full Annuitization or Contract
termination), your Contract Value will be at least equal to the initial GAV, or the GAV from any Contract Anniversary
that occurred at least five years ago. This type of guarantee is sometimes referred to as a high water mark. For example,
assuming no withdrawals, on your 12th Contract Anniversary, the GAV Benefit guarantees that your Contract Value will
be at least the highest GAV established on the Issue Date, or on any Contract Anniversary, up to and including, the
seventh Contract Anniversary, that is, the high water mark from that period. However, the GAV Benefit does not
provide any protection until the fifth Contract Anniversary. In addition the GAV does not lock in any gains until
five years after they occur, and the GAV does not automatically lock in any gains that occur between
anniversaries.
As noted above, if on a Contract Anniversary, your Contract Value is less than the GAV established five years ago, we
will pay into your Contract an amount equal to that difference. We will allocate this amount to your Investment Options
in proportion to the amount of Separate Account Value in each of the Investment Options on the date of allocation. We
refer to the application of this payment as a True Up. Because the True Ups increase your Contract Value, they will also
increase the total dollar amount (but not the percentage) of the M&E charge you pay.
An additional Purchase Payment will immediately increase your Contract Value, but does not become part of the
value guaranteed by the GAV Benefit until it is at least five years old. Therefore, a large additional Purchase
Payment may diminish the advantage of the GAV Benefit by decreasing the likelihood that you would receive a
True Up to your Contract. For example, if on the fifth Contract Anniversary your Contract Value is less than the GAV
from five years ago, then we True Up your Contract Value to equal that GAV. If, however, you made a large additional
Purchase Payment in the fourth Contract Year that increases your Contract Value on the fifth Contract Anniversary so
that it is greater than the GAV from five years ago, then we would not make a True Up to your Contract. To get the
maximum benefit from this guarantee, you may want to consider purchasing a new Contract with the additional Purchase
Payment. This example assumes you take no partial withdrawals. Any withdrawals you take may reduce the GAV by an
amount greater than the withdrawal itself. If the Contract Value at the time of withdrawal is greater than the GAV,
41
the GAV will be reduced by the dollar amount of the withdrawal. If the Contract Value at the time of withdrawal
is less than the GAV, the GAV will be reduced by more than the withdrawal amount.
Income Date. (For more information see section 2, The Annuity Phase.) Upon such a Full Annuitization the FPAs will no
longer be available to you and you will no longer receive any True Ups under the Living Guarantees.
C ALCUL AT ING TH E GA V
The initial GAV is equal to all Purchase Payments received during the first 90 days of your Contract, less any GAV
adjusted partial withdrawals taken during this period. Adjusted partial withdrawals include withdrawals and any amounts
applied to Partial Annuitizations. Additional Purchase Payments will increase the GAV on a dollar-for-dollar basis, but
partial withdrawals and Partial Annuitizations will decrease the GAV proportionately. We also recalculate the GAV on
every Contract Anniversary as follows.
On the first Contract Anniversary, the GAV is equal to the greater of A or B, where:
A = The initial GAV, plus any additional Purchase Payments received during the remainder of the first Contract
Year and minus any GAV adjusted partial withdrawals taken during the remainder of the first Contract Year.
B = Your Contract Value on the first Contract Anniversary.
On the second and any subsequent Contract Anniversaries, the GAV is equal to the greater of C or D, where:
C = The GAV from the previous Contract Anniversary plus any additional Purchase Payments received in the
previous Contract Year and minus any GAV adjusted partial withdrawals taken in the previous Contract Year.
D = Your Contract Value on that Contract Anniversary.
For each withdrawal or traditional Partial Annuitization taken before the second Contract Anniversary, a GAV adjusted
partial withdrawal is equal to: a x b
For each withdrawal or traditional Partial Annuitization taken on or after the second Contract Anniversary, a GAV
adjusted partial withdrawal is equal to: c + (d x b)
GMIBPA x GAV1
For GMIB Partial Annuitizations, a GAV adjusted partial withdrawal is equal to:
GMIB
(a) = The amount of Contract Value (before any MVA) applied to a traditional Partial Annuitization or withdrawn
(including any applicable withdrawal charge).
(b) = The greater of one, or the ratio of (e) divided by (f) where:
(e) = The GAV on the day of (but before) the traditional Partial Annuitization or partial withdrawal.
(f) = The Contract Value on the day of (but before) the traditional Partial Annuitization or partial withdrawal,
adjusted for any applicable MVA.
(c) = The amount of the partial withdrawal (before any MVA) that, together with any other previous partial
withdrawals (before any MVA) taken during the Contract Year, does not exceed 12% of total Purchase
Payments received (the partial withdrawal privilege). However, if you take a traditional Partial Annuitization,
the entire amount of any Contract Value (before any MVA) applied to the traditional Partial Annuitization will
be included in part (d) of this formula.
(d) = The remaining amount of the partial withdrawal, including any applicable withdrawal charge, but before any
MVA.
GMIBPA = The amount of any GMIB value applied to a GMIB Partial Annuitization.
GMIB = The GMIB value on the day of (but before) the GMIB Partial Annuitization.
GAV1 = The GAV on the day of (but before) the GMIB Partial Annuitization.
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GAV Example
You purchase a February 2007 Contract and select the Living Guarantees. You make only one initial Purchase
Payment of $100,000. You make no additional Purchase Payments. Therefore, the calculations of the GAV that
follows will not include reference to additional Purchase Payments.
You take no partial withdrawals or Partial Annuitizations. Therefore, the calculations of the GAV that follows will
only take into account the previous GAV and the current Contract Value on the Contract Anniversary. For information
on how these calculation would be effected by a partial withdrawal, please see Appendix D.
The Contract Value on the first Contract Anniversary is $120,000; on the second Contract Anniversary it is $115,000;
on the third Contract Anniversary it is $119,000; and on the fourth Contract Anniversary it is $121,000.
The initial GAV .................................................................................................................................................................... $100,000
The GAV on the first Contract Anniversary equals the greater of: (A) the initial GAV, which is the initial Purchase
Payment of $100,000; or (B) the Contract Value on the first Contract Anniversary, which is $120,000........................ $120,000
The GAV on the second Contract Anniversary equals the greater of: (C) the GAV from the first Contract Anniversary
($120,000); or (D) the Contract Value on the second Contract Anniversary, which is $115,000 .................................. $120,000
The GAV on the third Contract Anniversary equals the greater of: (C) the GAV from the second Contract Anniversary
($120,000); or (D) the Contract Value on the third Contract Anniversary, which is $119,000 ....................................... $120,000
The GAV on the fourth Contract Anniversary equals the greater of: (C) the GAV from the third Contract Anniversary
($120,000); or (D) the Contract Value on the third Contract Anniversary, which is $121,000 ....................................... $121,000
Applying the GAV Benefit
On the fifth Contract Anniversary the Contract Value is $105,000. The initial GAV established five years ago is
$100,000. The fifth anniversary Contract Value is greater than the initial GAV, so there is no True Up on the fifth
Contract Anniversary.
On the sixth Contract Anniversary the Contract Value is $108,000. The GAV established five years ago on the first
Contract Anniversary is $120,000. The sixth anniversary Contract Value is less than the GAV from the first Contract
Anniversary, so we will True Up the Contract Value to equal this amount by applying $12,000 to the Investment
Options on the sixth Contract Anniversary.
On the seventh Contract Anniversary the Contract Value is $122,000. The GAV from five years ago (the second
Contract Anniversary) is $120,000. The seventh anniversary Contract Value is greater than the GAV established five
years ago on the second Contract Anniversary so there is no True Up on the seventh Contract Anniversary.
Application of the GAV Benefit in tabular form:
Contract Value Amount of GAV
guaranteed under the True Up (does not
GAV Benefit (does not apply until the 5th Contract Value
Contract apply until the 5th Contract after any GAV
Value GAV Contract Anniversary) Anniversary) True Up
Issue $100,000 $100,000 - - $100,000
1st Contract Anniversary $120,000 $120,000 - - $120,000
2nd Contract Anniversary $115,000 $120,000 - - $115,000
3rd Contract Anniversary $119,000 $120,000 - - $119,000
4th Contract Anniversary $121,000 $121,000 - - $121,000
5th Contract Anniversary $105,000 $121,000 $100,000 None $105,000
6th Contract Anniversary $108,000 $121,000 $120,000 $12,000 $120,000
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GA V TR AN SF ER S
There is no additional charge for the GAV Benefit. However, to make this guarantee available, we monitor your Contract
daily as it relates to the GAV and periodically transfer amounts between your selected Investment Options and the FPAs
(GAV Transfers). You will still have complete discretion over the selection of and allocation to the Investment Options
for any portion of your Contract Value that is not required to be in the FPAs. Selecting Investment Options that have a
higher volatility is likely to result in changes to Contract Value that, if negative, will, in turn increase the amount and/or
frequency of GAV Transfers to the FPAs.
We will transfer amounts between the Investment Options and the FPAs according to a mathematical model. This
mathematical model will not change once you purchase a Contract, but we may use a different model for Contracts we
issue in the future. We will transfer amounts to the FPAs proportionately from all of your selected Investment Options.
GAV Transfers from the FPAs to the Investment Options will be allocated according to your most recent allocation
instructions. During the first two Contract Years, the Fixed Account Value immediately after any GAV Transfer to the
FPAs is limited to 50% of total Purchase Payments received, but we may transfer more than 50% of your total Purchase
Payments to the FPAs beginning on the second Contract Anniversary. GAV Transfers are not subject to any transfer fee
and do not count against any free transfers we allow.
The mathematical model we use to determine GAV Transfers includes a number of interrelated factors. The following
table sets forth the most influential of these factors and indicates how each one by itself could trigger a GAV Transfer.
Change In One Factor, Assuming All Other Factors Remain Constant
Factor Direction of the GAV Transfer
Contract Value increases To the Investment Options
GAV increases To the FPAS
Credited interest rate on the FPAs increases To the Investment Options
Time until application of the GAV Benefit decreases To the FPAS
The amount of the GAV Transfer will vary depending on the magnitude and direction of the change in these factors and
their impact on your Contract Value. Most importantly, GAV Transfers out of the Investment Options into the FPAs
occur as the Contract Value falls relative to the GAV. GAV Transfers to the FPAs generally first occur when the Contract
Value drops below the most recently established GAV by an amount that typically ranges between 1% to 4%. If the
Contract Value continues to fall, more GAV Transfers to the FPAs will occur. The amount of the first GAV Transfer to
the FPAs will typically be significant, and will involve a transfer to the FPAs of an amount that ranges between 39% and
44% of your Contract Value. Subsequent transfer amounts to the FPAs typically range between 6% and 10% of your
Contract Value. Concentrating Contract Value in Investment Options with higher volatility is likely to result in greater
changes in Contract Value relative to the GAV. If those changes are negative, they would, in turn, result in higher
amounts of and/or more frequent GAV Transfers to the FPAs. In addition, as the time remaining until application of the
GAV True Up shortens, the frequency and amount of GAV Transfers to the FPAs will increase, particularly in poorly
performing markets.
Transactions you make may also affect the number of GAV Transfers including:
additional Purchase Payments,
partial withdrawals, and
Partial Annuitizations.
Additional Purchase Payments, withdrawals and Partial Annuitizations will change the Contract Value relative to the
GAV, and may result in additional GAV Transfers.
44
When a GAV Transfer occurs, we allocate the transferred Contract Value to the available FPA. In general, the Contract
Value allocated to the FPA will remain in the FPA until the performance of your Investment Options recovers sufficiently
to support the guarantees provided by the GAV Benefit. It can be expected that, in some instances, Contract Value will
transfer out of the FPAs more slowly than it was transferred in, particularly as the time until the application of the GAV
True Up shortens. As this time shortens:
GAV Transfers to the FPAs become more likely, and
Contract Value relative to the GAV must increase in order for GAV Transfers from the FPAs to occur.
After the second Contract Anniversary, it is possible that substantially all of your Contract Value (for example, more than
95%) will be in the FPAs, especially approaching a Contract Anniversary when we may need to True Up your Contract
Value to equal the GAV. This can be true even if your Contract Value exceeds the GAV.
The Daily Rebalancing Formula Under the Mathematical Model: As noted above, to limit our exposure under the
GAV Benefit, we transfer Contract Value from the Investment Options to the FPAs, to the extent called for by a
mathematical model that will not change once you purchase the Contract. We do this in order to minimize the need to
provide a True Up (for example, we will pay into your Contract an amount by which the Contract Value falls short of the
GAV as of the Contract Anniversary date when that GAV becomes available), or to reduce the amount of any True Up
that is required. (Generally, amounts allocated to the Investment Options have a greater potential for gain or loss than
amounts allocated to the FPAs.) We will determine a GAV for each Contract Anniversary and we may need to provide a
True Up to any GAV five or more Contract Years after it was established. When a True Up becomes more likely,
including when your Contract Value is less than any GAV, the mathematical model will tend to allocate more Contract
Value to the FPAs. If, on the other hand, the Contract Value is much higher than each of these GAVs, then a True Up
may not be necessary, and therefore, the mathematical model will tend to allocate more Contract Value to the Investment
Options.
Each Business Day the mathematical model computes a "target allocation," which is the portion of the Contract Value
that is to be allocated to the Investment Options.
The target allocation depends on several factors the Owner's current Contract Value as compared to the Owner's GAV,
the time until the GAV becomes available, and the rate credited to the FPAs. However, as time passes, these factors
change. Therefore, the target allocation changes from one Business Day to the next.
The mathematical model could theoretically call for a daily reallocation of Contract Value so that the Owner's actual
allocation between the Investment Options and FPAs always equals that Owner's target allocation. However, to avoid the
constant reallocations that this approach would require, the model calls for a rebalancing only when the target allocation
differs sufficiently from a baseline allocation, which is the target allocation determined at issue or upon the most recent
GAV Transfer.
In other words, at issue, the target and baseline allocations are the same; on each Business Day going forward the target
allocation will change with the Contracts changing characteristics, while the baseline allocation will not change until the
first GAV Transfer. When the target allocation to the Investment Options differs from the baseline allocation to the
Investment Options by more than a specified margin, a GAV Transfer takes place that makes the Owners actual
allocation equal to the target allocation, and the mathematical model establishes a new baseline allocation to the
Investment Options equal to the target allocation at the time of the transfer for use in future comparisons.
In practice, we find that for a newly-issued Contract, no GAV Transfer to the FPAs will occur until the target allocation to
the Investment Options has fallen to about 60% of Contract Value. Therefore, the initial GAV Transfer will transfer
enough Contract Value so that approximately 40% of the Contract Value will be in the FPAs after the GAV Transfer.
Once the first GAV Transfer has occurred, if the target allocation to the Investment Options rises above the baseline
allocation by more than the specified margin, a GAV Transfer will transfer Contract Value from the FPAs to the
Investment Options. If the target allocation to the Investment Options falls below the baseline allocation by more than the
specified margin, the GAV Transfer will transfer Contract Value from the Investment Options to the FPAs. As with the
initial GAV Transfer, a subsequent GAV Transfer results in the establishment of a new baseline allocation equal to the
target allocation at the time of the transfer for use in future comparisons. In practice, we find that GAV Transfers after the
first typically range between 6% and 10% of the Contract Value.
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The specified margin is set on the Issue Date and cannot be changed for the life of a Contract. (We may, however, change
the specified margin for Contracts that we issue in the future.)
See the SAI for more detail regarding the workings of the mathematical model, including the formula used to compute the
target allocation on a daily basis.
We will transfer Contract Value from the Investment Options to the FPAs, and from the FPAs to the Investment
Options, according to the mathematical model in order to support the Living Guarantees. You should view the
GAV Benefit as a way to permit you to invest in the Investment Options to the extent permitted by the
mathematical model, while still having your principal and some of your investment gains protected to the extent
provided by the GAV Benefit. You should not view the GAV Benefit as a market timing or other type of
investment program designed to enhance your earnings under the Contract. If we make transfers from your
chosen Investment Options to the FPAs during a market downturn, less (or potentially none) of your Contract
Value will be available to participate in any upside potential of the Investment Options if there is a subsequent
recovery. This means that if most or all of your Contract Value is allocated to the FPAs, a subsequent market
recovery will benefit only that portion, if any, of your Contract Value which remains in the Investment Options. If
a recovery is sustained enough to result in amounts being transferred back from the FPAs into your selected
Investment Options, progressively more of your Contract Value may be able to participate in the recovery, but the
Contract Value as a whole will always recover more slowly than had it been more fully allocated to the Investment
Options. This may potentially provide less Contract Value to you than if your Contract did not include the Living
Guarantees.
TH E GA V F IXED ACCO UNT MINIMU M
The GAV Fixed Account Minimum is the amount we require to be kept in the FPAs to maintain the guarantee protection
provided by the GAV Benefit. You can transfer amounts into or out of the FPAs subject to the GAV Fixed Account
Minimum. You can only make a transfer or take a partial withdrawal from the FPAs that would reduce the amount in the
FPAs below this minimum by resetting the GAV Benefit. If you allocate or transfer amounts to the FPAs, the amounts we
need to transfer to the FPAs in order to maintain the guarantee provided by the GAV Benefit will be less. If you withdraw
or transfer amounts out of the FPAs (subject to the GAV Fixed Account Minimum), the amounts we need to transfer to
the FPAs in order to maintain the guarantee provided by the GAV Benefit will be greater.
R E S ET T I N G T H E G A V B EN EF I T
For Contracts issued in Alabama, Oregon, Pennsylvania, Utah and Washington: The reset feature is not available.
You may reset the operation of the GAV Benefit at any time, as long as the reset date is at least 90 days from any earlier
reset date and the reset provision is available in your state. Upon a reset, we will transfer 100% of your Contract Value to
the Investment Choices on the reset date according to your most recent allocation instructions unless you instruct us
otherwise. If you reset the operation of the GAV Benefit, the first Contract Anniversary on which your Contract Value
will be guaranteed under the GAV Benefit will be the Contract Anniversary occurring five years after the Contract
Anniversary that occurs on or after the reset date. This means that we will not make a True Up to the Contract anytime
between the reset date and the sixth Contract Anniversary after the reset date (or the fifth Contract Anniversary if you
reset on a Contract Anniversary). The GAV on the reset date is the greater of:
the last GAV calculated before the reset date, plus any additional Purchase Payments received on or after the last
GAV calculation, and minus any GAV adjusted partial withdrawals taken on or after that calculation, or
your Contract Value.
If your Contract Value on the reset date is less than the GAV at that time, the GAV Transfers to the FPAs will occur more
rapidly and at a larger amount than those for a new Contract with a Purchase Payment equal to the Contract Value on the
reset date. This occurs because the guarantee available to you on the reset date is larger than the guarantees available for a
new Contract.
On the Contract Anniversary that occurs on or after the reset date, the new GAV is equal to the greater of:
the GAV established on the reset date, plus any additional Purchase Payments received on or after the reset date, and
minus any GAV adjusted partial withdrawals taken on or after the reset date; or
your Contract Value.
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On each subsequent Contract Anniversary, the new GAV is calculated as previously described (see the Calculating the
GAV discussion that appears earlier in this section).
O T H E R INF O R MAT ION O N T H E G A V B EN EF IT
Once we pay a GAV True Up to your Contract Value as a result of the GAV Benefit, the True Ups become part of your
Contract Value and are available for immediate withdrawal. Also, any GAV True Ups will be allocated proportionately to
the Investment Options you chose, and will immediately begin to participate in the investment performance of those
Investment Options. For tax purposes, your True Up will be treated as earnings under the Contract. However, if your
Contract Value at the time of a True Up is less than your net Purchase Payments (total Purchase Payments received less
any prior payments withdrawn) then we may treat some or all of the True Up as a Purchase Payment when applying the
withdrawal charge if the entire Contract Value is then withdrawn. This is no different than when the Contract Value is
less than your net Purchase Payments, but the Contract Value then experiences a gain immediately before you take a
complete withdrawal. We assess withdrawal charges against Purchase Payments withdrawn in the manner described in
section 7, Expenses Withdrawal Charge.
The GAV Benefit will terminate upon the earliest of the following.
The Income Date that you take a Full Annuitization, including a required Full Annuitization on the maximum
permitted Income Date. For more information, see section 2, The Annuity Phase.
7. EXPENSES
There are charges and other expenses associated with the Contract that will reduce your investment return. These charges
and expenses are described in detail in this section.
MORTAL IT Y AND EXPENSE RISK ( M&E) CHARGES
Each Business Day, during the Accumulation and Annuity Phases, we make a deduction from your Separate Account
assets for the mortality and expense risk (M&E) charges. We do this as part of our calculation of the value of the
Accumulation and Annuity Units. We calculate the M&E charges as a percentage of the average daily assets invested in a
subaccount on an annual basis. The amount of the M&E charge during the Accumulation Phase depends on the benefit
options that apply. During the Accumulation Phase, the M&E charges are as follows:
M&E Charges
February 2007 Contract
and
on or after June 22, 2007
Enhanced GMDB 1.45%
During the Annuity Phase, if you request variable Traditional Annuity Payments, the M&E charge is equal, on an annual
basis, to 1.25% for a February 2007 Contract and an Original Contract issued on or after June 22, 2007. This expense is
equal to the lowest charge because we do not pay a death benefit separate from the benefits provided by the Annuity
Option if the Annuitant dies during the Annuity Phase. Because the Contract allows Partial Annuitization, it is possible
for different portions of the Contract to be in both the Accumulation and Annuity Phases at the same time. It is also
possible to have different M&E charges on different portions of the Contract at the same time if you request a variable
traditional Partial Annuitization.
These charges compensate us for all the insurance benefits provided by your Contract, for example:
our contractual obligation to make Annuity Payments,
the death benefits, income benefits, withdrawal benefits and Living Guarantees under the Contract,
certain expenses related to the Contract, and
for assuming the risk (expense risk) that the current charges will be insufficient in the future to cover the cost of
administering the Contract.
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If the M&E charges are sufficient to cover such costs and risks, any excess will be profit to us. We anticipate making such
a profit, and using it to cover distribution expenses as well as the cost of providing certain features under the Contract.
CO NTRA CT MAINT ENA NC E CH ARG E
We deduct $40 from the Contract annually as a contract maintenance charge during the Accumulation and Annuity
Phases. The charge is for the expenses associated with the administration and maintenance of the Contract. We deduct
this charge on the last day of each Contract Year and we deduct it proportionately from the Investment Options as set out
in your Contract. If there is an insufficient amount in the Investment Options, the charge is deducted first from the
Investment Options, and any remaining amount is deducted from the FPAs. During the Annuity Phase, we will collect a
portion of the charge out of each Annuity Payment.
During the Accumulation Phase, we will not deduct this charge if the Contract Value is at least $75,000 at the time we are
to deduct the charge. If you own more than one Contract offered under this prospectus, we will determine the total value
of all your Contracts. If the total value of all Contracts registered under the same social security number is at least
$75,000, we will not assess the contract maintenance charge. We also will waive this charge during the Annuity Phase if
the Contract Value on the Income Date is at least $75,000. If you take a full withdrawal from your Contract (other than on
a Contract Anniversary), we will deduct the full contract maintenance charge.
If the Contract is owned by a non-individual (for example, a qualified plan or trust), we will look to the Annuitant to
determine if we will assess the charge.
In some states, we are not permitted to assess the contract maintenance charge against the general account Investment
Choices, during the Annuity Phase, or both.
WIT HDR AWAL CH ARG E
You can take withdrawals from the portion of the Contract that is in the Accumulation Phase. A withdrawal charge
applies if all or part of the amount withdrawn is from Purchase Payments we received within seven complete years before
the withdrawal. The withdrawal charge compensates us for expenses associated with selling the Contract. We do not
assess the withdrawal charge for amounts paid out: as Annuity Payments (including GMIB Payments), as death benefits,
under the waiver of withdrawal charge benefits, or as part of a required minimum distribution payment under our
minimum distribution program. (For more information, see section 9, Access to Your Money Waiver of Withdrawal
Charge Benefits and The Minimum Distribution Program and Required Minimum Distribution (RMD) Payments.)
The total amount under your Contract that is subject to a withdrawal charge is the Withdrawal Charge Basis. The
Withdrawal Charge Basis is equal to the total Purchase Payments, less any Purchase Payments withdrawn (excluding any
penalty-free withdrawals), and less any withdrawal charges. Amounts applied to Partial Annuitizations will reduce each
Purchase Payment proportionately by the percentage of Contract Value or GMIB value you annuitize. We do not reduce
the Withdrawal Charge Basis for any penalty-free withdrawals. This means that if you take a full withdrawal
while the withdrawal charge applies and you have taken penalty-free withdrawals, you may be assessed a
withdrawal charge on more than the amount you are withdrawing. Penalty-free withdrawals include the following
amounts: withdrawals under the GWB, withdrawals under the partial withdrawal privilege, withdrawals under the waiver
of withdrawal charge benefit, and any amounts paid as part of a required minimum distribution. We also do not adjust the
Withdrawal Charge Basis for any gains or losses on your Investment Options. This means that on a full withdrawal, if
the Contract Value has declined due to poor performance of your selected Investment Options, the withdrawal
charge may be greater than the amount available for withdrawal. Because we assess the withdrawal charge against
the Withdrawal Charge Basis, in some instances, the Contract Value may be positive, but you will not receive a
distribution due to the amount of the withdrawal charge. For more information, please see the examples in
Appendix G.
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For purposes of calculating any withdrawal charge, we withdraw Purchase Payments on a first-in-first-out (FIFO) basis
and we make withdrawals from your Contract in the following order.
1. First, we withdraw any Purchase Payments that are beyond the withdrawal charge period shown in your Contract (for
example, Purchase Payments that we have had for seven or more complete years). We do not assess a withdrawal
charge on these Purchase Payments.
2. Then, we withdraw any Purchase Payments that are under the partial withdrawal privilege and we do not assess a
withdrawal charge. However, the partial withdrawal privilege is not available if you are taking a full withdrawal. For
more information, see section 9, Access to Your Money Partial Withdrawal Privilege.
3. Next, on a FIFO basis, we withdraw Purchase Payments that are within the withdrawal charge period shown in your
Contract. We do assess a withdrawal charge on these Purchase Payments, but we withdraw them on a FIFO basis,
which may help reduce the total withdrawal charge you will pay because the withdrawal charge declines over time.
We determine your total withdrawal charge by multiplying each of these payments by the applicable withdrawal
charge percentage and then totaling the charges.
4. Finally, we withdraw any Contract earnings. We do not assess a withdrawal charge on Contract earnings. We consider
any True Ups we make to your Contract Value under the GAV Benefit to be earnings. However, if the Contract Value
at the time of a True Up is less than your net Purchase Payments (total Purchase Payments received less any prior
payments withdrawn) some or all of the True Up may, in effect, be treated as a Purchase Payment when applying the
withdrawal charge if the entire Contract Value is then withdrawn. For more information see section 6, Guaranteed
Account Value (GAV) Benefit Other Information on the GAV Benefit.
We keep track of each Purchase Payment we receive. The amount of the withdrawal charge depends upon the length of
time since we received your Purchase Payment. The charge as a percentage of each Purchase Payment withdrawn is as
follows.
Number of Complete Years
Since We Received Your
0 8%
1 8%*
2 7%
3 6%
4 5%
5 4%
6 3%
7 years or more 0%
* 7.5% in Alabama, Oregon, Pennsylvania, Utah and Washington.
After we have had a Purchase Payment for seven complete years, there is no charge when you withdraw that Purchase
Payment. However, withdrawals from the FPAs may be subject to an MVA.
We calculate the withdrawal charge at the time of each withdrawal. For a full withdrawal, we will deduct the withdrawal
charge as a percentage of the amount withdrawn. For a partial withdrawal that is subject to a withdrawal charge, the
amount we deduct from your Contract will be the amount you request, plus any applicable withdrawal charge. We apply
the withdrawal charge to this total amount and we pay you the amount you requested. For partial withdrawals, we deduct
the charge from the Contract Value and we deduct it proportionately from the Investment Options. However, if there is
not enough Contract Value in the Investment Options, we will deduct the remaining amount of the charge proportionately
from any other available Investment Choices. Partial withdrawals from a general account Investment Choice may involve
an MVA, which may increase or decrease your Contract Value and/or the proceeds you receive.
Example: You purchase a February 2007 Contract with the Living Guarantees. You make an initial Purchase Payment of
$30,000 and make another Purchase Payment in the first month of the second Contract Year of $70,000. In the third
month of the third Contact Year, your Contract Value is $110,000 and you request a withdrawal of $52,000. There is no
MVA at the time of the withdrawal. We would withdraw money from the Contract Value and compute the withdrawal
charge as follows.
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1) Purchase Payments that are beyond the withdrawal charge period. All payments are still within the withdrawal charge
period so this does not apply.
2) Amounts available under the partial withdrawal privilege. You have not taken any other withdrawals this year so you
can withdraw up to 12% of your total payments (or $12,000) without incurring a withdrawal charge.
3) Purchase Payments on a FIFO basis. The total amount we deduct from the first Purchase Payment is $30,000, which is
subject to a 7% withdrawal charge, and you will receive $27,900. We determine this amount as follows:
(amount withdrawn) x (1 withdrawal charge) = the amount you receive, or:
$30,000 x 0.930 = $27,900.
Next we determine how much we need to deduct from the second Purchase Payment. So far we have deducted
$39,900 ($12,000 under the partial withdrawal privilege and $27,900 from the first Purchase Payment), so we would
need to deduct $12,100 from the second Purchase Payment to get you the $52,000 you requested. The second
Purchase Payment is subject to an 8% withdrawal charge. We calculate the total amount withdrawn and the
withdrawal charge you pay on this amount as follows:
(the amount you receive) (1 withdrawal charge) = amount withdrawn, or:
$12,100 0.920 = $13,152
4) Contract earnings. As we have already withdrawn your requested amount, this does not apply.
In total we withdrew $55,152 from your Contract, of which you received $52,000 and paid total withdrawal charges of
$3,152.
NOTE: Withdrawals may have tax consequences and, if taken before age 59, may be subject to a 10% federal penalty
tax. For tax purposes, under Non-Qualified Contracts, withdrawals are considered to have come from the last money
you put into the Contract. Thus, for tax purposes, earnings are considered to come out first.
Reduction or Elimination of the Withdrawal Charge
We may reduce or eliminate the amount of the withdrawal charge when the Contract is sold under circumstances that
reduce its sales expenses. For example, if there is a large group of individuals that will be purchasing the Contract or if a
prospective purchaser already has a relationship with us. We may choose not to deduct a withdrawal charge under a
Contract issued to an officer, director, or employee of Allianz Life or any of its affiliates. Also, we may reduce or waive
the withdrawal charge when a Contract is sold by a registered representative appointed with Allianz Life to any members
of his or her immediate family, and the commission is waived. We require our prior approval for any reduction or
elimination of the withdrawal charge.
TR AN SF ER F EE
You can currently make 12 free transfers every Contract Year. If you make more than 12 transfers in a Contract Year, we
will deduct a transfer fee of $25 for each additional transfer. Currently, we deduct this fee only during the Accumulation
Phase, but we reserve the right to deduct it during the Annuity Phase. Transfers from a FPA may be subject to an MVA,
which may increase or decrease the value of the Contract and/or the amount transferred. We will deduct the transfer fee
from the Investment Choice from which the transfer is made. If you transfer the entire amount in the Investment Choice,
then we will deduct the transfer fee from the amount transferred. If you are transferring from multiple Investment
Choices, we will treat the transfer as a single transfer and we will deduct any transfer fee proportionately from the
Investment Choices if you transfer less than the entire amount that is in the Investment Choice. If the transfer is a GAV
Transfer or is made under the dollar cost averaging or flexible rebalancing programs, there is no fee for the transfer and
we currently do not count these transfers against any free transfers we allow.
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P R EM I U M T A X E S
Some states and other governmental entities (for example, municipalities) assess a tax (premium tax) on us based on the
amount of Purchase Payments we receive from you. In some states, the tax is based on the amount applied to Annuity
Payments. We are responsible for the payment of these taxes. We will make a deduction from your Contract Value equal
to the amount we are required to pay for premium tax. Some of these taxes are due on the Issue Date, others are due on
the Income Date. It is our current practice not to make deductions from the Contract to reimburse ourselves for the
premium taxes that we pay until the earliest of the following: upon the Income Date* if you take a Full Annuitization, the
date of full withdrawal from the Contract, or full distribution of the death benefit. We may change this practice in the
future and deduct the charge when the tax is due. Premium taxes normally range from 0% to 3.5% of the Purchase
Payment, depending on the state or governmental entity.
* We do not make deductions to reimburse ourselves for premium taxes from amounts applied to GMIB Payments.
INCOME TAXES
We reserve the right to deduct from the Contract any income taxes that we may incur because of the Contract. Currently,
we are not making any such deductions.
I N V ES T M EN T O PT I O N EX P E N SE S
There are deductions from the assets of the various Investment Options for operating expenses (including management
fees) that are described in the Fee Tables and in the table of annual operating expenses for each Investment Option in
Appendix A in this prospectus and in the prospectuses for the Investment Options. These charges apply during the
Accumulation and Annuity Phases if you make allocations to the Investment Options. These expenses will reduce the
performance of the Investment Options and, therefore, will negatively affect your Contract Value and the amounts
available for withdrawals and Annuity Payments. They may also negatively impact the death benefit proceeds. The
investment advisers for the Investment Options provided the fee and expense information and we did not independently
verify it.
8. TAXES
NOTE: We have prepared the following information on taxes as a general discussion of the subject. The Contract offers
flexibility regarding how distributions can be taken. Not all of these distributions (or their attendant tax consequences)
are discussed in this section. This information is not intended as tax advice. You should, therefore, consult your own tax
adviser about your own circumstances. We have included additional information regarding taxes in the Statement of
Additional Information. For more information on the taxation of Annuity Payments made under a Partial Annuitization,
see section 2, The Annuity Phase Partial Annuitization. For more information on the Taxation of GMIB Payments,
see Section 2, The Annuity Phase.
A NNU IT Y CONT RACT S IN G EN ERAL
Annuity contracts are a means of setting aside money for future needs usually retirement. Congress recognized how
important saving for retirement was and provided special rules in the Internal Revenue Code (Code) for annuities.
These rules generally provide that you will not be taxed on any earnings on the money held in your annuity until you take
the money out. This is called tax deferral. There are different rules regarding how you will be taxed, depending upon how
you take the money out and whether the annuity is Qualified or Non-Qualified (see the following discussion in this
section).
If you do not purchase the Contract under a tax qualified retirement plan, the Contract is referred to as a Non-Qualified
Contract. When a Non-Qualified Contract is owned by a non-individual (for example, a corporation or certain other
entities other than a trust holding the Contract as an agent for an individual), the Contract will generally not be treated as
an annuity for tax purposes. This means that the Contract may not receive the benefits of tax deferral and Contract
earnings may be taxed as ordinary income every year.
QU ALIFIED CO NTRA CT S
If you purchase the Contract under a pension or retirement plan that is qualified under the Code, the Contract is referred
to as a Qualified Contract. Qualified Contracts are subject to special rules. Adverse tax consequences may result if
contributions, distributions, and transactions in connection with the Qualified Contract do not comply with the law.
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A Qualified Contract will not provide any necessary or additional tax deferral if it is used to fund a qualified plan that is
tax deferred. However, the Contract has features and benefits other than tax deferral that may make it an appropriate
investment for a qualified plan. You should consult your tax adviser regarding these features and benefits before
purchasing a Qualified Contract.
We may issue the following types of Qualified Contracts.
Traditional Individual Retirement Annuity. Section 408 of the Code permits eligible individuals to maintain Individual
Retirement Annuities (IRAs). IRA contributions are limited each year to the lesser of a dollar amount specified in the
Code or 100% of the amount of compensation included in the Owners income. The limit on the amount contributed
to an IRA does not apply to distributions from certain other types of qualified plans that are rolled over on a tax-
deferred basis into an IRA. Purchasers of a Contract for use with IRAs will have the right to revoke their purchase
within seven days of the earlier of the establishment of the IRA or their purchase.
Simplified Employee Pension (SEP) IRA. Employers may establish Simplified Employee Pension (SEP) IRAs under
Code Section 408(k) to provide IRA contributions on behalf of their employees. In addition to all of the general rules
governing IRAs, such plans are subject to additional requirements and different contribution limits.
Roth IRA. Section 408A of the Code permits certain eligible individuals to contribute to a Roth IRA. Contributions to
a Roth IRA are limited each year to the lesser of a dollar amount specified in the Code or 100% of the amount of
compensation included in the Owners income and must be made in cash or as a rollover or transfer from another Roth
IRA or other IRA. Distributions from a Roth IRA generally are not taxed until after the total amount distributed from
the Roth IRA exceeds the amount contributed to the Roth IRA. After that, income tax and a 10% federal penalty tax
may apply to distributions made: (1) before age 59 (subject to certain exceptions), or (2) during the five tax years
starting with the year in which the first contribution is made to any Roth IRA.
TSAs or 403(b) Contracts. Section 403(b) of the Code allows employees of certain Section 501(c)(3) organizations
and public schools to exclude from their gross income the purchase payments made, within certain limits, on a
contract that will provide an annuity for the employees retirement. As a result of changes to the regulations regarding
403(b)/TSA contracts which requires information sharing agreements between the financial organization or insurance
company and employers sponsoring 403(b)/TSA plans, these plans are no longer offered with this Contract. However,
that may change in the future.
Inherited IRA. The Code permits beneficiaries of investments that were issued under certain tax-qualified pension or
retirement plans to directly transfer the death benefit from that investment into a variable annuity contract (Inherited
IRA Contract). If we make this Contract available as an Inherited IRA Contract, the beneficiary of the previous tax-
qualified investment will become the Owner of the new Inherited IRA Contract. The ownership of the Contract must
also reflect the name of the previous deceased owner. The purpose of the Inherited IRA Contract is to allow the
Owner to change the investment vehicle to an annuity and receive required minimum distribution withdrawal
payments instead of receiving a lump sum death benefit payment. If we make this Contract available as an Inherited
IRA Contract, the death benefit proceeds must be directly transferred into this Contract; they cannot be received by
the beneficiary and then applied to the Contract. A beneficiary can apply the death benefit proceeds from multiple tax-
qualified investments that were owned by the same owner to the purchase of an Inherited IRA Contract. We will not
accept any other forms of Purchase Payment on an Inherited IRA Contract.
We permit you to add enhanced optional benefits to an Inherited IRA Contract. We currently believe this is allowable
because enhanced optional benefits can be added to traditional IRA plans. However, the Internal Revenue Service
(IRS) has not yet issued any rulings on this issue with respect to Inherited IRA Contracts. Therefore, Owners should
discuss this issue with their tax and legal advisers before adding enhanced optional benefits to an Inherited IRA
Contract.
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Qualified Plans. A qualified plan is a retirement or pension plan that meets the requirements for tax qualification under
the Code. If the Contract is an investment for assets of a qualified plan under Section 401 of the Code, the plan is both the
Owner and the Beneficiary. The authorized signatory or plan trustee for the plan must make representations to us that the
plan is qualified under the Code on the Issue Date and is intended to continue to be qualified for the entire Accumulation
Phase of the Contract, or as long as the qualified plan owns the Contract. The qualified plan may designate a third party
administrator to act on its behalf. All tax reporting will be the responsibility of the plan. In the event the qualified plan
instructs us to roll the plan assets into an IRA for the Annuitant under this Contract, we will change the qualification type
of the Contract to an IRA and make the Annuitant the Owner. The qualified plan will be responsible for any reporting
required for the rollover transactions.
MULT IPL E CONT RAC TS
Section 72(e)(12) of the Code provides that multiple Non-Qualified deferred annuity contracts that are issued within a
calendar year period to the same owner by one company or its affiliates are treated as one annuity contract for purposes of
determining the tax consequences of any distribution. Such treatment may result in adverse tax consequences, including
more rapid taxation of the distributed amounts from such combination of contracts. For purposes of this rule, contracts
received in a Section 1035 exchange will be considered issued in the year of the exchange. You should consult a tax
adviser before purchasing more than one Non-Qualified Contract in any calendar year period.
PARTIAL 1035 EXCHANGES
Section 1035 of the Code provides that an annuity contract may be exchanged in a tax-free transaction for another annuity
contract. Historically, it was presumed that only the exchange of an entire contract (as opposed to a partial exchange)
would be accorded tax-free status. Guidance from the IRS, however, confirmed that the direct transfer of a portion of an
annuity contract into another annuity contract can qualify as a non-taxable exchange. IRS guidance provides that this
direct transfer can go into an existing annuity contract as well as a new annuity contract. IRS guidance also provides that
certain partial exchanges may not qualify as tax-free exchanges. Therefore, Owners should consult their own tax advisers
before entering into a partial exchange of an annuity contract.
D I STR IBU TION S NO N-QU ALIFIED CO NTRA CT S
You, as the Owner, generally will not be taxed on increases in the value of the Contract until an actual or deemed
distribution occurs either as a withdrawal (including, if available, Partial Annuitizations) or as Traditional Annuity
Payments or GMIB Payments under a Full Annuitization.
Section 72 of the Code governs treatment of distributions. When a withdrawal from a Non-Qualified Contract occurs, the
amount received will generally be treated as ordinary income subject to tax up to an amount equal to the excess (if any) of
the Contract Value immediately before the distribution over your investment in the Contract (generally, the Purchase
Payments or other consideration paid for the Contract, reduced by any amount previously distributed from the Contract
that was not subject to tax) at that time. Amounts received as a result of a Partial Annuitization are treated as partial
withdrawals. In the case of a full withdrawal under a Non-Qualified Contract, the amount received generally will be
taxable only to the extent it exceeds your investment in the Contract.
If you take a Full Annuitization, different rules apply. Periodic installments (for example, GMIB Payments) scheduled to
be received at regular intervals (for example, monthly) after you take a Full Annuitization should be treated as annuity
payments (and not withdrawals) for tax purposes. (In this regard, we intend to make tax reporting on periodic installments
scheduled to be received at regular intervals under a Partial Annuitization as annuity payments ONLY after a Contracts
entire Contract Value has been applied to Annuity Payments, provided that such installments extend over a period of
more than one full year from the time of the Full Annuitization. Due to the lack of guidance on whether this is the
appropriate tax treatment for such payments, however, Owners should consult with a tax adviser on this issue.) After a
Full Annuitization, a portion of each Annuity Payment may be treated as a partial return of your Purchase Payment and
will not be taxed. The remaining portion of the payment will be treated as ordinary income. How the Annuity Payment is
divided between taxable and non-taxable portions depends upon the period over which we expect to make the payments.
Once we have paid out all of your Purchase Payment(s), the entire Annuity Payment is taxable as ordinary income.
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Section 72 of the Code further provides that any amount received under an annuity contract, which is included in income,
may be subject to a federal penalty tax. The amount of the federal penalty tax is equal to 10% of the amount that is
included in income. Some distributions will be exempt from the federal penalty tax. There is an exception to this 10%
federal penalty tax for amounts:
1) paid on or after you reach age 59;
2) paid after you die;
3) paid if you become totally disabled (as that term is defined in Section 72(m)(7) of the Code);
4) paid in a series of substantially equal payments made annually (or more frequently) under a lifetime annuity;
5) paid as annuity payments under an immediate annuity; or
6) that come from Purchase Payments made before August 14, 1982.
With respect to (4) above, if the series of substantially equal periodic payments is modified, as permitted by the Code,
before the later of your attaining age 59 or the close of the five year period that began on the Income Date, then the tax
for the year of the modification is increased by the 10% federal penalty tax, plus interest, for the tax years in which the
exception was used. A partial withdrawal taken after a series of substantially equal periodic payments has begun may
result in the modification of the series of substantially equal payments and therefore could result in the imposition of the
10% federal penalty tax and interest for the period as described above.
D I STR IBU TION S QU ALIFIED CONTR ACT S
Section 72 of the Code governs treatment of distributions from Qualified Contracts. Special rules may apply to
withdrawals from certain types of Qualified Contracts, including Roth IRAs. You should consult with your qualified plan
sponsor and tax adviser to determine how these rules affect the distribution of your benefits.
Section 72(t) of the Code provides that any amount received under a Qualified Contract, which is included in income,
may be subject to a federal penalty tax. The amount of the federal penalty tax is equal to 10% of the amount that is
included in income. Some distributions will be exempt from the federal penalty tax. There is an exception to this 10%
federal penalty tax for:
1) distributions made on or after the date you (or the Annuitant as applicable) reach age 59;
2) distributions following your death or disability (or the Annuitant as applicable) (for this purpose disability is as
defined in Section 72(m)(7) of the Code);
3) after separation from service, paid in a series of substantially equal payments made annually (or more frequently)
under a lifetime annuity;
4) distributions made to you to the extent such distributions do not exceed the amount allowed as a deduction under Code
Section 213 for amounts paid during the tax year for medical care;
5) distributions made on account of an IRS levy upon the Qualified Contract;
6) distributions from an IRA for the purchase of medical insurance (as described in Section 213(d)(1)(D) of the Code)
for you (or the Annuitant as applicable) and his or her spouse and dependents if you have received unemployment
compensation for at least 12 weeks (this exception will no longer apply after you have been re-employed for at least
60 days);
7) distributions from an IRA made to you, to the extent such distributions do not exceed your qualified higher education
expenses (as defined in Section 72(t)(7) of the Code) for the tax year;
8) distributions from an IRA which are qualified first-time homebuyer distributions (as defined in Section 72(t)(8) of the
Code);
9) distributions made to an alternate Payee pursuant to a qualified domestic relations order (does not apply to an IRA);
and
10) a reservist called to active duty during the period between September 11, 2001 and December 31, 2007, for a period in
excess of 179 days (or for an indefinite period), distributions from IRAs or amounts attributable to elective deferrals
under a 401(k) plan made during such active period.
The exception stated in (3) above applies to an IRA without the requirement that there be a separation from service. With
respect to (3) above, if the series of substantially equal periodic payments is modified as permitted by the Code, before
the later of the Annuitant attaining age 59 or the close of the five year period that began on the Income Date, then the
tax for the year of the modification is increased by the 10% federal penalty tax, plus interest for the tax years in which the
54
exception was used. A partial withdrawal taken after a series of substantially equal periodic payments has begun may
result in the modification of the series of substantially equal payments and therefore could result in the imposition of the
10% federal penalty tax and interest for the period as described above, unless another exception to the federal penalty tax
applies. You should obtain competent tax advice before you take any partial withdrawals from your Contract.
Distributions from a Qualified Contract must commence no later than the required beginning date. For IRAs, the required
beginning date is April 1 of the calendar year following the year in which you attain age 70. Under a qualified plan, the
required beginning date is generally April 1 of the calendar year following the later of the calendar year in which you
reach age 70 or retire. Generally, required minimum distributions must be made over a period not exceeding the life or
life expectancy of the individual or the joint lives or life expectancies of the individual and his or her designated
Beneficiary. If the required minimum distributions are not made, a 50% federal penalty tax is imposed as to the amount
not distributed. It is unclear whether a partial withdrawal taken after an Income Date will have an adverse impact on the
determination of required minimum distributions. If you are attempting to satisfy these rules through partial withdrawals,
the present value of future benefits provided under the Contract may need to be included in calculating the amount
required to be distributed. If you are receiving Annuity Payments or are age 70 or older, you should consult with a tax
adviser before taking a partial withdrawal.
A SSIGNMENT S, PL EDG ES AND GR ATU ITOU S TR AN SF ER S
Other than in the case of Qualified Contracts (which generally cannot be assigned or pledged), any assignment or pledge
of (or agreement to assign or pledge) the Contract Value is treated for federal income tax purposes as a full withdrawal.
The investment in the Contract is increased by the amount includible as income with respect to such amount or portion,
though it is not affected by any other aspect of the assignment or pledge (including its release). If an Owner transfers a
Contract without adequate consideration to a person other than the Owners spouse (or to a former spouse incidental to
divorce), the Owner will be taxed on the difference between his or her Contract Value and the investment in the Contract
at the time of transfer and for each subsequent year until the assignment is released. In such case, the transferees
investment in the Contract will be increased to reflect the increase in the transferors income.
The transfer or assignment of ownership of the Contract, the designation of an Annuitant, the selection of certain Income
Dates, or the exchange of the Contract may result in certain other tax consequences that are not discussed here. An Owner
contemplating any such transfer, assignment, or exchange should consult a tax adviser as to the tax consequences.
D EA T H B ENEF IT S
Any death benefits paid under the Contract are taxable to the recipient as ordinary income. The rules governing the
taxation of payments from an annuity contract generally apply to the payment of death benefits and depend on whether
the death benefits are paid as a lump sum or as Annuity Payments. Estate taxes may also apply.
WIT HHOL DING
Annuity distributions are generally subject to withholding for the recipients federal income tax liability. Recipients can,
however, generally elect not to have tax withheld from distributions unless they are subject to mandatory state
withholding.
Eligible rollover distributions from qualified plans are subject to a mandatory federal income tax withholding of 20%.
An eligible rollover distribution is any distribution to an employee (or employees spouse or former spouse as Beneficiary
or alternate Payee) from such a plan, except certain distributions such as distributions required by the Code, distributions
in a specified annuity form, or hardship distributions. The 20% withholding does not apply, however, to nontaxable
distributions or if the employee chooses a direct rollover from the Contract plan to a qualified plan, IRA, TSA or 403(b)
plan, or to a governmental Section 457 plan that agrees to separately account for rollover contributions.
F EDERAL ESTAT E TAXES
While no attempt is being made to discuss the federal estate tax implications of the Contract, a purchaser should keep in
mind that the value of an annuity contract owned by a decedent and payable to a Beneficiary by virtue of surviving the
decedent is included in the decedents gross estate. Depending on the terms of the annuity contract, the value of the
annuity included in the gross estate may be the value of the lump sum payment payable to the designated Beneficiary or
the actuarial value of the payments to be received by the Beneficiary. Consult an estate planning adviser for more
information.
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G EN ER ATION- S KIPPING TR AN SF ER TA X
Under certain circumstances, the Code may impose a generation-skipping transfer tax when all or part of an annuity
contract is transferred to, or a death benefit is paid to, an individual two or more generations younger than the Owner.
Regulations issued under the Code may require us to deduct the tax from your Contract, or from any applicable payment,
and pay it directly to the IRS.
FOREIGN TAX CR ED IT S
We may benefit from any foreign tax credits attributable to taxes paid by certain funds to foreign jurisdictions to the
extent permitted under the federal tax law.
A NNU IT Y PUR CHA SES BY NONR ESIDENT AL IEN S AN D FO R EIGN CO RPO RAT ION S
The preceding discussion provides general information regarding federal income tax consequences to annuity purchasers
that are U.S. citizens or residents. Purchasers that are not U.S. citizens or residents will generally be subject to federal
withholding tax on taxable distributions from annuity contracts at a 30% rate, unless a lower treaty rate applies. In
addition, purchasers may be subject to state and/or municipal taxes and taxes that may be imposed by the purchasers
country of citizenship or residence. Prospective purchasers are advised to consult with a qualified tax adviser regarding
U.S. state, and foreign taxation with respect to an annuity contract purchase.
In Revenue Ruling 2004-75, 2004-31 I.R.B. 109, the IRS announced that income received by residents of Puerto Rico
under life insurance policies or annuity contracts issued by a Puerto Rico branch of a United States life insurance
company is U.S.-source income that is generally subject to United States federal income tax.
POSSIBLE TAX LAW CHANGES
Although the likelihood of legislative or regulatory changes is uncertain, there is always the possibility that the tax
treatment of the Contract could change by legislation, regulation or otherwise. Consult a tax adviser with respect to
legislative or regulatory developments and their effect on the Contract.
We have the right to modify the Contract in response to legislative or regulatory changes that could otherwise diminish
the favorable tax treatment that annuity owners currently receive. We make no guarantee regarding the tax status of any
contract and do not intend the above discussion as tax advice.
D I V ER SI F ICAT ION
The Code provides that the underlying investments for a Non-Qualified variable annuity must satisfy certain
diversification requirements in order to be treated as an annuity contract. We believe that the Investment Options are
being managed so as to comply with the requirements.
In some circumstances, owners of variable annuities who retain excessive control over the investment of the underlying
separate account assets may be treated as the owners of those assets and may be subject to tax on income produced by
those assets. Although published guidance in this area does not address certain aspects of the policies, we believe that the
Owner should not be treated as the owner of the Separate Account assets. We reserve the right to modify the Contract to
bring it into conformity with applicable standards should such modification be necessary to prevent Owners from being
treated as the owners of the underlying Separate Account assets.
R EQ U IR ED D I STR IBU T IO N S
Section 72(s) of the Code requires that, to be treated as an annuity contract for federal income tax purposes, a Non-
Qualified Contract must contain certain provisions specifying how amounts will be distributed in the event of the death of
an Owner of the Contract. Specifically, Section 72(s) requires that: (a) if any Owner dies on or after you take a Full
Annuitization, but before the time the entire interest in the Contract has been distributed, the entire interest in the Contract
must be distributed at least as rapidly as under the method of distribution being used as of the date of the Owners death;
and (b) if any Owner dies before you take a Full Annuitization, the entire interest in the Contract must be distributed
within five years after the date of the Owners death. These requirements will be considered satisfied as to any portion of
an Owners interest that is payable to or for the benefit of a designated Beneficiary and that is distributed over the life of
such designated Beneficiary, or over a period not extending beyond the life expectancy of that Beneficiary, provided that
such distributions begin within one year of the Owners death. The designated Beneficiary refers to an individual
designated by the Owner as a Beneficiary and to whom ownership of the Contract passes by reason of death. However, if
56
the designated Beneficiary is the surviving spouse of the deceased Owner, the Contract may be continued with the
surviving spouse as the new Owner.
Non-Qualified Contracts contain provisions that are intended to comply with these Code requirements, although no
regulations interpreting these requirements have yet been issued. When such requirements are clarified by regulation or
otherwise, we intend to review such provisions and modify them, as necessary, to assure that they comply with the
applicable requirements.
Other rules may apply to Qualified Contracts.
9. ACCESS TO YOUR MONEY

The money in the Contract is available under the following circumstances:
by taking a withdrawal (including GWB withdrawals);
by receiving Annuity Payments; or
when we pay a death benefit.
You can only take withdrawals during the Accumulation Phase. When you make a withdrawal request, we will process
the request based on the Accumulation Unit values next determined after receipt of the request at our Service Center. The
Accumulation Unit values are normally determined at the end of each Business Day. Any withdrawal request received at
or after the end of the current Business Day will receive the next Business Days Accumulation Unit values.
When you take a full withdrawal, we will process the withdrawal:
based upon the number of Accumulation Units held by the Contract on that Business Day and valued at the next
available daily price established after receipt in good order of the withdrawal request at our Service Center,
adjusted for any applicable MVA,
less any applicable withdrawal charge,
less any deductions we make to reimburse ourselves for premium tax that we pay, and
less any contract maintenance charge.
See the Fee Tables and section 7, Expenses for a discussion of the charges.
There is no minimum associated with requesting a partial withdrawal and there is no minimum amount of Contract Value
that we require to remain in the Contract after requesting a partial withdrawal for as long as you hold the Contract. In the
future, if we require a minimum amount of Contract Value to remain in the Contract, we reserve the right to treat a
request for a partial withdrawal that would reduce the Contract Value below this minimum as a request for a full
withdrawal of the Contract. Unless you instruct us otherwise, we will deduct any partial withdrawal (including any
withdrawal charge) proportionately from the Investment Options. If the amount in the Investment Options is less than the
partial withdrawal, then the remaining amount will come proportionately from any other available Investment Choices.
Partial withdrawals from a general account Investment Choice may involve an MVA, which may increase or decrease
your Contract Value and/or the proceeds you receive.
If your Contract includes the Living Guarantees, partial withdrawals are subject to the GAV Fixed Account Minimum.
You can take withdrawals that would reduce the amounts in the FPAs below this minimum by resetting the GAV Benefit
(see section 6, Guaranteed Account Value (GAV) Benefit The GAV Fixed Account Minimum).
We will pay the amount of any withdrawal from the Investment Options within seven days of when we receive your
request in good order, unless the suspension of payments or transfers provision is in effect (see the Suspension of
Payments or Transfers discussion later in this section).
Upon withdrawal, we assess the withdrawal charge against the Withdrawal Charge Basis. Penalty-free withdrawals do not
reduce the Withdrawal Charge Basis, but any other withdrawals of Purchase Payments will reduce the Withdrawal Charge
Basis. Penalty-free withdrawals include the following amounts: withdrawals under the GWB, withdrawals under the
partial withdrawal privilege, withdrawals under the waiver of withdrawal charge benefit, and any amounts paid as part of
a required minimum distribution. We also do not adjust the Withdrawal Charge Basis for any gains or losses on your
Investment Options. This means that if you take a full withdrawal while the withdrawal charge applies and you
have taken penalty-free withdrawals or you have had losses in your Investment Options, you may be assessed a
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withdrawal charge on more than the amount you are withdrawing. In some instances, you will not receive a
distribution due to the amount of the withdrawal charge. For more information, please see section 7, Expenses
Withdrawal Charge and the examples in Appendix G.
Ordinary income taxes, tax penalties and certain restrictions may apply to any withdrawal you take.
PARTIAL WITHDRAWAL PRIVILEG E
The partial withdrawal privilege for each Contract Year is equal to 12% of your total Purchase Payments, less the total
amount previously withdrawn under the partial withdrawal privilege in the same Contract Year, and before any MVA. We
will not deduct a withdrawal charge from amounts withdrawn under the partial withdrawal privilege, but an MVA may
apply to amounts withdrawn from a FPA. Any unused partial withdrawal privilege in one Contract Year does not carry
over to the next Contract Year. There is no partial withdrawal privilege during the Annuity Phase.
If you take a withdrawal of more than the partial withdrawal privilege, the excess amount will be subject to the
withdrawal charge and it will reduce the Withdrawal Charge Basis unless the excess amount is part of a penalty-free
withdrawal. If you take a full withdrawal, we will assess the withdrawal charge with no reduction for the partial
withdrawal privilege. Amounts withdrawn under the partial withdrawal privilege do not reduce the Withdrawal Charge
Basis.
The minimum distribution program allows you to take withdrawals without the deduction of the withdrawal charge under
certain circumstances. For more information, see The Minimum Distribution Program and Required Minimum
Distribution (RMD) Payments discussion later in this section.
WA IVER OF WIT HDR AWAL CH ARG E BEN EF IT S
Under certain circumstances, after the first Contract Year, we will permit you to take money out of the Contract without
deducting a withdrawal charge if any Owner becomes:
confined to a nursing home for a period of at least 90 consecutive days; or
terminally ill, which is defined as life expectancy of 12 months or less (we will require a full withdrawal of the
Contract in this instance).
The waiver will not apply if any of the above conditions existed on the Issue Date. If the Contract is owned by a non-
individual, we will base this benefit on the Annuitant.
We require proof of these conditions in a form satisfactory to us, including certification by a licensed physician before we
will waive the withdrawal charge. Amounts withdrawn under this benefit do not reduce the Withdrawal Charge Basis.
These benefits vary from state to state and may not be available in your state. Check with your registered
representative for details on the waivers available in your state.
GU ARA NTEED WIT HDR AWAL B EN EF IT (G WB)
At Contract issue, you can select either a Contract with Living Guarantees or a Contract without Living Guarantees. If
you do not make a selection, the Living Guarantees will apply to your Contract. After the Issue Date, the Living
Guarantees cannot be added to or removed from your Contract.
Contracts with Living Guarantees will include the GWB. There is no additional charge for this benefit. However, we
monitor your Contract Value daily and systematically transfer amounts between your selected Investment Options and the
FPAs to support the Living Guarantees. This benefit provides a guaranteed income through partial withdrawals,
regardless of your Contract Value, beginning on the second Contract Anniversary. The GWB is not available before the
second Contract Anniversary.
The GWB value is equal to total Purchase Payments less GWB adjusted partial withdrawals. The maximum amount
available for GWB withdrawals each Contract Year is the lesser of:
12% of your total Purchase Payments before any MVA (the partial withdrawal privilege amount), or
the remaining GWB value.
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We will not deduct a withdrawal charge from amounts withdrawn under the GWB, but an MVA may apply to amounts
withdrawn from a FPA. Amounts withdrawn under the GWB will not reduce the Withdrawal Charge Basis, but
withdrawals in excess of the maximum amount available annually under the GWB will be subject to a withdrawal charge
and will reduce the Withdrawal Charge Basis. Any unused GWB withdrawal amount in one Contract Year does not carry
over to the next Contract Year. GWB withdrawals will be treated as withdrawals for tax purposes and if any Owner is
younger than age 59, the GWB withdrawal may also be subject to a 10% federal penalty tax.
Withdrawals and Partial Annuitizations you take in excess of the maximum allowable GWB withdrawal in a
Contract Year may reduce the GWB value by more than the amount withdrawn or annuitized. If the Contract
Value at the time of withdrawal or annuitization is less than the remaining GWB value, the GWB value may be reduced
by more than the amount withdrawn or annuitized.
For each withdrawal* or traditional Partial Annuitization taken before the second Contract Anniversary, a GWB adjusted
partial withdrawal is equal to: PW x GWBV
For each withdrawal* or traditional Partial Annuitization taken on or after the second Contract Anniversary, a GWB
adjusted partial withdrawal is equal to: GWBA + (RPWA x GWBV)
* Includes any amounts paid as part of a required minimum distribution.
GMIBPA x GWB1
For each GMIB Partial Annuitization a GWB adjusted partial withdrawal is equal to:
GMIB
PW = The amount of Contract Value (before any MVA) applied to a traditional Partial Annuitization or
withdrawn (including any applicable withdrawal charge).
GWBA = The amount of the partial withdrawal* (before any MVA) that, together with any previous partial
withdrawals* taken during the Contract Year, does not exceed the maximum allowable GWB
withdrawal for the Contract Year. However, if you take any traditional Partial Annuitization the entire
amount of any Contract Value (before any MVA) applied to the traditional Partial Annuitization will be
included in the RPWA portion of this formula.
* Includes GWB withdrawals.
RPWA = The remaining amount of the partial withdrawal including any applicable withdrawal charge, but before
any MVA.
GWBV = The greater of one, or the ratio of (a) divided by (b) where:
(a) = The remaining GWB value on the day of (but before) the traditional Partial Annuitization or
partial withdrawal.
(b) = The Contract Value on the day of (but before) the traditional Partial Annuitization or partial
withdrawal adjusted for any applicable MVA.
GMIBPA= The amount of the GMIB value applied to a GMIB Partial Annuitization.
GWB1 = The remaining GWB value on the day of (but before) the GMIB Partial Annuitization.
You can continue to take GWB withdrawals until you have withdrawn all of the GWB value. This means that under the
GWB, if you have no remaining Contract Value, your Contract will continue until you have withdrawn all the Purchase
Payments less GWB adjusted partial withdrawals.
Income Date. (For more information see section 2, The Annuity Phase.) Upon such a Full Annuitization the Guaranteed
Withdrawal Benefit will no longer be available to you.
The GWB will terminate upon the earliest of the following.
The Income Date that you take a Full Annuitization, including a required Full Annuitization on the maximum
permitted Income Date. For more information, see section 2, The Annuity Phase.
The GWB value is zero.
The death of the Owner (unless the spouse continues the Contract as the new Owner).
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GWB Adjusted Partial Withdrawal Example

You purchase a February 2007 Contract and select the Living Guarantees. You make only one initial Purchase
Payment of $100,000.
The GWB value at issue is equal to the total Purchase Payments less GWB adjusted partial withdrawals, which is
$100,000.
The maximum amount you can withdraw under the GWB after the second Contract Anniversary is 12% of the total
Purchase Payments before any MVA, which is 0.12 x $100,000 = $12,000.
During the third Contract Year you take a partial withdraw of $13,000 (including any withdrawal charge) when the
Contract Value on the day (but before) the withdrawal is $95,000. There is no MVA on the partial withdrawal.
We calculate the GWB adjusted partial withdrawal as: GWBA + (RPWA x GWBV), where:
GWBA = The amount of the partial withdrawal that does not exceed the maximum allowable
GWB withdrawal for the Contract Year ........................................................................................................$12,000
RPWA = The remaining amount of the partial withdrawal (including any withdrawal charge) =
$13,000 $12,000 = ................................................................................................................................. + ($1,000
GWBV = The greater of one, or the ratio of (a) divided by (b), where:
(a) The remaining GWB value on the day of (but before) the partial withdrawal ..............$100,000
(b) The Contract Value on the day of (but before) the partial withdrawal......................... / $95,000
..........................................................................................................................................1.052632
GWBV ...................................................................................................................................................... x 1.052632)
GWB adjusted partial withdrawal ...................................................................................................................................... $13,053
After this partial withdrawal, the remaining GWB value is $100,000 $13,053 = .................................................................. $86,947
During the fourth Contract Year you take another partial withdrawal of $14,000 (including any withdrawal charge)
when the Contract Value on the day (but before) the withdrawal is $92,500. There is no MVA on the partial
withdrawal.
We calculate the GWB adjusted partial withdrawal as: GWBA + (RPWA x GWBV), where:
GWBA = The amount of the partial withdrawal that does not exceed the maximum allowable
GWB withdrawal for the Contract Year ........................................................................................................$12,000
RPWA = The remaining amount of the partial withdrawal (including any withdrawal charge) =
$14,000 $12,000 = ................................................................................................................................. + ($2,000
GWBV = The greater of one, or the ratio of (a) divided by (b), where:
(a) The remaining GWB value on the day of (but before) the partial withdrawal ................$88,947
(b) The Contract Value on the day of (but before) the partial withdrawal......................... / $92,500
..........................................................................................................................................0.961589
GWBV ............................................................................................................................................................. x 1)
GWB adjusted partial withdrawal ...................................................................................................................................... $14,000
After this partial withdrawal, the remaining GWB value is $86,947 $14,000 = .................................................................... $72,947
SYSTEMATIC WITHDR AWAL PROGRAM
If your Contract Value is at least $25,000, the systematic withdrawal program provides automatic monthly or quarterly
payments to you. The minimum amount you can withdraw under this program is $500. You may withdraw any amount
you want under this program if your Purchase Payments are no longer subject to the withdrawal charge. While the
withdrawal charge is in effect, the systematic withdrawal program is subject to the partial withdrawal privilege. The total
systematic withdrawals that you can take each Contract Year without incurring a withdrawal charge is limited to your
partial withdrawal privilege amount for that Contract Year. With the exception of penalty-free withdrawals, any
withdrawals in a Contract Year (including systematic withdrawals) will be subject to any applicable withdrawal charge.
For more information, see section 7, Expenses Withdrawal Charge and the Partial Withdrawal Privilege discussion
that appears earlier in this section.
All systematic withdrawals will be made on the ninth day of the month or the previous Business Day if the ninth is not a
Business Day. You will not be charged additional fees for participating in or terminating from this program.
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Ordinary income taxes, tax penalties and certain restrictions may apply to systematic withdrawals. You cannot
participate in the systematic withdrawal program and the minimum distribution program at the same time.
T H E M IN I MUM D I STR IB UT IO N PRO G R AM AN D REQ U IR ED M IN IM UM D I STR IB UT IO N ( R MD) PA YME NT S
If you own a Qualified Contract, you may participate in the minimum distribution program during the Accumulation
Phase of the Contract. Under this program, we will make payments to you from your Contract that are designed to meet
the applicable minimum distribution requirements imposed by the Code for this Qualified Contract. We can make
payments to you on a monthly, quarterly, or annual basis. However, we will only make annual payments if your Contract
Value is less than $25,000. RMD payments from this Contract will not be subject to a withdrawal charge and will not
reduce the Withdrawal Charge Basis. However, they will count against your partial withdrawal privilege. You cannot
aggregate RMD payments between this Contract and other qualified contracts that you own. Any RMD payments from
this Contract that exceed the RMD amount calculated for this Contract will be subject to any applicable withdrawal
charge. If your Contract includes Living Guarantees, RMD payments will also count against the maximum amount
available for GWB withdrawals. If you take any additional withdrawals that are not penalty-free withdrawals while you
are receiving RMD payments, these withdrawals will be subject to any applicable withdrawal charge.
This Contract offers a choice of GMDBs and optional Living Guarantees that provide a GMIB. The GMIB may have
limited usefulness if you purchase a Qualified Contract that is subject to a RMD. If your Contract includes the Living
Guarantees and you do not exercise the GMIB on or before the date RMD payments must begin under a qualified plan,
the Owner or Beneficiary may not be able to exercise the GMIB due to the restrictions imposed by the minimum
distribution requirements. You should consider whether the GMIB is appropriate for your situation if you plan to exercise
the GMIB after your RMD beginning date. In addition, RMD payments will reduce your GAV, GWB value, GMDB
value, GMIB value, MAV (if applicable) and amounts available under your partial withdrawal privilege.
You cannot participate in the systematic withdrawal and the minimum distribution programs at the same time.
We encourage prospective owners who are considering purchasing Qualified Contracts that are subject to RMD
payments to consult a tax adviser regarding these benefits.
Inherited IRA Contracts. If you (the Owner) were the spouse of the deceased owner of the previous tax-qualified
investment, and your spouse had not yet reached the date at which he/she was required to begin receiving required
minimum distribution (RMD) payments, then you can wait to begin receiving RMD payments until the year that your
spouse would have reached age 70. Alternatively, if the deceased owner of the previous tax-qualified investment had
already reached the date at which he/she was required to begin receiving RMD payments, you can begin RMD payments
based on your single life expectancy in the year following the deceased owners death, or (if longer) the deceased
previous owners life expectancy in the year of his/her death reduced by one. You must begin to receive these RMD
payments by December 31 of the year following the year of the deceased previous owners death.
SU SPEN SION OF PA YM ENT S OR TR AN SF ER S
We may be required to suspend or postpone payments for withdrawals or transfers for any period when:
the New York Stock Exchange is closed (other than customary weekend and holiday closings);
trading on the New York Stock Exchange is restricted;
an emergency (as determined by the SEC) exists as a result of which disposal of the Investment Option shares is not
reasonably practicable or we cannot reasonably value the Investment Option shares; or
during any other period when the SEC, by order, so permits for the protection of Owners.
We reserve the right to defer payment for a withdrawal or transfer from any general account Investment Choice for the
period permitted by law, but not for more than six months.
10. ILLUSTRATIONS
In order to help you understand how your Contract Values vary over time and under different sets of assumptions, we
may provide you with certain personalized illustrations upon request and free of charge. These illustrations may provide
hypothetical depictions of either the Accumulation Phase or the Annuity Phase. You can request an illustration free of
charge by contacting your registered representative.
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11. DEATH BENEFIT

At Contract issue, you may be able to select one of two death benefit options. If you do not make a selection, the
Traditional GMDB will apply to your Contract. The death benefit is only available during the Accumulation Phase of
the Contract.
The Enhanced GMDB is available at Contract issue for an additional M&E charge if all Owners are age 79 or younger on
the Issue Date (or the Annuitant is age 79 or younger if the Contract is owned by a non-individual). The Enhanced
GMDB does not provide any additional benefit before the first Contract Anniversary and the benefit values are limited
after age 81. As a result, any Owner who is nearing age 79 should determine if selecting the Enhanced GMDB (which has
an additional cost) is appropriate for their situation.
The death benefit provided by the Enhanced GMDB will never be less than the death benefit provided by the
Traditional GMDB, but they may be equal.
You can only select one death benefit at Contract issue. Once you select a death benefit, you cannot change or
cancel it. The Enhanced GMDB may not be available in your state. Check with your registered representative
regarding availability and be sure to discuss whether your selected death benefit is appropriate for your situation.
In some states, the Traditional GMDB may be provided as part of the Base Contract instead of by endorsement.
The use of the term you in this section refers to the Annuitant if the Contract is owned by a non-individual; otherwise it
refers to the Owner.
We will process the death benefit based on the Accumulation Unit values next determined after receipt in good order at
our Service Center of both due proof of death and an election of the death benefit payment option. We consider due
proof of death to be any of the following: a copy of the certified death certificate, a decree of court of competent
jurisdiction as to the finding of death, or any other proof that we consider to be satisfactory. The Accumulation Unit
values are normally determined at the end of each Business Day and due proof of death and an election of the death
benefit payment option received at or after the end of the current Business Day will receive the next Business Days
Accumulation Unit values.
Any part of the death benefit amount that had been invested in the Investment Options remains in the Investment Options
until distribution begins. From the time the death benefit is determined until we make a complete distribution, any amount
in the Investment Options will continue to be subject to investment risk that will be borne by the recipient.
TR AD IT IONAL GUA RANTEED MIN IMUM D EATH B EN EF IT (TR AD IT IONA L GMDB)
If the Traditional GMDB applies, the amount of the death benefit will be the greater of 1 or 2, less any deduction we
make to reimburse ourselves for premium tax that we pay.
1. The Contract Value, determined as of the end of the Business Day during which we receive in good order at our
Service Center both due proof of death and an election of the death benefit payment option.
2. The Traditional GMDB value, which is the total of all Purchase Payments received, reduced for each GMDB adjusted
partial withdrawal taken.
ENH ANC ED GU ARA NTEED MIN I MUM D EA TH B ENEF IT (ENHAN CED G MDB)
If the Enhanced GMDB applies, the amount of the death benefit will be the greater of 1, 2 or 3, less any deduction we
make to reimburse ourselves for premium tax that we pay.
1. The Contract Value, determined as of the end of the Business Day during which we receive in good order at our
Service Center both due proof of death and an election of the death benefit payment option.
2. The Traditional GMDB value, which is the total of all Purchase Payments received, reduced for each GMDB adjusted
partial withdrawal taken.
3. The Enhanced GMDB value, which is the Maximum Anniversary Value (MAV). We determine the MAV as of the
end of the Business Day during which we receive in good order at our Service Center both due proof of death and an
election of the death benefit payment option.
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Maximum Anniversary Value (MAV)

We only calculate the MAV until the date of any Owners death.
The MAV on the Issue Date is equal to your initial Purchase Payment received on the Issue Date.
On each Business Day other than a Contract Anniversary, the MAV is equal to:
its value on the immediately preceding Business Day,
plus any additional Purchase Payments received that day, and
reduced for each GMDB adjusted partial withdrawal taken that day.
On each Contract Anniversary before the older Owners 81st birthday (or the Annuitants 81st birthday if the Contract is
owned by a non-individual) the MAV is equal to the greater of its value on the immediately preceding Business Day, or
the Contract Value that occurs on that Contract Anniversary before we process any transactions. We then process any
transactions received on that Contract Anniversary (such as additional Purchase Payments, withdrawals and Partial
Annuitizations) in the same way that we do on each Business Day other than a Contract Anniversary.
Beginning with the Contract Anniversary that occurs on or after the older Owners 81st birthday (or the Annuitants 81st
birthday if the Contract is owned by a non-individual) we calculate the MAV in the same way that we do on each
Business Day other than a Contract Anniversary.
G MDB AD JUST ED PART IAL WITHDRA WAL FO RMUL A
For each withdrawal or traditional Partial Annuitization taken, a GMDB adjusted partial withdrawal is equal to: (a) x (b)
(a) = The amount of Contract Value (before any MVA) applied to a traditional Partial Annuitization or withdrawn
(including any applicable withdrawal charge).
(b) = The greater of one, or the ratio of (c) divided by (d) where:
(c) = The death benefit on the day of (but before) the traditional Partial Annuitization or partial withdrawal.
(d) = The Contract Value on the day of (but before) the traditional Partial Annuitization or partial
withdrawal, adjusted for any applicable MVA.
GMIBPA x GMDB1
For each GMIB Partial Annuitization, a GMDB adjusted partial withdrawal is equal to:
GMIB
GMIBPA = The amount of the GMIB value applied to a GMIB Partial Annuitization.
GMDB1 = The death benefit on the day of (but before) the GMIB Partial Annuitization.
Any withdrawals or traditional Partial Annuitizations you take in a Contract Year may reduce the GMDB value
by more than the amount withdrawn or annuitized. If the Contract Value at the time of withdrawal or annuitization is
less than the death benefit, we will deduct more than the amount withdrawn or annuitized from the GMDB value.
Please see Appendix E for examples of calculations of the death benefit.
T ER MINAT ION OF TH E DEAT H BENEF IT
The GMDB that applies to your Contract will terminate upon the earliest of the following.
The Business Day before the Income Date that you take a Full Annuitization, including a required Full
Annuitization on the maximum permitted Income Date (for more information, see section 2, The Annuity Phase).
The Business Day that the GMDB value and Contract Value are both zero.
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D EA T H O F T H E O W N ER U ND ER I NH ER IT ED IRA CONT RAC T S
Upon the death of the Owner under an Inherited IRA Contract, the Beneficiary can either:
continue to receive the required minimum distribution payments based on the remaining life expectancy of the
deceased Owner and the Contract Value (less any deduction we make to reimburse ourselves for premium taxes that
we pay) as of the Business Day we receive in good order at our Service Center both due proof of death and the
appropriately completed election form; or
receive a lump sum payment based on the Contract Value (less any deduction we make to reimburse ourselves for
premium taxes that we pay) as of the Business Day we receive in good order at our Service Center both due proof of
death and the appropriately completed election form.
D EA T H O F T H E O W N ER A ND /O R ANN UIT ANT UND ER A L L O T H ER CO NTRA CT S
The following tables are intended to help you better understand what happens upon the death of any Owner and/or
Annuitant under the different portions of the Contract. For Qualified Contracts, there can be only one Owner and the
Owner must be the Annuitant, unless the Contract is a Qualified Contract owned by a qualified plan or is part of a
custodial arrangement. Partial Annuitizations are not available to Joint Owners. If you take a Partial
Annuitization, there can be only one Owner; the Owner must be the Annuitant, and we will not allow the Owner to
add a joint Annuitant. Designating different persons as Owner(s) and Annuitant(s) can have an important impact
on whether a death benefit is paid, and on who would receive it. Use care when designating Owners and
Annuitants, and consult your registered representative if you have questions.
UPON THE DEATH OF A SOLE OWNER
Action under the portion of the Contract that is in the Action under any portion of the Contract applied to
Accumulation Phase Annuity Payments
We will pay a death benefit to the Beneficiary.* For The Beneficiary becomes the Owner.
a description of the payout options, see the Death If the deceased was not an Annuitant, Annuity
Benefit Payment Options discussion later in this Payments to the Payee will continue. No death
section. benefit is payable.
If the GWB was in effect, it will terminate unless the If the deceased was the only surviving Annuitant,
deceased Owners spouse continues the Contract. Annuity Payments to the Payee will continue until
that portion of the Contract terminates and will be
paid at least as rapidly as they were being paid at the
Annuitants death. For more information on when
any portion of the Contract applied to Annuity
Payments terminates, see the discussion of
Traditional Annuity Payments and Guaranteed
Minimum Income Benefit (GMIB) in section 2,
The Annuity Phase. No death benefit is payable
under Annuity Options 1 through 4, or Annuity
Option 6. However, there may be a lump sum refund
due to the Payee under Annuity Option 5. For more
information, see section 2, The Annuity Phase
Annuity Options.
If the deceased was an Annuitant and there is a
surviving joint Annuitant, Annuity Payments to the
Payee will continue during the lifetime of the
surviving joint Annuitant. No death benefit is
payable.
* If the Beneficiary is the spouse of the deceased Owner, the spouse/Beneficiary may be able to continue the Contract instead of receiving a death
benefit payout. If the Contract continues, we will increase the Contract Value to equal the death benefit if that amount is greater than the Contract
Value as of the Business Day we receive in good order at our Service Center both due proof of death and an election of the death benefit payment
option on the death claim form.
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UPON THE DEATH OF A JOINT OWNER

(NOTE: We do not allow Joint Owners to take Partial Annuitizations)
The surviving Joint Owner is the sole primary The surviving Joint Owner becomes the sole Owner.
Beneficiary. If the Joint Owners were spouses there If the deceased was not an Annuitant, Annuity
may also be contingent Beneficiaries. Payments to the Payee will continue. No death
We will pay a death benefit to the surviving Joint benefit is payable.
Owner.* For a description of the payout options If the deceased was the only surviving Annuitant,
available, see the Death Benefit Payment Options Annuity Payments to the Payee will continue until
discussion later in this section. that portion of the Contract terminates and will be
If the GWB was in effect, it will terminate unless the paid at least as rapidly as they were being paid at the
Joint Owners were spouses and the surviving Annuitants death. For more information on when
spouse/Joint Owner continues the Contract. any portion of the Contract applied to Annuity
Payments terminates, see the discussion of
Traditional Annuity Payments and Guaranteed
Minimum Income Benefit (GMIB) in section 2,
The Annuity Phase. No death benefit is payable
under Annuity Options 1 through 4, or Annuity
Option 6. However, there may be a lump sum refund
due to the Payee under Annuity Option 5. For more
information, see section 2, The Annuity Phase
Annuity Options.
If the deceased was an Annuitant and there is a
surviving joint Annuitant, Annuity Payments to the
Payee will continue during the lifetime of the
surviving joint Annuitant. No death benefit is
payable.
* If the surviving Joint Owner is the spouse of the deceased Owner, the spouse/surviving Joint Owner may be able to continue the Contract instead of
receiving a death benefit payout. If the Contract continues, we will increase the Contract Value to equal the death benefit if that amount is greater
than the Contract Value as of the Business Day we receive in good order at our Service Center both due proof of death and an election of the death
benefit payment option on the death claim form. If both spousal Joint Owners die before we pay the death benefit, we will pay any contingent
Beneficiaries or the estate of the Joint Owner who died last if there are no contingent Beneficiaries. If the Joint Owners were not spouses and they
both die before we pay the death benefit, for tax reasons, we will pay the estate of the Joint Owner who died last.
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UPON THE DEATH OF THE ANNUITANT AND THERE IS NO SURVIVING JOINT ANNUITANT
If the Contract is owned by a non-individual (for Annuity Payments to the Payee will continue until
example a qualified plan or a trust), we will treat the that portion of the Contract terminates and will be
death of the Annuitant as the death of an Owner; we paid at least as rapidly as they were being paid at the
will pay the Beneficiary* a death benefit, and a new Annuitants death. For more information on when
Annuitant cannot be named. If the GWB was in any portion of the Contract applied to Annuity
effect, it will terminate unless the deceased Owners Payments terminates, see the discussion of
spouse continues the Contract. Traditional Annuity Payments and Guaranteed
If the deceased Annuitant was not an Owner, and the Minimum Income Benefit (GMIB) in section 2,
Contract is owned only by an individual(s), no death The Annuity Phase. No death benefit is payable
benefit is payable. The Owner can name a new under Annuity Options 1 through 4, or Annuity
Annuitant subject to our approval. If the GWB was Option 6. However, there may be a lump sum refund
in effect, it will continue. due to the Payee under Annuity Option 5. For more
If the deceased Annuitant was a sole Owner, we will information, see section 2, The Annuity Phase
pay the Beneficiary* a death benefit. If the GWB Annuity Options.
was in effect, it will terminate unless the deceased If the deceased was a sole Owner, the Beneficiary
Owners spouse continues the Contract. will become the Owner if the Contract continues.
If the deceased Annuitant was a Joint Owner and If the deceased was a Joint Owner, the surviving
there is a surviving Joint Owner, the surviving Joint Joint Owner becomes the sole Owner if the Contract
Owner is the sole primary Beneficiary. If the Joint continues.
Owners were spouses, there may also be contingent
Beneficiaries. We will pay a death benefit to the
surviving Joint Owner.** If the GWB was in effect,
it will terminate unless the Joint Owners were
spouses and the surviving spouse/Joint Owner
continues the Contract.
For a description of the payout options, see the
Death Benefit Payment Options discussion later in
this section.
* If the Beneficiary is the spouse of the deceased Owner, the spouse/Beneficiary may be able to continue the Contract instead of receiving a death
benefit payout. If the Contract continues, we will increase the Contract Value to equal the death benefit if that amount is greater than the Contract
Value as of the Business Day we receive in good order at our Service Center both due proof of death and an election of the death benefit payment
option on the death claim form.
** If the surviving Joint Owner is the spouse of the deceased Owner, the spouse/surviving Joint Owner may be able to continue the Contract instead of
receiving a death benefit payout. If the Contract continues, we will increase the Contract Value to equal the death benefit if that amount is greater
than the Contract Value as of the Business Day we receive in good order at our Service Center both due proof of death and an election of the death
benefit payment option on the death claim form. If both spousal Joint Owners die before we pay the death benefit, we will pay any contingent
Beneficiaries or the estate of the Joint Owner who died last if there are no contingent Beneficiaries. If the Joint Owners were not spouses and they
both die before we pay the death benefit, for tax reasons, we will pay the estate of the Joint Owner who died last.
UPON THE DEATH OF THE ANNUITANT AND THERE IS A SURVIVING JOINT ANNUITANT
(NOTE: We do not allow joint Annuitants under a Partial Annuitization and we do not allow
joint Annuitants during the Accumulation Phase, so this can only occur under a Full Annuitization)
Only Annuity Options 3 and 4 allow joint No death benefit is payable.
Annuitants. Under Annuity Options 3 and 4, If the deceased was a sole Owner, the Beneficiary
Annuity Payments to the Payee will continue during will become the Owner.
the lifetime of the surviving joint Annuitant and, for If the deceased was a Joint Owner, the surviving
Annuity Option 4, during any remaining specified Joint Owner becomes the sole Owner.
period of time. For more information, see section 2,
The Annuity Phase Annuity Options.
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D EA T H B ENEF IT P AY M ENT O PT IO N S
If you have not previously designated a death benefit payment option, a Beneficiary must request the death benefit be
paid under one of the death benefit payment options below. If the Beneficiary is the spouse of the deceased Owner, he/she
can choose to continue the Contract in his/her own name. An election by the spouse to continue the Contract must be
made on the death claim form before we pay the death benefit. If the Contract continues, we will increase the Contract
Value to equal the death benefit if that amount is greater than the Contract Value as of the Business Day we receive in
good order at our Service Center both due proof of death and an election of the death benefit payment option. If a lump
sum payment is requested, we will pay the amount within seven days of our receipt of proof of death and a valid election
of a death benefit payment option, including any required governmental forms, unless the suspension of payments or
transfers provision is in effect. Payment of the death benefit may be delayed, pending receipt of any applicable tax
consents and/or state forms.
Option A: Lump sum payment of the death benefit. We will not deduct the contract maintenance charge at the time of a
full withdrawal if the distribution is due to death.
Option B: Payment of the entire death benefit within five years of the date of any Owners death. We will assess the full
contract maintenance charge on each Beneficiarys portion on each Contract Anniversary. However, we will waive the
contract maintenance charge if the Contract Value at the time we are to deduct the charge is at least $75,000.
Option C: If the Beneficiary is an individual, payment of the death benefit as a Traditional Annuity Payment under an
Annuity Option over the lifetime of the Beneficiary or over a period not extending beyond the life expectancy of the
Beneficiary. Distribution under this option must begin within one year of the date of any Owners death. We will continue
to assess the full contract maintenance charge on each Beneficiarys portion proportionately over the Traditional Annuity
Payments. However, we will waive the contract maintenance charge if the Contract Value on the Income Date is at least
$75,000. GMIB Payments are not available under this option.
Any portion of the death benefit not applied to Traditional Annuity Payments within one year of the date of the Owners
death must be distributed within five years of the date of death.
If the Contract is owned by a non-individual, then we treat the death of any Annuitant as the death of an Owner for
purposes of the Internal Revenue Codes distribution at death rules, which are set forth in Section 72(s) of the Code.
In all events, notwithstanding any provision to the contrary in the Contract or this prospectus, the Contract will be
interpreted and administered in accordance with Section 72(s) of the Code.
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12. OTHER INFORMATION

AL LIANZ L IFE
Allianz Life is a stock life insurance company organized under the laws of the state of Minnesota in 1896. Our address is
5701 Golden Hills Drive, Minneapolis, MN 55416. We offer fixed and variable annuities, individual and group life
insurance, and long-term care insurance. We are licensed to do direct business in 49 states and the District of Columbia.
We are a subsidiary of Allianz SE, a provider of integrated financial services.
TH E SEPARAT E A CCOUNT
We established Allianz Life Variable Account B (the Separate Account) as a separate account under Minnesota insurance
law on May 31, 1985. The Separate Account is registered with the Securities and Exchange Commission as a unit
investment trust under the Investment Company Act of 1940. The SEC does not supervise our management of the
Separate Account.
The Separate Account holds the assets that underlie the Contracts, except assets allocated to our general account. We keep
the Separate Account assets separate from the assets of our general account and other separate accounts. The Separate
Account is divided into subaccounts, each of which invests exclusively in a single Investment Option.
We own the assets of the Separate Account. We credit gains to or charge losses against the Separate Account, whether or
not realized, without regard to the performance of other investment accounts. The Separate Accounts assets may not be
used to pay any of our liabilities, other than those arising from the Contracts. If the Separate Accounts assets exceed the
required reserves and other liabilities, we may transfer the excess to our general account. Amounts transferred to our
general account will represent seed money invested by us or earned fees and charges. The obligations of the Separate
Account are not generalized obligations of Allianz Life. The obligations under the Contracts are obligations of Allianz
Life.
D I STR IBU T IO N
Allianz Life Financial Services, LLC (Allianz Life Financial), a wholly-owned subsidiary of Allianz Life Insurance
Company of North America, serves as principal underwriter for the Contracts. Allianz Life Financial, a limited liability
company organized in Minnesota, is located at 5701 Golden Hills Drive, Minneapolis, MN 55416. Allianz Life Financial
is registered as a broker/dealer with the SEC under the Securities Exchange Act of 1934 (the 1934 Act), as well as with
the securities commissions in the states in which it operates, and is a member of the Financial Industry Regulatory
Authority (FINRA). Allianz Life Financial is not a member of Securities Investors Protection Corporation. More
information about Allianz Life Financial is available at http://www.finra.org or by calling 1-800-289-9999. You also can
obtain an investor brochure from FINRA describing its Public Disclosure Program.
We have entered into a distribution agreement with our affiliate Allianz Life Financial for the distribution and sale of the
Contracts. Allianz Life Financial does not itself sell the Contracts on a retail basis. Rather, Allianz Life Financial enters
into selling agreements with other broker/dealers registered under the 1934 Act (selling firms) for the sale of the
Contracts. These selling firms include third party broker/dealers and Questar Capital Corporation, an affiliated
broker/dealer. We pay sales commissions to the selling firms and their registered representatives. Investment Options that
assess Rule 12b-1 fees make payments of the fees to Allianz Life Financial as consideration for providing certain services
and incurring certain expenses permitted under the Investment Options plan. These payments typically equal 0.25% of an
Investment Options average daily net assets for the most recent calendar year. The investment adviser and/or subadviser
(and/or their affiliates) of an Investment Option may from time to time make payments for administrative services to
Allianz Life Financial or its affiliates.
The maximum commission payable to the selling firms for Contract sales is expected not to exceed 7% of Purchase
Payments. Sometimes, we enter into an agreement with a selling firm to pay commissions as a combination of a certain
amount of the commission at the time of sale and a trail commission which, when totaled, could exceed 7% of Purchase
Payments.
We may fund Allianz Life Financials operating and other expenses, including: overhead; legal and accounting fees;
registered representative training; compensation for the Allianz Life Financial management team; and other expenses
associated with the Contracts. Registered representatives and their managers are also eligible for various benefits, such as
production incentive bonuses, insurance benefits, and non-cash compensation items that we may provide jointly with
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Allianz Life Financial. Non-cash items include conferences, seminars and trips (including travel, lodging and meals in
connection therewith), entertainment, awards, merchandise and other similar items.
Selling firms and their registered representatives and managers may receive other payments from us for services that do
not directly involve the sale of the Contracts, including payments made for the recruitment and training of personnel,
production of promotional literature and similar services. In addition, certain firms and their representatives may receive
compensation for distribution and administrative services when acting in a wholesaling capacity and working with retail
firms.
We and/or Allianz Life Financial may pay certain selling firms additional marketing support allowances for:
marketing services and increased access to registered representatives;
sales promotions relating to the Contracts;
costs associated with sales conferences and educational seminars for their registered representatives;
the cost of client meetings and presentations; and
other sales expenses incurred by them.
We retain substantial discretion in determining whether to grant a marketing support payment to a particular broker/dealer
firm and the amount of any such payment. However, we do consider a number of specific factors in determining
marketing support payments, which may include a review of the following:
the level of existing sales and assets held in contracts issued by us that are sold through the broker/dealer firm and the
potential for new or additional sales;
the organizational fit between the broker/dealer firm and the type of wholesaling and marketing force we operate;
whether the broker/dealer firms operational, IT, and support services structure and requirements are compatible with
our method of operation;
whether the broker/dealer firms product mix is oriented toward our core markets;
whether the broker/dealer firm has a structure facilitating a marketing support arrangement, such as frequent
registered representative meetings and training sessions;
the potential return on investment of investing in a particular firms system;
our potential ability to obtain a significant level of the market share in the broker/dealer firms distribution channel;
the broker/dealer firms registered representative and customer profiles; and
the prominence and reputation of the broker/dealer firm in its marketing channel.
We may also make payments for marketing and wholesaling support to broker/dealer affiliates of Investment Options that
are available through the variable annuities we offer. Additional information regarding marketing support payments can
be found in the Distributor section of the Statement of Additional Information.
We and/or Allianz Life Financial may make bonus payments to certain selling firms based on aggregate sales of our
variable insurance contracts (including this Contract) or persistency standards, or as part of a special promotion. These
additional payments are not offered to all selling firms, and the terms of any particular agreement governing the payments
may vary among selling firms. In some instances, the amount paid may be significant.
A portion of the payments made to selling firms may be passed on to their registered representatives in accordance with
their internal compensation programs. Those programs may also include other types of cash and non-cash compensation
and other benefits. Ask your registered representative for further information about what your registered representative
and the selling firm for which he or she works may receive in connection with your purchase of a Contract.
We intend to recover commissions and other sales expenses through fees and charges imposed under the Contract.
Commissions paid on the Contract, including other incentives or payments, are not charged directly to the Owners or the
Separate Account.
We offer the Contracts to the public on a continuous basis. We anticipate continuing to offer the Contracts but reserve the
right to discontinue the offering.
A DD IT IO NAL CR ED IT S F O R C ER T A IN G RO U P S
We may credit additional amounts to a Contract instead of modifying charges because of special circumstances that result
in lower sales or administrative expenses or better than expected mortality or persistency experience.
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A DM IN I STRAT ION /A L L IA NZ S ER V ICE C ENT ER
Delaware Valley Financial Services, LLC (DVFS or the Allianz Service Center) performs certain administrative services
regarding the Contracts. DVFS is a wholly owned subsidiary of Allianz Life, and is located at 300 Berwyn Park, Berwyn,
Pennsylvania. The administrative services performed by our Service Center include:
issuance and maintenance of the Contracts,
maintenance of Owner records,
processing and mailing of account statements and other mailings to Owners, and
routine customer service including:
responding to Owner correspondence and inquiries,
processing of Contract changes,
processing withdrawal requests (both partial and total), and
processing annuitization requests.
Historically, we have compensated DVFS based on a specified fee per transaction and an additional negotiated fee for
enhancements to computer systems used to process our business. Currently, we are on a cost basis. For the past three
calendar years, Allianz Life Financial has paid DVFS $71,889,235.98 for performing administrative services regarding
the Contracts.
To reduce expenses, only one copy of most financial reports and prospectuses, including reports and prospectuses for the
Investment Options, will be mailed to your household, even if you or other persons in your household have more than one
contract issued by us or our affiliate. Call us at the toll-free number listed at the back of this prospectus if you need
additional copies of financial reports, prospectuses, or annual and semiannual reports, or if you would like to receive one
copy for each contract in future mailings.
L EGAL PROC E ED ING S
We and our subsidiaries, like other life insurance companies, from time to time are involved in legal proceedings of
various kinds, including regulatory proceedings and individual and class action lawsuits. In some legal proceedings
involving insurers, substantial damages have been sought and/or material settlement payments have been made. Although
the outcome of any such proceedings cannot be predicted with certainty, we believe that, at the present time, there are no
pending or threatened legal proceedings to which we, the Separate Account, or Allianz Life Financial is a party that are
reasonably likely to materially affect the Separate Account, our ability to meet our obligations under the Contracts, or
Allianz Life Financials ability to perform its obligations.
F INA NC IAL STAT EMENTS
The consolidated financial statements of Allianz Life and the financial statements of the Separate Account have been
included in the Statement of Additional Information.
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13. GLOSSARY
This prospectus is written in plain English to make it as understandable as possible. However, there are some technical
words or terms that are defined below and are capitalized in the prospectus. The following is a list of common
abbreviations used in this prospectus:
FPA = Fixed Period Account GWB = Guaranteed Withdrawal Benefit
GAV = Guaranteed Account Value MAV = Maximum Anniversary Value
GMDB = Guaranteed Minimum Death Benefit MVA = Market Value Adjustment
GMIB = Guaranteed Minimum Income Benefit
Account Period the length of time for a Fixed Period Account. Account Periods range from one to ten years.
Accumulation Phase the period of time before you apply the entire Contract Value to Annuity Payments. Subject to
certain restrictions, you can make additional Purchase Payments during this time. The Accumulation Phase may occur at
the same time as the Annuity Phase if you take Partial Annuitizations.
Accumulation Unit the units into which we convert amounts invested in the subaccounts that invest in the Investment
Options during the Accumulation Phase.
Annuitant the individual upon whose life we base the Annuity Payments. Subject to our approval, the Owner
designates the Annuitant and can add a joint Annuitant for the Annuity Phase if they take a Full Annuitization.
Annuity Options the income options available to you under the Contract.
Annuity Payments payments made by us to the Payee pursuant to the Annuity Option chosen. Annuity Payments may
be variable, fixed, or a combination of both variable and fixed.
Annuity Phase the phase the Contract is in once Annuity Payments begin. This may occur at the same time as the
Accumulation Phase if you take a Partial Annuitization.
Annuity Unit the units into which we convert amounts invested in the subaccounts that invest in the Investment
Options during the Annuity Phase.
Beneficiary the person(s) or entity the Owner designates to receive any death benefit.
Business Day each day on which the New York Stock Exchange is open for trading, except when an Investment Option
does not value its shares. Allianz Life is open for business on each day that the New York Stock Exchange is open. Our
Business Day closes when regular trading on the New York Stock Exchange closes, which is usually at 4:00 p.m. Eastern
Time.
Contract the deferred annuity contract described by this prospectus that allows you to accumulate money tax deferred
by making one or more Purchase Payments. It provides for lifetime or other forms of Annuity Payments beginning on the
Income Date.
Contract Anniversary a 12-month anniversary of the Issue Date of your Contract. If the Contract Anniversary does not
occur on a Business Day, we will consider it to occur on the next Business Day.
Contract Value on any Business Day it is equal to the sum of the values in your selected Investment Choices. It does
not include amounts applied to Annuity Payments.
Contract Year any period of 12 months commencing on the Issue Date and on each Contract Anniversary thereafter.
February 2007 Contract this Contract is available in all states except Washington.
Fixed Account Value the portion of your Contract Value that is in our general account during the Accumulation Phase.
71
FPAs (Fixed Period Accounts) a type of Investment Choice under our general account that earns interest and is only
available during the Accumulation Phase. FPAs have Account Periods of anywhere from one to ten years and only one
FPA is available for Purchase Payments or transfers in each Contract Year. You can only allocate up to 50% of any
Purchase Payment to the FPAs during the Accumulation Phase. However, in some states the FPAs may only be available
for GAV Transfers we make if your Contract includes the Living Guarantees. In addition, if your Contract includes the
Living Guarantees, we may transfer more than 50% of the total Purchase Payments received to the FPAs beginning on the
second Contract Anniversary. Withdrawals/transfers out of an FPA may be subject to a Market Value Adjustment, which
may increase or decrease your Contract Value and/or the amount the withdrawal/transfer.
Full Annuitization the application of the entire Contract Value to Annuity Payments. You will be required to take a
Full Annuitization of your Contract on or before the maximum permitted Income Date. Upon Full Annuitization
you will no longer have a Contract Value, any periodic withdrawal or income payments (other than Annuity Payments)
will stop, and the death benefit will terminate. In addition, if your Contract includes the Living Guarantees, the FPAs and
the Guaranteed Withdrawal Benefit will no longer be available to you and you will no longer receive any True Ups.
GAV (Guaranteed Account Value) Benefit a benefit under the Living Guarantees that provides a level of protection
for the principal you have invested in the Contract as well as locking in investment gains from prior anniversaries.
GAV Fixed Account Minimum if your Contract includes the Living Guarantees, this is the minimum amount of
Contract Value that we determine must be allocated to an FPA to support the GAV Benefit. You generally cannot reduce
the Fixed Account Value in the FPAs below the GAV Fixed Account Minimum.
GAV Transfers if your Contract includes the Living Guarantees, these are the transfers we make between your selected
Investment Options and the FPAs as a result of our monitoring your daily Contract Value in order to support the GAV
Benefit.
GMDB (Guaranteed Minimum Death Benefit) you can select one of two GMDBs at Contract issue that may provide
different guaranteed death benefit values. The Traditional GMDB is the default death benefit, or you can select the
Enhanced GMDB for an additional M&E charge, subject to certain age restrictions and state availability.
GMIB (Guaranteed Minimum Income Benefit) a benefit under the Living Guarantees (in most states) that provides
guaranteed minimum fixed income in the form of Annuity Payments (GMIB Payments).
GMIB Payment fixed Annuity Payments we make under the GMIB.
GWB (Guaranteed Withdrawal Benefit) a benefit under the Living Guarantees that provides a guaranteed income
through partial withdrawals, regardless of your Contract Value, beginning on the second Contract Anniversary.
Income Date the date we begin making Annuity Payments to the Payee from the Contract. This date must be the first
day of a calendar month. Because the Contract allows for Partial Annuitizations there may be multiple Income Dates.
Investment Choices the Investment Options and any general account Investment Choices available under the Contract
for Purchase Payments or transfers. We may add, substitute or remove Investment Choices in the future.
Investment Options the variable Investment Choices available under the Separate Account. You may invest in up to 15
of the Investment Options at any one time.
Issue Date the date shown on the Contract that starts the first Contract Year. Contract Anniversaries and Contract Years
are measured from the Issue Date.
Joint Owners two Owners who own a Non-Qualified Contract. We do not allow Joint Owners to take Partial
Annuitizations.
Living Guarantees at issue you can select either a Contract with Living Guarantees or a Contract without Living
Guarantees. If you do not make a selection, the Living Guarantees will apply to your Contract. After the Issue Date
the Living Guarantees cannot be added to or removed from your Contract. The Living Guarantees include the GAV
Benefit, the GMIB and the GWB. These benefits are not available individually. The GMIB may not be available in all
states. There are no additional fees or charges associated with these benefits.
MAV (Maximum Anniversary Value) a calculation used in determining the GMIB value and the Enhanced GMDB
value.
72
MVA (Market Value Adjustment) a positive or negative adjustment to amounts withdrawn or transferred from an
FPA unless they are made within 30 days of the end of an Account Period.
Non-Qualified Contract a Contract that is not purchased under a pension or retirement plan qualified under sections of
the Internal Revenue Code.
Original Contract this Contract is only for sale in the state of Washington.
Owner you, your and yours. The person or entity (or persons or entities if there are Joint Owners) named in the
Contract who may exercise all rights granted by the Contract. The Owner is designated at Contract issue.
Partial Annuitization the application of only part of the Contract Value to Traditional Annuity Payments (or part of
the GMIB value to GMIB Payments if your Contract includes a GMIB). If you take a Partial Annuitization, the
Accumulation Phase and Annuity Phase of the Contract may occur at the same time. You can take one Partial
Annuitization every 12 months. The maximum number of annuitizations we allow at any one time is five. Partial
Annuitizations are not available to Joint Owners. If you take a Partial Annuitization, there can be only one Owner, the
Owner must be the Annuitant, and we will not allow the Owner to designate a joint Annuitant.
Payee the person or entity you designate (subject to our approval) to receive Annuity Payments during the Annuity
Phase. If you do not designate a Payee by the Income Date, we will make Annuity Payments to the Owner.
Purchase Payment the money you put in the Contract.
Qualified Contract a Contract purchased under a pension or retirement plan qualified under sections of the Internal
Revenue Code (for example, 401(k) and H.R. 10 plans), Individual Retirement Annuities (IRAs), or Tax-Sheltered
Annuities (referred to as TSA or 403(b) contracts). Currently, we may issue Qualified Contracts that may include, but are
not limited to, Roth IRAs, Traditional IRAs, Simplified Employee Pension (SEP) IRAs and Inherited IRAs.
Separate Account Allianz Life Variable Account B is the Separate Account that issues your Contract. It is a separate
investment account of Allianz Life. The Separate Account holds the assets invested in the Investment Options that
underlie the Contracts. The Separate Account is divided into subaccounts, each of which invests exclusively in a single
Investment Option.
Separate Account Value the portion of your Contract Value that is in the subaccounts of the Separate Account during
the Accumulation Phase. We calculate the Separate Account Value by multiplying the Accumulation Unit value in each
subaccount by the number of Accumulation Units for each subaccount and then adding those results together.
Service Center the Allianz Service Center. Our Service Center address and telephone number are listed at the back of
this prospectus.
Traditional Annuity Payments Annuity Payments we make to the Payee based on the Contract Value.
True Up an amount we may pay into your Contract under the GAV Benefit. On the fifth and subsequent Contract
Anniversaries, we will compare your Contract Value to the GAV established five years ago, adjusted for any partial
withdrawals taken in the last five Contract Years. If your Contract Value on these occasions is less than this amount, we
will pay into your Contract an amount equal to that difference. We will allocate this amount to your Investment Options
in proportion to the amount of Separate Account Value in each of the Investment Options on the date of allocation. We
refer to this payment as a True Up.
Withdrawal Charge Basis the total amount under your Contract that is subject to a withdrawal charge.
73
14. TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION (SAI)

Allianz Life............................................................................ 2
Experts.................................................................................. 2
Legal Opinions..................................................................... 2
Distributor............................................................................. 2
Reduction or Elimination of the Withdrawal Charge ........ 3
Federal Tax Status............................................................... 3
General............................................................................ 3
Diversification .................................................................. 4
Owner Control ................................................................. 4
Contracts Owned by Non-Individuals .............................. 5
Income Tax Withholding .................................................. 5
Required Distributions ..................................................... 5
Qualified Contracts .......................................................... 5
Guaranteed Account Value (GAV) Transfers .................... 7
Annuity Provisions ............................................................ 13
Annuity Units/Calculating Annuity Payments................. 13
Mortality and Expense Risk Guarantee ........................... 13
Information on the May 2005 Contract............................. 14
Financial Statements......................................................... 14
Appendix Condensed Financial Information................ 15
74
15. PRIVACY AND SECURITY STATEMENT

January 2008 If you visit one of our websites, we may use cookies
Your privacy is a high priority for Allianz. Our pledge (small text files sent from our site to your hard drive).
to protect your privacy is reflected in our Privacy and These cookies help us to recognize repeat visitors and
Security Statement. This statement outlines our allow easy access to and use of the site. We do not use
principles for collecting, using and protecting your cookies to gather personal information. The cookies
personal information. only enable you to use our website more easily.
This statement applies to all of the companies within the Personal information about you Allianz shares
Allianz family of companies that issue insurance
policies. The law allows us to share personal Allianz does not share personal information about
information among our insurance companies. The law current or former customers with anyone, except as
does not allow customers to prevent these disclosures. A allowed by law. Allowed by law means that we
list of our companies can be found at the end of this may share your personal information, such as your
notice. name, address, and policy information, as follows:
To consumer reporting agencies to obtain a credit
Allianz does not sell your personal information to report or motor vehicle report. These reports are
anyone. used to determine eligibility for coverage or to
We do not share your personal information with anyone process your requested transactions.
for their own marketing purposes. For this reason, To your insurance agent so that they can perform
depending on your state of residence, no opt-in, opt- services for you.
out, or authorization is required. We also do not share To medical professionals in order to process your
your personal information with any of our affiliated claim.
companies outside of the Allianz family of companies. To a state Department of Insurance in order to
Personal information about you Allianz collects examine our records or business practices.
To state or federal law enforcement agency, as
Allianz collects personal information about you so that
required by law, or to report suspected fraud
we can process the insurance transactions you request.
activities.
We limit the amount of personal information collected
to what we feel is needed to maintain your account. We To research groups to conduct studies on claims
may collect your personal information from the results. No individual is identified in any study or
following sources: report.
From you, either directly or through your agent. This We advise the vendors with whom we legally share
may include information on your insurance your personal information of our privacy policy. We
application or other forms you may complete, such make every effort to use vendors whose privacy policy
as your name, address and telephone number. reflects our own.
From others, through the process of handling a Allianz policies and practices regarding security of
claim. This may include information from medical personal information
or accident reports.
From your doctor or during a home visit by a health Allianz uses computer hardware and software tools to
assessment professional. This may include medical maintain physical and electronic safeguards. These
information about you gathered with your written safeguards comply with applicable federal and state
authorization. regulations. We restrict access to personal information
about you to those employees who need the information
From your relationship with us, such as the number
to service your policy. Allianz works hard to ensure that
of years you have been a customer or the types of
our websites are secure. We use state of the art
insurance products you purchased.
technology to protect the personal information that may
From a consumer reporting agency such as a credit be shared over these sites.
or motor vehicle report. The information in these
reports may be kept by the consumer reporting
agency and shared with others.
75
Your ability to access and correct your personal Montana residents: You may write to us and also ask
information for a record of any disclosure of your medical
(residents of AZ, AK, CA, CT, GA, IL, ME, MA, information made within the last three years.
MN, MT, NC, NV, NJ, OH, OR, and VA)
Notification of change
If you wish to review your personal information, please
Your trust is one of our most important assets. If we
write us at the address below. Provide your full name,
revise our privacy practices in the future, we will notify
address and policy number(s). For your protection,
you prior to introducing any changes. This Privacy and
please have your request notarized. This will ensure the
Security Statement is also displayed on our website.
identity of the person requesting the information.
(www.allianzlife.com)
Within 30 working days, you may see and copy your
For more information or if you have questions
information in person. If you prefer, we will send you a
copy of your information. You will not be given access If you have any questions or concerns about our privacy
to your information collected or in connection with a policies or procedures, please call the Corporate
claim, or a civil or criminal proceeding. If medical Compliance Department at 800.328.5600, write us at the
information is contained in your file, we may request following address, or visit www.allianzlife.com.
that you name a medical professional to whom we will
send the information.
PO Box 1344
If you believe any of your information is incorrect, Minneapolis, MN 55440-1344
notify us in writing at the address below. Within 30 Allianz family of companies:
working days, we will let you know if our review has
resulted in a correction of your information. If we do
not believe there is an error, you may file a statement Allianz Life Financial Services, LLC
disputing the information. We will attach the statement M40018-B (R-2/2008)
to your file. We will send any corrections we make, or
your statement, to anyone we shared your information
with over the past two years, and to anyone who may
receive your information from us in the future. We do
not control the information about you obtained from a
consumer reporting agency or a Department of Motor
Vehicles. We will provide you with the names and
addresses of these agencies so that you can contact them
directly.
76
APPENDIX A ANNUAL OPERATING EXPENSES FOR EACH INVESTMENT OPTION

This table describes, in detail, the annual expenses for each of the Investment Options. We show the expenses as a
percentage of an Investment Options average daily net assets for the most recent calendar year. Except for the AZL
Funds, the PIMCO VIT portfolios, and the Premier VIT OpCap Mid Cap Portfolio, neither the Investment Options nor
their advisers are affiliated with Allianz Life. Expenses may vary in current and future years. The investment advisers for
the Investment Options provided the fee and expense information and we did not independently verify it. See the
Investment Options prospectuses for further information regarding the expenses you may expect to pay.
Annual Investment Option operating expenses before Total annual
fee waivers or expense reimbursements operating
expenses after
Acquired Amount of contractual fee
fund fees contractual fee waivers or
Management Rule 12b-1 Service Other and waivers and expense
Investment Option fees fees* fees expenses expenses Total reimbursements reimbursements
AIM
AZL AIM International Equity Fund(1) .90 .25 .18 1.33 1.33
BLACKROCK
AZL Money Market Fund(1) .35 .25 .09 .69 .69
BlackRock Global Allocation V.I. Fund .55 .25 .23 1.03 1.03
Class 3(6)
CLEARBRIDGE
AZL LMP Large Cap Growth Fund(1) .80 .25 .08 1.13 1.13
COLUMBIA
AZL Columbia Technology Fund(1) .80 .25 .15 1.20 1.20
DAVIS
AZL Davis NY Venture Fund .75 .09 .84 .84
Class 1(1),(8),(9)
AZL Davis NY Venture Fund .75 .25 .09 1.09 1.09
Class 2(1),(8)
Davis VA Financial Portfolio(7) .75 .10 .85 .85
Davis VA Value Portfolio(7) .75 .06 .81 .81
DREYFUS
AZL Dreyfus Founders Equity Growth .77 .25 .16 1.18 1.18
Fund(1)
AZL Dreyfus Premier Small Cap Value .90 .14 1.04 1.04
Fund Class 1(1),(8),(9)
AZL Dreyfus Premier Small Cap Value .90 .25 .14 1.29 1.29
Fund Class 2(1),(8)
AZL S&P 500 Index Fund .17 .25 .31 .73 .24 .49
Class 2(1),(8)
AZL Small Cap Stock Index Fund(1) .26 .25 .36 .87 .29 .58
Dreyfus IP Small Cap Stock Index .35 .25 .01 .61 .61
Portfolio Service Shares(7)
Dreyfus Stock Index Fund, Inc. .25 .25 .02 .52 .52
Service Shares(7)
FIRST TRUST
AZL First Trust Target Double Play .60 .25 .18 1.03 .24 .79
Fund(1)
FRANKLIN TEMPLETON
AZL Franklin Small Cap Value Fund(1) .75 .25 .11 1.11 1.11
Franklin Global Communications .54 .25 .07 .86 .86
Securities Fund Class 2(3)
Franklin Global Real Estate Securities .75 .25 .31 1.31 .42 .89
Fund Class 2(4)
Franklin Growth and Income Securities .48 .25 .04 .77 .77
Fund Class 2(3)
Franklin High Income Securites Fund .55 .25 .06 .86 .86
Class 2(3)
77
expenses after
Franklin Income Securities Fund .45 .25 .02 .72 .72
Class 2(3)
Franklin Large Cap Growth Securities .70 .25 .04 .99 .99
Fund Class 2(3)
Franklin Rising Dividends Securities .58 .25 .02 .01 .86 .01 .85
Fund Class 2(3),(5)
Franklin Small-Mid Cap Growth .47 .25 .28 .01 1.01 .01 1.00
Securities Fund Class 2(5)
Franklin Small Cap Value Securities .51 .25 .15 .02 .93 .02 .91
Fund Class 2(5)
Franklin Templeton VIP Founding .00 .25 .41 .65 1.31 .28 1.03
Funds Allocation Fund Class 2(10)
Franklin U.S. Government Fund .49 .25 .04 .78 .78
Class 2(3)
Franklin Zero Coupon Fund 2010 .61 .05 .66 .66
Class 1(3)
Mutual Discovery Securities Fund .80 .25 .17 1.22 1.22
Class 2
Mutual Shares Securities Fund .59 .25 .13 .97 .97
Class 2
Templeton Developing Markets 1.23 .25 .25 1.73 1.73
Securities Fund Class 2
Templeton Foreign Securities Fund .63 .25 .14 .02 1.04 .02 1.02
Class 2(5)
Templeton Global Income Securities .50 .25 .14 .89 .89
Fund Class 2(3)
Templeton Growth Securities Fund .73 .25 .03 1.01 1.01
Class 2(3)
JENNISON
AZL Jennison 20/20 Focus Fund(1) .77 .25 .10 1.12 1.12
AZL Jennison Growth Fund(1) .80 .25 .17 1.22 1.22
Jennison 20/20 Focus Portfolio .75 .25 .22 1.22 1.22
Class 2(7)
LEGG MASON
AZL Legg Mason Growth Fund(1) .85 .25 .11 1.21 1.21
AZL Legg Mason Value Fund(1) .75 .25 .09 1.09 1.09
NEUBERGER BERMAN
AZL Neuberger Berman Regency .75 .25 .10 1.10 1.10
Fund(1)
NICHOLAS-APPLEGATE
AZL NACM International Fund(1) .85 .25 .35 1.45 1.45
OPPENHEIMER CAPITAL
AZL OCC Opportunity Fund(1) .85 .25 .11 1.21 1.21
AZL OCC Value Fund(1) .75 .25 .16 1.16 1.16
OpCap Mid Cap Portfolio(11) .80 .19 .99 .99
OPPENHEIMER FUNDS
AZL Oppenheimer Global Fund .90 .15 1.05 1.05
Class 1(1),(8),(9)
AZL Oppenheimer Global Fund .90 .25 .15 1.30 1.30
Class 2(1),(8)
AZL Oppenheimer International .73 .25 .21 1.19 1.19
Growth Fund(1)
AZL Oppenheimer Main Street Fund .80 .15 .95 .95
Class 1(1),(8),(9)
AZL Oppenheimer Main Street Fund .80 .25 .15 1.20 1.20
Class 2(1),(8)
78
expenses after
Oppenheimer Global Securities .62 .03 .65 .65
Fund/VA(7)
Oppenheimer High Income Fund/VA(7) .73 .03 .76 .76

Oppenheimer Main Street Fund /VA(7) .64 .01 .65 .65
PIMCO
AZL PIMCO Fundamental IndexPLUS .75 .25 .21 1.21 .01 1.20
Total Return Fund(1)
PIMCO VIT All Asset Portfolio .18 .15 .25 .69 1.27 .02 1.25
Admin. Class(7),(12),(13)
PIMCO VIT CommodityRealReturn .49 .15 .31 .05 1.00 .05 .95
Strategy Portfolio Admin. Class(2),(7) ,(13)
PIMCO VIT Emerging Markets Bond .45 .15 .40 1.00 1.00
Portfolio Admin. Class(7)
PIMCO VIT Global Bond Portfolio .25 .15 .50 .90 .90
(Unhedged) Admin. Class(7)
PIMCO VIT High Yield Portfolio .25 .15 .35 .75 .75
Admin. Class(7)
PIMCO VIT Real Return Portfolio .25 .15 .25 .65 .65
Admin. Class(7)

PIMCO VIT StocksPLUS Growth and .25 .15 .10 .50 .50
Income Portfolio Admin. Class(7)
PIMCO VIT Total Return Portfolio .25 .15 .43 .83 .83
Admin. Class(7)
PRUDENTIAL
SP International Growth Portfolio .85 .25 .24 1.34 1.34
Class 2(7)
SP Strategic Partners Focused Growth .90 .25 .40 1.55 1.55
Portfolio Class 2(7)
SCHRODER
AZL Schroder Emerging Markets Equity 1.23 .25 .48 1.96 .31 1.65
Fund Class 2(1),(8)
AZL Schroder International Small Cap 1.00 .25 .27 1.52 1.52
Fund(1)
SELIGMAN
Seligman Smaller-Cap Value Portfolio 1.00 .14 1.14 1.14
Class 1(7)
TARGETPLUS PORTFOLIOS
AZL TargetPLUS Balanced Fund(1) .52 .25 .53 1.30 .41 .89
AZL TargetPLUS Equity Fund(1) .60 .25 .29 1.14 .35 .79
AZL TargetPLUS Growth Fund(1) .52 .25 .29 1.06 .17 .89
AZL TargetPLUS Moderate Fund(1) .52 .25 .37 1.14 .25 .89
TURNER
AZL Turner Quantitative Small Cap .85 .25 .13 1.23 1.23
Growth Fund(1)
VAN KAMPEN
AZL Van Kampen Comstock Fund(1) .72 .25 .11 1.08 1.08
AZL Van Kampen Equity and Income .75 .25 .11 1.11 1.11
Fund(1)
AZL Van Kampen Global Franchise .95 .25 .12 1.32 1.32
Fund(1)
AZL Van Kampen Global Real Estate .90 .25 .22 1.37 .02 1.35
Fund(1)
AZL Van Kampen Growth and Income .75 .25 .09 1.09 1.09
Fund(1)
AZL Van Kampen Mid Cap Growth .80 .25 .12 1.17 1.17
Fund(1)
79
* The 12b-1 fees cover certain distribution and shareholder support services provided by the companies selling Contracts. Our principal underwriter,
Allianz Life Financial Services, LLC, will receive 12b-1 fees, except for those classes of shares that do not pay a 12b-1 fee, as identified in footnote
(8).
(1) Allianz Investment Management LLC (AZL), the Investment Options investment adviser, and the Investment Option have entered into a written
contract limiting operating expenses to the after waiver amount listed above through April 30, 2009. The operating expenses covered by the
expense limitation agreement include fees deducted from Investment Option assets such as audit fees and payments to independent trustees, but do
not include the operating expenses of other investment companies in which the Investment Option may invest (acquired fund fees and expenses).
The Investment Option is authorized to reimburse AZL for management fees previously waived and/or for the cost of other expenses paid by AZL
provided that such reimbursement will not cause the Investment Option to exceed the expense limits in effect at the time of such reimbursement.
The Investment Options ability to reimburse AZL in this manner only applies to fees paid or reimbursement made by AZL within the three fiscal
years prior to the date of such reimbursement.
(2) PIMCO has contractually agreed to waive the advisory fee and the administration fee it receives from the Portfolio in an amount equal to the
advisory fee and administration fee, respectively, paid to PIMCO by the subsidiary. This waiver may not be terminated by PIMCO and will remain
in effect for as long as PIMCOs contract with the subsidiary is in place.
(3) The Fund administration fee is paid indirectly through the management fee.
(4) The Funds fees and expenses have been restated as if the Funds new investment management and fund administration agreements had been in
place for the fiscal year ended December 31, 2007. The manager and administrator, however, have contractually agreed in advance to waive or limit
their respective fees so that the increase in investment management and fund administration fees paid by the Fund are phased in over a five year
period, with there being no increase in the rate of such fees for the first year ending April 30, 2008. For each of the four years thereafter through
April 30, 2012, the manager and administrator will receive one-fifth of the increase in the rate of fees. Beginning May 1, 2012, the full new
investment management and administration fees will then be in effect.
(5) The manager has agreed in advance to reduce its fee from assets invested by the Fund in a Franklin Templeton money market fund (the acquired
fund) to the extent that the Funds fees and expenses are due to those of the acquired fund. This reduction is required by the Trusts board of
trustees and an exemptive order of the Securities and Exchange Commission (SEC).
(6) The Investment Option commenced operations under this Contract as of May 1, 2008. Therefore, the expenses shown are estimated for the current
calendar year.
(7) We may enter into certain arrangements under which we, or our affiliate Allianz Life Financial Services, LLC, the principal underwriter for the
Contracts, are compensated by the Investment Options advisers, distributors and/or affiliates for the administrative services and benefits which we
provide to the Investment Options. The amount of the compensation usually is based on the aggregate assets of the Investment Options of other
investment portfolios from contracts that we issue or administer. Some advisers may pay us more or less than others, however, the maximum fee
that we currently receive is at the annual rate of 0.25% of the average aggregate amount invested by us in the Investment Options.
(8) The Investment Option has both Class 1 shares and Class 2 shares. Class 2 shares pay a 12b-1 fee of up to 0.25% of its average daily assets. Class 1
shares do not pay a 12b-1 fee.
(9) Not currently available.
(10) Effective December 1, 2007, the administrator has contractually agreed to waive or limit its fee and to assume as its own expense certain expenses,
otherwise payable by the Fund, excluding acquired funds fees and expenses, so that direct operating expenses of the fund do not exceed 0.38%
(other than certain non-routine expenses or costs, including those relating to litigation, indemnification, reorganizations, and liquidations) until
April 30, 2009.
(11) OpCap Advisors has contractually agreed to reduce the total annual portfolio operating expenses to the extent they would exceed 1.00% (net of any
expenses offset by earnings credits from the custodian bank) of the Portfolios average daily net assets. This reduction of annual portfolio operating
expenses is guaranteed by OpCap Advisors through December 31, 2015. Net portfolio operating expenses do not reflect a reduction of custody
expenses offset by custody credits earned on cash balances at the custodian bank.
(12) Acquired fund fees and expenses for the Portfolio are based upon an allocation of the Portfolios assets among the underlying funds and upon the
total annual operating expenses of the institutional shares of these underlying funds. Acquired fund fees and expenses will vary with changes in the
expenses of the underlying funds, as well as allocation of the Portfolios assets, and may be higher or lower than those shown above.
(13) PIMCO has contractually agreed to waive the advisory fee and/or administration fee. See the Investment Option prospectus for further information.
80
This table describes, in detail, the annual expenses for each of the AZL FusionPortfolios. We show the expenses as a
percentage of an Investment Options average daily net assets. The underlying funds may pay 12b-1 fees to the distributor
of the Contracts for distribution and/or administrative services. The underlying funds do not pay service fees or 12b-1 fees
to the AZL FusionPortfolios, and the AZL FusionPortfolios do not pay service fees or 12b-1 fees. The underlying funds
of the AZL FusionPortfolios may pay service fees to the insurance companies issuing variable contracts, or their affiliates,
for providing customer service and other administrative services to contract purchasers. The amount of such service fees
may vary depending on the underlying fund.
Total annual
operating
Annual Investment Option operating expenses expenses after
before fee waivers or expense reimbursements Acquired Amount of contractual fee
Rule fund fees Total annual contractual fee waivers or
Management 12b-1 Other and operating waivers and expense
Investment Option fees fees* expenses Total expenses(2) expenses reimbursements reimbursements
FUSION PORTFOLIOS
AZL Fusion Balanced Fund(1) .20% % .06% .26% 1.01% 1.27% % 1.27%
AZL Fusion Growth Fund(1) .20 .05 .25 1.07 1.32 1.32
AZL Fusion Moderate Fund(1) .20 .05 .25 1.14 1.39 1.39
* The 12b-1 fees cover certain distribution and shareholder support services provided by the companies selling Contracts. Our principal underwriter,
Allianz Life Financial Services, LLC, will receive 12b-1 fees.
(1) Allianz Investment Management LLC (AZL), the Investment Options investment adviser, and the Investment Option have entered into a written
contract limiting operating expenses (excluding certain fund expenses including, but not limited to, any taxes, interest, brokerage fees or
extraordinary expenses) from exceeding 0.30% through at least April 30, 2009. The operating expenses covered by the expense limitation include
fees deducted from fund assets such as audit fees and payments to outside trustees, but do not include the operating expenses of other investment
companies in which the funds may invest (acquired fund fees and expenses). Acquired fund fees and expenses are incurred indirectly by the
Investment Option(s) through the Investment Options investment in permitted underlying funds. Accordingly, acquired fees and expenses affect
the Investment Options total returns. The Investment Option is authorized to reimburse AZL for fees previously waived and/or for the cost of other
expenses paid by AZL provided that such reimbursement will not cause the Investment Option to exceed the expense limits in effect at the time of
such reimbursement. AZL may request and receive reimbursement of fees waived or limited and other reimbursements made by AZL. The
Investment Options ability to reimburse AZL in this manner only applies to fees paid or reimbursement made by AZL within the three fiscal years
prior to the date of such reimbursement.
(2) Persons with Contract Value allocated to the AZL FusionPortfolios will also indirectly pay the expenses of the underlying funds. The underlying
fund fees and expenses are an estimate. These expenses will vary, depending upon the allocation of assets to individual underlying funds. In
addition, it can be expected that underlying funds may be added or deleted as investments, with a resulting change in expenses. The investment
advisers to the underlying funds or their affiliates may pay service fees to Allianz Life or its affiliates for providing customer service and other
administrative services to Contract purchasers. The amount of such fees may vary by underlying fund. The underlying funds may also pay Rule
12b-1 distribution fees to the distributor of the Contracts. The underlying funds do not pay service fees or 12b-1 fees to the AZL FusionPortfolios,
and the AZL FusionPortfolios do not pay service fees or 12b-1 fees.
81
APPENDIX B CONDENSED FINANCIAL INFORMATION

The consolidated financial statements of Allianz Life Insurance Company of North America and the financial statements
of Allianz Life Variable Account B may be found in the Statement of Additional Information.
Accumulation Unit value (AUV) information corresponding to the highest and lowest combination of charges for the
February 2007 Contract and the Original Contract issued on or after June 22, 2007 are listed in the tables below. You can
find AUV information corresponding to additional combinations of charges in the appendix to the Statement of
Additional Information.
This information should be read in conjunction with the financial statements and related notes of the Separate Account
included in the Statement of Additional Information. The Statement of Additional Information is available without charge
by contacting us at the telephone number or address listed at the back of this prospectus.
M&E
* Key to Benefit Option Charges
Allianz High Five February 2007 Contract or Original Contract issued on or
after June 22, 2007 with the Traditional GMDB........................................................ 1.25%
Allianz High Five February 2007 Contract or Original Contract issued on or
after June 22, 2007 with the Enhanced GMDB ........................................................ 1.45%
The following Investment Option commenced operations under this Contract after December 31, 2007. Therefore, no
AUV information is shown for it: BlackRock Global Allocation V.I. Fund
(Number of Accumulation Units in thousands)
Number of Number of
Accumulation Accumulation
Period or AUV at AUV at Units Period or AUV at AUV at Units
Benefit Year Beginning of End of Outstanding at Benefit Year Beginning of End of Outstanding at
Option * Ended Period Period End of Period Option * Ended Period Period End of Period
Investment Option Investment Option
AZL AIM International Equity Fund AZL Franklin Small Cap Value Fund
1.25% 1.25%
12/31/2007 N/A 20.000 324 12/31/2007 N/A 17.608 385
1.45% 1.45%
12/31/2007 N/A 19.774 110 12/31/2007 N/A 17.445 117
AZL Columbia Technology Fund AZL Fusion Balanced Fund
1.25% 1.25%
12/31/2007 N/A 10.107 188 12/31/2007 N/A 12.170 1016
1.45% 1.45%
12/31/2007 N/A 9.983 68 12/31/2007 N/A 12.105 272
AZL Davis NY Venture Fund AZL Fusion Growth Fund
1.25% 1.25%
12/31/2007 N/A 13.681 534 12/31/2007 N/A 12.865 2356
1.45% 1.45%
12/31/2007 N/A 13.513 181 12/31/2007 N/A 12.796 711
AZL Dreyfus Founders Equity Growth Fund AZL Fusion Moderate Fund
1.25% 1.25%
12/31/2007 N/A 11.633 465 12/31/2007 N/A 12.446 2423
1.45% 1.45%
12/31/2007 N/A 11.491 106 12/31/2007 N/A 12.379 1021
AZL Dreyfus Premier Small Cap Value Fund AZL Jennison 20/20 Focus Fund
1.25% 1.25%
12/31/2007 N/A 12.508 81 12/31/2007 N/A 14.931 417
1.45% 1.45%
12/31/2007 N/A 12.417 34 12/31/2007 N/A 14.851 326
AZL First Trust Target Double Play Fund AZL Jennison Growth Fund
1.25% 1.25%
12/31/2007 N/A 10.624 584 12/31/2007 N/A 13.163 112
1.45% 1.45%
12/31/2007 N/A 10.603 218 12/31/2007 N/A 13.092 31
82
Number of Number of
AZL Legg Mason Growth Fund AZL PIMCO Fundamental IndexPLUS Total Return Fund
1.25% 1.25%
12/31/2007 N/A 13.468 317 12/31/2007 N/A 11.684 27
1.45% 1.45%
12/31/2007 N/A 13.316 203 12/31/2007 N/A 11.645 8
AZL Legg Mason Value Fund AZL S&P 500 Index Fund
1.25% 1.25%
12/31/2007 N/A 11.770 161 12/31/2007 N/A 9.892 313
1.45% 1.45%
12/31/2007 N/A 11.626 67 12/31/2007 N/A 9.879 49
AZL LMP Large Cap Growth Fund AZL Schroder Emerging Markets Equity Fund
1.25% 1.25%
12/31/2007 N/A 11.716 59 12/31/2007 N/A 13.489 447
1.45% 1.45%
12/31/2007 N/A 11.584 12 12/31/2007 N/A 13.444 229
AZL Money Market Fund AZL Schroder International Small Cap Fund
1.25% 1.25%
12/31/2007 N/A 11.258 2421 12/31/2007 N/A 9.252 76
1.45% 1.45%
12/31/2007 N/A 11.081 729 12/31/2007 N/A 9.240 24
AZL NACM International Fund AZL Small Cap Stock Index Fund
1.25% 1.25%
12/31/2007 N/A 9.481 35 12/31/2007 N/A 9.339 148
1.45% 1.45%
12/31/2007 N/A 9.468 6 12/31/2007 N/A 9.326 29
AZL Neuberger Berman Regency Fund AZL TargetPLUS Balanced Fund
1.25% 1.25%
12/31/2007 N/A 10.345 175 12/31/2007 N/A 10.127 200
1.45% 1.45%
12/31/2007 N/A 10.310 60 12/31/2007 N/A 10.113 98
AZL OCC Opportunity Fund AZL TargetPLUS Equity Fund
1.25% 1.25%
12/31/2007 N/A 16.814 102 12/31/2007 N/A 10.540 522
1.45% 1.45%
12/31/2007 N/A 16.624 60 12/31/2007 N/A 10.519 212
AZL OCC Value Fund AZL TargetPLUS Growth Fund
1.25% 1.25%
12/31/2007 N/A 14.985 152 12/31/2007 N/A 9.949 232
1.45% 1.45%
12/31/2007 N/A 14.802 62 12/31/2007 N/A 9.936 95
AZL Oppenheimer Global Fund AZL TargetPLUS Moderate Fund
1.25% 1.25%
12/31/2007 N/A 15.320 209 12/31/2007 N/A 10.090 191
1.45% 1.45%
12/31/2007 N/A 15.208 134 12/31/2007 N/A 10.076 108
AZL Oppenheimer International Growth Fund AZL Turner Quantitative Small Cap Growth Fund
1.25% 1.25%
12/31/2007 N/A 20.694 335 12/31/2007 N/A 12.823 56
1.45% 1.45%
12/31/2007 N/A 20.440 116 12/31/2007 N/A 12.755 14
AZL Oppenheimer Main Street Fund AZL Van Kampen Comstock Fund
1.25% 1.25%
12/31/2007 N/A 13.011 154 12/31/2007 N/A 12.510 318
1.45% 1.45%
12/31/2007 N/A 12.916 117 12/31/2007 N/A 12.344 265
83
Number of Number of
AZL Van Kampen Equity and Income Fund Franklin Growth and Income Securities Fund
1.25% 1.25%
12/31/2007 N/A 12.903 340 12/31/2007 N/A 37.511 25
1.45% 1.45%
12/31/2007 N/A 12.808 295 12/31/2007 N/A 36.116 13
AZL Van Kampen Global Franchise Fund Franklin High Income Securities Fund
1.25% 1.25%
12/31/2007 N/A 19.496 442 12/31/2007 N/A 26.119 123
1.45% 1.45%
12/31/2007 N/A 19.314 290 12/31/2007 N/A 25.147 84
AZL Van Kampen Global Real Estate Fund Franklin Income Securities Fund
1.25% 1.25%
12/31/2007 N/A 10.879 386 12/31/2007 N/A 49.888 840
1.45% 1.45%
12/31/2007 N/A 10.843 139 12/31/2007 N/A 48.033 288
AZL Van Kampen Growth and Income Fund Franklin Large Cap Growth Securities Fund
1.25% 1.25%
12/31/2007 N/A 14.435 218 12/31/2007 N/A 21.457 41
1.45% 1.45%
12/31/2007 N/A 14.244 271 12/31/2007 N/A 20.961 12
AZL Van Kampen Mid Cap Growth Fund Franklin Rising Dividends Securities Fund
1.25% 1.25%
12/31/2007 N/A 16.356 464 12/31/2007 N/A 37.958 13
1.45% 1.45%
12/31/2007 N/A 16.139 269 12/31/2007 N/A 36.767 47
Davis VA Financial Portfolio Franklin Small Cap Value Securities Fund
1.25% 1.25%
12/31/2007 N/A 16.021 36 12/31/2007 N/A N/A N/A
1.45% 1.45%
12/31/2007 N/A 15.770 41 12/31/2007 N/A N/A N/A
Davis VA Value Portfolio Franklin Small-Mid Cap Growth Securities Fund
1.25% 1.25%
12/31/2007 N/A N/A N/A 12/31/2007 N/A 25.771 2
1.45% 1.45%
12/31/2007 N/A N/A N/A 12/31/2007 N/A 25.151 2
Dreyfus IP Small Cap Stock Index Portfolio Franklin Templeton VIP Founding Funds Allocation Fund
1.25% 1.25%
12/31/2007 N/A 14.634 90 12/31/2007 N/A 9.253 214
1.45% 1.45%
12/31/2007 N/A 14.469 17 12/31/2007 N/A 9.244 474
Dreyfus Stock Index Fund, Inc. Franklin U.S. Government Fund
1.25% 1.25%
12/31/2007 N/A 13.694 115 12/31/2007 N/A 26.955 137
1.45% 1.45%
12/31/2007 N/A 13.540 33 12/31/2007 N/A 25.960 75
Franklin Global Communications Securities Fund Franklin Zero Coupon Fund 2010
1.25% 1.25%
12/31/2007 N/A 32.260 65 12/31/2007 N/A 41.122 25
1.45% 1.45%
12/31/2007 N/A 31.060 64 12/31/2007 N/A 39.603 10
Franklin Global Real Estate Securities Fund Jennison 20/20 Focus Portfolio
1.25% 1.25%
12/31/2007 N/A 55.094 2 12/31/2007 N/A 17.370 5
1.45% 1.45%
12/31/2007 N/A 53.045 2 12/31/2007 N/A 17.174 2
84
Number of Number of
Mutual Discovery Securities Fund PIMCO VIT High Yield Portfolio
1.25% 1.25%
12/31/2007 N/A 30.333 680 12/31/2007 N/A 14.468 107
1.45% 1.45%
12/31/2007 N/A 29.664 234 12/31/2007 N/A 14.241 38
Mutual Shares Securities Fund PIMCO VIT Real Return Portfolio
1.25% 1.25%
12/31/2007 N/A 24.555 1600 12/31/2007 N/A 12.411 245
1.45% 1.45%
12/31/2007 N/A 24.013 537 12/31/2007 N/A 12.295 63
OpCap Mid Cap Portfolio PIMCO VIT StocksPLUS Growth and Income Portfolio
1.25% 1.25%
12/31/2007 N/A 10.610 189 12/31/2007 N/A 11.264 0
1.45% 1.45%
12/31/2007 N/A 10.574 46 12/31/2007 N/A 11.086 0
Oppenheimer Global Securities Fund/VA PIMCO VIT Total Return Portfolio
1.25% 1.25%
12/31/2007 N/A N/A N/A 12/31/2007 N/A 15.165 472
1.45% 1.45%
12/31/2007 N/A N/A N/A 12/31/2007 N/A 14.926 198
Oppenheimer High Income Fund/VA Seligman Smaller-Cap Value Portfolio
1.25% 1.25%
12/31/2007 N/A 13.145 2 12/31/2007 N/A N/A N/A
1.45% 1.45%
12/31/2007 N/A 12.939 0 12/31/2007 N/A N/A N/A
Oppenheimer Main Street Fund/VA SP International Growth Portfolio
1.25% 1.25%
12/31/2007 N/A N/A N/A 12/31/2007 N/A 10.295 6
1.45% 1.45%
12/31/2007 N/A N/A N/A 12/31/2007 N/A 10.151 0
PIMCO VIT All Asset Portfolio SP Strategic Partners Focused Growth Portfolio
1.25% 1.25%
12/31/2007 N/A 13.024 110 12/31/2007 N/A 8.207 0
1.45% 1.45%
12/31/2007 N/A 12.929 17 12/31/2007 N/A 8.092 0
PIMCO VIT CommodityRealReturn Strategy Portfolio Templeton Developing Markets Securities Fund
1.25% 1.25%
12/31/2007 N/A 12.867 228 12/31/2007 N/A 28.802 11
1.45% 1.45%
12/31/2007 N/A 12.799 30 12/31/2007 N/A 28.018 3
PIMCO VIT Emerging Markets Bond Portfolio Templeton Foreign Securities Fund
1.25% 1.25%
12/31/2007 N/A 12.336 91 12/31/2007 N/A 32.972 45
1.45% 1.45%
12/31/2007 N/A 12.270 24 12/31/2007 N/A 31.937 16
PIMCO VIT Global Bond Portfolio (Unhedged) Templeton Global Income Securities Fund
1.25% 1.25%
12/31/2007 N/A 10.482 145 12/31/2007 N/A 33.276 110
1.45% 1.45%
12/31/2007 N/A 10.426 38 12/31/2007 N/A 32.082 34
Templeton Growth Securities Fund
1.25%
12/31/2007 N/A 30.157 915
1.45%
12/31/2007 N/A 29.335 301
85
APPENDIX C GMIB VALUE CALCULATION EXAMPLES

You purchase a February 2007 Contract with the Living Guarantees and make an initial Purchase Payment of
$100,000. All Owners are age 55 or younger on the Issue Date. You make no additional Purchase Payments.
The MAV on the fifth Contract Anniversary is $120,000.
The MAV on the seventh Contract Anniversary is $150,000.
You take a partial withdrawal of $20,000 (including the withdrawal charge) in the eighth Contract Year when the
Contract Value on the date of (but before) the partial withdrawal is $160,000. The withdrawal charge period on the
initial Purchase Payment has expired, so there is no withdrawal charge on this partial withdrawal. There is no MVA at
the time of the partial withdrawal. You take no other partial withdrawals.
The Contract Value on the eighth Contract Anniversary is $110,000.
The MAV on the tenth Contract Anniversary is $180,000.
The MAV on the fifteenth Contract Anniversary is $230,000.
The GMIB adjusted partial withdrawal is equal to:
The amount of the partial withdrawal subject to the partial withdrawal privilege
(12% of total Purchase Payments received) = 0.12 x $100,000 = ...................................................................................$12,000
Plus
The remaining amount of the partial withdrawal (including any withdrawal charge) ..................................................................8,000
Multiplied by the greater of a) or b):
a) one, or
b) the ratio of the GMIB value divided by the Contract Value on the date of (but before) the partial withdrawal =
$150,0000/$160,0000 = 0.94.....................................................................................................................................x 1
$ 8,000
Total GMIB adjusted partial withdrawal ..................................................................................................................................$20,000
The GMIB value on the eighth Contract Anniversary is equal to:
The MAV on the seventh Contract Anniversary ...................................................................................................................$150,000
Reduced by the GMIB adjusted partial withdrawal in the eighth Contract Year ................................................................... - 20,000
$130,000
Below are examples of guaranteed monthly GMIB Payments. For Annuity Option 3, assume the Annuitant is male and
the joint Annuitant is female. Both are age 55 on the Issue Date.
GMIB Payments under
Option 3 Joint
Option 2 Life & Last
Your Income Date is within 30 days Option 1 Life Annuity w/ 10 Survivor
after Contract Anniversary GMIB Value Annuity years Annuity
5 $120,000 $ 540.00 $ 531.60 $ 440.40
8 $130,000 $ 631.80 $ 617.50 $ 505.70
10 $180,000 $ 925.20 $ 900.00 $ 730.80
15 $230,000 $1,386.90 $1,311.00 $1,055.70
86
APPENDIX D GAV CALCULATION EXAMPLE

You purchase a February 2007 Contract with Living Guarantees. You make only one initial Purchase Payment of
$100,000. You make no additional Purchase Payments, therefore, the calculations of the GAV that follows will not
include reference to additional Purchase Payments.
The Contract Value on the first Contract Anniversary is $120,000; on the second Contract Anniversary it is $135,000;
on the third Contract Anniversary it is $150,000; and on the fourth Contract Anniversary it is $135,000.
You take a partial withdrawal of $20,000 (including the withdrawal charge) in the fourth Contract Year when the
Contract Value on the date of (but before) the partial withdrawal is $160,000. There is no MVA at the time of the
partial withdrawal. You take no other partial withdrawals.
The initial GAV .................................................................................................................................................................... $100,000
The GAV on the first Contract Anniversary equals the greater of A or B:
(A) the initial GAV = $100,000
(B) the Contract Value on the first Contract Anniversary = $120,000
The GAV on the first Contract Anniversary.......................................................................................................................... $120,000
The GAV on the second Contract Anniversary equals the greater of C or D:
(C) the GAV from the first Contract Anniversary = $120,000
(D) the Contract Value on the second Contract Anniversary = $135,000
The GAV on the second Contract Anniversary .................................................................................................................... $135,000
The GAV on the third Contract Anniversary equals the greater of C or D:
(C) = the GAV from the second Contract Anniversary = $135,000
(D) the Contract Value on the third Contract Anniversary = $150,000
The GAV on the third Contract Anniversary......................................................................................................................... $150,000
Calculating the GAV adjusted partial withdrawal taken in the fourth Contract Year:
The amount of the partial withdrawal subject to the partial withdrawal privilege
(12% of total Purchase Payments) = 0.12 x $100,000 =................................................................. $12,000
Plus
The remaining amount of the partial withdrawal (including any withdrawal charge)..............................+ (8,000
Multiplied by the greater of a) or b) where:
(a) one, or
(b) the GAV divided by the Contract Value on the date of (but before) the partial withdrawal =
$150,0000/$160,0000 = 0.94 ..................................................................................................... x 1)
Total GAV adjusted partial withdrawal................................................................................................... $20,000
The GAV on the fourth Contract Anniversary equals the greater of C or D:
(C) the GAV from the third Contract Anniversary, minus the GAV adjusted partial withdrawal taken in the fourth
Contract Year = $150,000 $20,000 = $130,000
(D) the Contract Value on the fourth Contract Anniversary = $135,000
The GAV on the fourth Contract Anniversary....................................................................................................................... $135,000
87
Applying the GAV Benefit:

On the fifth Contract Anniversary, the Contract Value is $105,000. The initial GAV is $100,000. We subtract all the
GAV adjusted partial withdrawals taken in the last five years ($20,000), for a total of $80,000. The fifth anniversary
Contract Value is greater than the initial GAV adjusted for the partial withdrawal taken in the fourth year, so there is
no True Up on the fifth Contract Anniversary.
On the sixth Contract Anniversary, the Contract Value is $108,000. The GAV established five years ago on the first
Contract Anniversary is $120,000. We subtract all the GAV adjusted partial withdrawals taken in the last five years
($20,000), for a total of $100,000. The sixth anniversary Contract Value is greater than the GAV from the first
Contract Anniversary adjusted for the partial withdrawal taken in the fourth year, so there is no True Up on the sixth
Contract Anniversary.
On the seventh Contract Anniversary, the Contract Value is $110,000. The GAV established five years ago on the
second Contract Anniversary is $135,000. We subtract all the GAV adjusted partial withdrawals taken in the last five
years ($20,000), for a total of $115,000. The seventh Anniversary Contract Value is less than the GAV from the
second Contract Anniversary adjusted for the partial withdrawal taken in the fourth year, so we will True Up the
Contract Value to equal this amount by applying $5,000 to the Investment Options on the seventh Contract
Anniversary.
Application of the GAV Benefit in tabular form:
Contract Value
guaranteed under
the GAV Benefit Amount of GAV
(does not apply True Up (does not
until the 5th apply until the 5th Contract Value
Contract Contract after GAV
Contract Value GAV Anniversary) Anniversary) True Up
Initial $100,000 $100,000
1st Contract Anniversary $120,000 $120,000
2nd Contract Anniversary $135,000 $135,000
3rd Contract Anniversary $150,000 $150,000
4th Contract Anniversary $135,000 $135,000
5th Contract Anniversary $105,000 $135,000 $ 80,000 None $105,000
7th Contract Anniversary $110,000 $135,000 $115,000 $5,000 $115,000
88
APPENDIX E DEATH BENEFIT CALCULATION EXAMPLES

You purchase a February 2007 Contract with an initial Purchase Payment of $100,000. You choose not to include the
Living Guarantees and you allocate your entire Purchase Payment to the Investment Options. You are the only Owner
and are age 69 or younger on the Issue Date. You make no additional Purchase Payments.
You take a partial withdrawal of $20,000 in the tenth Contract Year when the Contract Value on the date of (but
before the partial withdrawal) is $160,000. The withdrawal charge period on the initial Purchase Payment has expired
so there is no withdrawal charge on this partial withdrawal.
The Contract Value on the tenth Contract Anniversary is $140,000.
NOTE: We calculate the MAV only for Contracts with the Enhanced GMDB. The M&E charges are higher for Contracts
with the Enhanced GMDB than for Contracts with the Traditional GMDB. If the differences in these charges were
reflected in these examples, the Contract Values would be lower for Contracts with the Enhanced GMDB than for
Contracts with the Traditional GMDB.
If you elected the Traditional GMDB:
We calculate the death benefit on the tenth Contract Anniversary as the greater of:
1) Contract Value .................................................................................................................................................................... $140,000
2) The Traditional GMDB value:
Total Purchase Payments received ..................................................................................................................................... $100,000
Reduced by the GMDB adjusted partial withdrawal ...................................................................................................... - 20,000
$ 80,000
The GMDB adjusted partial withdrawal for (2) above is equal to:
The amount of the partial withdrawal .......................................................................................................... $ 20,000
a) is one, and
b) is the ratio of the death benefit divided by the Contract Value
on the day of (but before) the partial withdrawal = $160,0000/$160,0000 = 1 ................................... x 1
Total GMDB adjusted partial withdrawal..................................................................................................... $ 20,000
Therefore, the death benefit that would be payable as of the tenth Contract Anniversary is the $140,000 Contract Value.
If you elected the Enhanced GMDB:
The following details how we calculate the MAV on the first nine Contract Anniversaries:
Contract Value MAV
1st Contract Anniversary $110,000 $110,000
2nd Contract Anniversary $118,000 $118,000
3rd Contract Anniversary $116,000 $118,000
On the Issue Date, the MAV is equal to total Purchase Payments ($100,000).
On the first Contract Anniversary the Contract Value is $110,000, which is greater than the MAV from the immediately
preceding Business Day ($100,000), so the MAV increases to $110,000.
On the second Contract Anniversary the Contract Value is $118,000, which is greater than the MAV from the
immediately preceding Business Day ($110,000), so the MAV increases to $118,000.
On the third Contract Anniversary the Contract Value is $116,000, which is less than the MAV from the immediately
preceding Business Day ($118,000), so the MAV does not change.
On the fourth Contract Anniversary the Contract Value is $122,000, which is greater than the MAV from the
immediately preceding Business Day ($118,000), so the MAV increases to $122,000.
89
On the fifth Contract Anniversary the Contract Value is $120,000, which is less than the MAV from the immediately
preceding Business Day ($122,000), so the MAV does not change.
On the sixth, seventh, eighth and ninth Contract Anniversaries the Contract Value is greater than the MAV from the
immediately preceding Business Day, so the MAV increases to equal the Contract Value.
We calculate the death benefit on the tenth Contract Anniversary as the greater of:
1) Contract Value ....................................................................................................................................................................$140,000
2) The Traditional GMDB value:
Total Purchase Payments received......................................................................................................................................$100,000
Reduced by the GMDB adjusted partial withdrawal...................................................................................................... - 20,250
$ 79,750
3) The Enhanced GMDB value:
The MAV on the ninth Contract Anniversary ........................................................................................................................$162,000
Reduced by the GMDB adjusted partial withdrawal...................................................................................................... - 20,250
$141,750
The GMDB adjusted partial withdrawal for (2) and (3) above is equal to:
The amount of the partial withdrawal...........................................................................................................$ 20,000
a) is one, and
b) is the ratio of the death benefit divided by the Contract Value
on the date of (but before) the partial withdrawal = $162,0000/$160,0000 = 1.0125 .....................x 1.0125
Total GMDB adjusted partial withdrawal .....................................................................................................$ 20,250
Therefore, the death benefit that would be payable as of the tenth Contract Anniversary is the $141,750 MAV.
90
APPENDIX F THE ORIGINAL CONTRACT

The Original Contract is no longer offered for sale in any state except Washington. However, Owners of the Original
Contract can still make additional Purchase Payments. The Original Contract has different product features and expenses
than the February 2007 Contract that is currently offered for sale in all other states. The May 2005 Contract is no longer
offered for sale. Information on the May 2005 Contract is included in the Statement of Additional Information.
The Original Contract product features and expenses may include, but are not limited to the following.
No restrictions on allocations of Purchase Payments to the FPAs.
Annuity Option 6 was available for fixed and/or variable Annuity Payments.
If an Owner requests variable Annuity Payments under Annuity Option 2, 4, or 6 they can also take money out of the
Contract during the Annuity Phase (take a liquidation).
Liquidations during the Annuity Phase under Annuity Option 2 or 4 were subject to a commutation fee.
Liquidations under Annuity Option 6 were subject to a withdrawal charge.
There was no minimum or maximum on MVAs for partial transfers or partial withdrawals from the FPAs and the FPA
guaranteed minimum value applied only upon a complete transfer or full withdrawal from the FPAs.
The formula for the FPA guaranteed minimum value was different (please see the discussion that follows).
The GWB was immediately available for exercise.
The GWB terminated upon the earliest of Contract termination or the Income Date.
The formula for all GMIB adjusted partial withdrawals was the same as the formula for GMIB adjusted partial
withdrawals taken on or after the second Contract Anniversary for the Contract we currently offer (please see section
2, The Annuity Phase GMIB Adjusted Partial Withdrawals).
The formula for GAV adjusted partial withdrawals was the same as the formula for GAV adjusted partial withdrawals
taken on or after the second Contract Anniversary for the Contract we currently offer (please see section 6,
Guaranteed Account Value (GAV) Benefit Calculating the GAV).
The formula for GWB adjusted partial withdrawals was the same as the formula for GWB adjusted partial
withdrawals taken on or after the second Contract Anniversary for the Contract we currently offer (please see section
9, Access to Your Money Guaranteed Withdrawal Benefit (GWB)).
The formula for GMDB adjusted partial withdrawals was different (please see the discussion that follows).
The mortality and expense risk (M&E) charge for the Original Contract issued before June 22, 2007 is greater than the
M&E charge for the Original Contract issued on or after June 22, 2007 and for the February 2007 Contract.
Liquidations under Annuity Option 2. Life Annuity with Monthly Payments Over 5, 10, 15 or 20 Years
Guaranteed. For the Original Contract, if you request variable Traditional Annuity Payments under this Annuity Option
you may be able to take a liquidation during the Annuity Phase. You may request a liquidation while the Annuitant is
alive and the number of variable Traditional Annuity Payments made is less than the guaranteed number of payments
selected. We will allow you to take a partial liquidation at least once each Contract Year starting five years after the
Income Date. The liquidation value available to you is the present value of the remaining guaranteed number of variable
Traditional Annuity Payments, based on the Annuity Payments current value, to the end of the guaranteed period, using
the selected AIR as the interest rate for the present value calculation. The total of all partial liquidations, measured as the
sum of the percentages of the total liquidation value at the time of each partial liquidation, cannot exceed 75%. We will
subtract a commutation fee from the amount you take out before we pay you the proceeds. We will process partial
liquidations within seven days after your written request is received in good order at our Service Center. After a partial
liquidation, we will reduce the subsequent monthly Annuity Payments during the remaining guaranteed period by the
percentage of liquidation value withdrawn, including the commutation fee. After we have made the guaranteed number of
variable Traditional Annuity Payments, the number of Annuity Units used in calculating the monthly variable Traditional
Annuity Payments will be restored to their original value as if no liquidations had taken place.
Liquidations under Option 4. Joint and Last Survivor Annuity with Monthly Payments Over 5, 10, 15 or 20 Years
Guaranteed. For the Original Contract, if you request variable Traditional Annuity Payments under this Annuity Option,
you may be able to take a liquidation during the Annuity Phase. You may request a liquidation while at least one
Annuitant is alive and the number of variable Annuity Payments made is less than the guaranteed number of payments
91
elected. We will allow you to take a partial liquidation at least once each Contract Year starting five years after the
Income Date. The liquidation value available to you is the present value of the remaining guaranteed number of variable
Traditional Annuity Payments, based on the Annuity Payments current value, to the end of the guaranteed period, using
the selected AIR as the interest rate for the present value calculation. The total of all partial liquidations, measured as the
sum of the percentages of the total liquidation value at the time of each partial liquidation, cannot exceed 75%. We will
subtract a commutation fee from the amount you take out before we pay you the proceeds. We will process partial
liquidations within seven days after your written request is received in good order at our Service Center. After a partial
liquidation, we will reduce the subsequent monthly variable Traditional Annuity Payments during the remaining
guaranteed period by the percentage of liquidation value withdrawn, including the commutation fee. After we have made
the guaranteed number of variable Traditional Annuity Payments, the number of Annuity Units used in calculating the
monthly variable Traditional Annuity Payments will be restored to their original value as if no liquidations had taken
place.
Liquidations under Annuity Option 6. Specified Period Certain Annuity. For the Original Contract, if you request
variable Traditional Annuity Payments under this Annuity Option, you may be able to take a liquidation during the
Annuity Phase. You may request a liquidation at least once each Contract Year of up to 100% of the liquidation value in
the Contract. The liquidation value is equal to the present value of the remaining variable Traditional Annuity Payments
based on the Payments current value, to the end of the period certain, using the selected AIR as the interest rate for the
present value calculation. We will subtract a withdrawal charge from the amount you take out before we pay you the
proceeds. We will process the liquidation within seven days after your written request is received in good order at our
Service Center, reduced as set forth in the Contract. After a partial liquidation, we will reduce the subsequent monthly
variable Traditional Annuity Payments during the remaining specified period certain by the percentage of the liquidation
value withdrawn, including the withdrawal charge.
The FPA guaranteed minimum value for the Original Contract is equal to:
The greater of (a) or (b) where:
(a) = all allocations to the FPAs less partial withdrawals (including any withdrawal charges), Partial Annuitizations
and transfers from the FPAs.
(b) = 87.5% of all allocations to the FPAs, less all partial withdrawals (including any withdrawal charges), Partial
Annuitizations, and transfers from the FPAs, accumulated at the FPA guaranteed minimum value interest rate
specified in the Contract (which is 3%).
Plus
upon a full withdrawal, the amount of the withdrawal charge that we assign to the FPAs. We base this amount
on the percentage of Contract Value in the FPAs (for example, if 25% of the Contract Value is in the FPAs,
then upon a full withdrawal we would assign 25% of any withdrawal charge to the FPAs).
For the Original Contract, in no event will the Contract Value in a FPA after application of the MVA be less than the FPA
guaranteed minimum value upon complete transfer or full withdrawal.
All partial withdrawals, Partial Annuitizations and transfers in this calculation of the FPA guaranteed minimum value for
the Original Contract does not reflect any MVA.
Commutation fee/withdrawal charge for liquidations on the Original Contract: If you request variable Traditional
Annuity Payments under Annuity Option 2 or 4 you may be able to take a liquidation during the Annuity Phase.
Liquidations are first allowed five years after the Income Date. If you take a liquidation under Annuity Option 2 or 4 we
will assess a commutation fee against the amount you withdraw.
Commutation fee during the Annuity Phase the Original Contract only
(as a percentage of amount liquidated under variable traditional Annuity Option 2 or 4)
Number of Complete
Years Since Income Date Charge
5 4%
6 3%
7 2%
8 years or more 1%
92
If you request variable Traditional Annuity Payments under Annuity Option 6 you may be able to take a liquidation
during the Annuity Phase. If you take a liquidation under Annuity Option 6 we may assess a withdrawal charge against
the amount you withdraw.
Withdrawal Charge During the Annuity Phase the Original Contract only
(as a percentage of amount liquidated under variable traditional Annuity Option 6)
Number of Complete
Years Since Receipt of
0 8%
1 8%
2 7%
3 6%
4 5%
5 4%
6 3%
7 years or more 0%
In some states, the commutation fee or withdrawal charge for liquidations during the Annuity Phase is replaced with a
charge equal to the difference of the present value of the remaining variable Traditional Annuity Payments in the
guaranteed period/specified period certain at AIR and AIR plus 1%.
We assess the commutation fee and/or the withdrawal charge to cover lost revenue as well as internal costs incurred in
conjunction with the liquidation.
Separate Account Annual Expenses (Includes the mortality and expense risk (M&E) charges.)
M&E Charges
before June 22, 2007
Enhanced GMDB 1.60%
The GMDB adjusted partial withdrawal formula for the Original Contract is equal to: FPW + (RPW x GMDB)
FPW = The amount of the partial withdrawal (before any MVA) that together with any other previous partial
withdrawals taken during the Contract Year does not exceed 12% of total Purchase Payments (the partial
withdrawal privilege). However, if you take a traditional Partial Annuitization, the entire amount of Contract
Value (before any MVA) applied to the traditional Partial Annuitization will be included in the RPW portion of
this formula.
RPW = The remaining amount of the partial withdrawal, including any applicable withdrawal charge, but the
application of any MVA.
GMDB = The greater of one, or (a) divided by (b) where:
(a) = the death benefit on the day of (but before) the partial withdrawal.
(b) = the Contract Value on the day of (but before) the partial withdrawal, adjusted for any applicable MVA.
If you take a GMIB Partial Annuitization, the GMDB adjusted partial withdrawal formula for the Original Contract is the
same as it is for the February 2007 Contract currently offered for sale in most states.
93
APPENDIX G WITHDRAWAL CHARGE EXAMPLES

All of the following examples assume you purchase a February 2007 Contract with an initial Purchase Payment of
$100,000, you select the Living Guarantees, and you make no additional Purchase Payments. The partial withdrawal
privilege for each Contract Year is 12% of your total Purchase Payments, less the total amount previously withdrawn
under the partial withdrawal privilege in the same Contract Year, and before any MVA. Any unused partial withdrawal
privilege in one Contract Year does not carry over to the next Contract Year. This means at the beginning of each
Contract Year, there would be at least $12,000 available under the partial withdrawal privilege. The maximum amount
available under the GWB is the lesser of the partial withdrawal privilege ($12,000) or the remaining GWB value (total
Purchase Payments less GWB adjusted partial withdrawals). There is no MVA to any of the withdrawals in the following
examples.
Full withdrawal when the Contract Value has declined due to a loss in your selected Investment Options:
You take a full withdrawal in the third Contract Year when the Contract Value is $90,000 and the withdrawal charge
is 7%. You have taken no other withdrawals from the Contract.
There are no Purchase Payments that are beyond the withdrawal charge period and the partial withdrawal privilege
does not apply upon a full withdrawal. Because this is a full withdrawal, we assess the withdrawal charge against the
entire Withdrawal Charge Basis.
We calculate the withdrawal charge as follows:
The Withdrawal Charge Basis is total Purchase Payments, less any Purchase Payments withdrawn (excluding any
penalty-free withdrawals), less any withdrawal charges = $100,000 $0 $0 = ................................................ $100,000
Multiplied by the withdrawal charge........................................................................................................................ x 7%
.................................................................................................................................................................. $ 7,000
Therefore, we would withdraw $90,000 from the Contract and pay you $83,000 ($90,000 less the $7,000 withdrawal
charge). The full withdrawal will reduce the total amount available under the GWB to zero.
Partial withdrawal under the partial withdrawal privilege followed by a full withdrawal:
You take a partial withdrawal of $9,000 in the third Contract Year. The total amount available under the partial
withdrawal privilege at this time is $12,000. The $9,000 withdrawn is not subject to a withdrawal charge and will not
reduce the Withdrawal Charge Basis. The partial withdrawal will reduce the total amount available under the GWB by
$9,000.
You take a full withdrawal in the fourth Contract Year when the Contract Value is $90,000 and the withdrawal charge
is 6%. At this time there are no Purchase Payments that are beyond the withdrawal charge period. Because this is a
full withdrawal, the partial withdrawal privilege does not apply and we will assess the withdrawal charge against the
entire Withdrawal Charge Basis.
We calculate the withdrawal charge for the full withdrawal as follows:
penalty-free withdrawals), less any withdrawal charges = $100,000 $0 $0 = ................................................ $100,000
Multiplied by the withdrawal charge........................................................................................................................ x 6%
.................................................................................................................................................................. $ 6,000
Therefore, upon the full withdrawal, we would withdraw $90,000 from the Contract and pay you $84,000 ($90,000 less
the $6,000 withdrawal charge). In this example, your total distributions from the Contract after deducting the withdrawal
charges are $93,000. The full withdrawal will reduce the total amount available under the GWB to zero.
94
Partial withdrawal in excess of the partial withdrawal privilege followed by a full withdrawal:
You take a partial withdrawal of $15,000 in the third Contract Year when the withdrawal charge is 7%. The total
amount available under the partial withdrawal privilege at this time is $12,000, so $3,000 of the withdrawal is subject
to a withdrawal charge and will reduce the Withdrawal Charge Basis.
We calculate the withdrawal charge for the partial withdrawal as follows:
The amount you will receive that is subject to a withdrawal charge........................................................................... $3,000
Divided by (1 minus the withdrawal charge percentage) ............................................................................................ 0.93
Total amount withdrawn............................................................................................................................................. $3,226
Total withdrawal charge (amount withdrawn minus the amount requested) = $3,226 - $3,000 =.............................. $ 226
Therefore, we would withdraw $15,226 from the Contract and pay you $15,000. The partial withdrawal will reduce the
GWB by a minimum of $15,226. The reduction will be greater if the Contract Value on the day of (but before) the partial
withdrawal is less than $100,000.
Continuing the example, assume you take a full withdrawal in the fourth Contract Year when the Contract Value is
$90,000 and the withdrawal charge is 6%. At this time there are no Purchase Payments that are beyond the withdrawal
charge period. Because this is a full withdrawal, the partial withdrawal privilege does not apply and we will assess the
withdrawal charge against the entire Withdrawal Charge Basis.
We calculate the withdrawal charge for the full withdrawal as follows:
penalty-free withdrawals), less any withdrawal charges = $100,000 $3,000 $226 = ........................................ $96,774
Multiplied by the withdrawal charge ......................................................................................................................... x 6%
.................................................................................................................................................................... $ 5,806
Therefore, upon the full withdrawal, we would withdraw $90,000 from the Contract and pay you $84,194 ($90,000 less
the $5,806 withdrawal charge). In this example, your total distributions from the Contract after deducting the withdrawal
charges are $99,194. The full withdrawal will reduce the total amount available under the GWB to zero.
A series of partial withdrawals under the partial withdrawal privilege followed by a full withdrawal:
You take the maximum amount available under the partial withdrawal privilege each year in the third, fourth, and fifth
Contract Years (total distributions = $36,000). The $36,000 withdrawn is not subject to a withdrawal charge and will
not reduce the Withdrawal Charge Basis. These partial withdrawals are guaranteed by the GWB, and will reduce the
GWB by $36,000. The total amount available under the GWB after these partial withdrawals is equal to
$100,000 $36,000 = $64,000.
In the sixth Contract Year, the Contract Value is $11,000 and the maximum amount available under the GWB is
$12,000. If you withdraw $12,000 under the GWB in the sixth Contract Year, your Contract Value would drop to
zero, but you could continue to take $12,000 each year for the next four years and then make a final withdrawal of
$4,000 in the eleventh Contract Year without incurring a withdrawal charge.
95
FOR SERVICE OR MORE INFORMATION

In order to help you understand how your Contract Values vary over time and under different sets of assumptions, we will
provide you with certain personalized illustrations upon request and free of charge. You can request illustrations by
contacting your registered representative. Illustrations demonstrate how your Contract Value, cash surrender value, death
benefits, and (if applicable) the GMIB value of a Contract change based on the investment experience of the Investment
Options or the hypothetical rate of return. The illustrations are hypothetical and may not be used to project or predict
investment results.
You can review and copy information about us, the Separate Account, the prospectus and the SAI at the SECs Public
Reference Room in Washington, D.C. You may obtain information about the operation of the Public Reference Room by
calling (202) 551-8090.
The SEC also maintains a website (http://www.sec.gov). The prospectus, the SAI and other information about the
Contract are available on the EDGAR database on the SECs website. If you do not have access to the website you can
get copies of information from the website upon payment of a duplication fee by writing to:
Public Reference Section of the Commission
100 F Street, NE
Washington, DC 20549
You can contact us at:
5701 Golden Hills Drive
Minneapolis, MN 55416
(800) 624-0197
If you need service (such as changes in Contract information, inquiry into Contract Values, to request a withdrawal, etc.),
please contact our Service Center:
Allianz Service Center
P.O. Box 1122
Southeastern, PA 19398-1122
(800) 624-0197
96
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Allianz Service Center
Policy L40432
PO Box 1122
(R-5/2008)
Southeastern, PA 19398-1122

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Allianz High Five Variable Annuity Prospectus

Allianz Life Insurance Company of North America

Allianz High Five

May 1, 2008 Prospectus

THE ALLIANZ HIGH FIVETM VARIABLE ANNUITY CONTRACT

INVESTMENT OPTIONS AVAILABLE UNDER THE CONTRACT

The following is a list of common abbreviations used in this prospectus:

Transfer Fee(5) ............................................................................... $25

During the Annuity Phase:

A NNUA L O PERA TING EXPEN SES OF TH E IN VESTMENT O PT ION S

1. THE VARIABLE ANNUITY CONTRACT

The Contract will terminate when:

2. THE ANNUITY PHASE

If you take a Partial Annuitization, you cannot do any of the following.

Transfer amounts from one Annuity Payment stream to another.

TAXATIO N OF GMIB PAYMENT S

Calculating the MAV

We determine your voting interest in an Investment Option as follows.

5. OUR GENERAL ACCOUNT

The FPA guaranteed minimum value is equal to:

6. GUARANTEED ACCOUNT VALUE (GAV) BENEFIT

9. ACCESS TO YOUR MONEY

GWB Adjusted Partial Withdrawal Example

11. DEATH BENEFIT

Maximum Anniversary Value (MAV)

UPON THE DEATH OF A JOINT OWNER

12. OTHER INFORMATION

14. TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION (SAI)

15. PRIVACY AND SECURITY STATEMENT

APPENDIX A ANNUAL OPERATING EXPENSES FOR EACH INVESTMENT OPTION

APPENDIX B CONDENSED FINANCIAL INFORMATION

APPENDIX C GMIB VALUE CALCULATION EXAMPLES

APPENDIX D GAV CALCULATION EXAMPLE

Applying the GAV Benefit:

APPENDIX E DEATH BENEFIT CALCULATION EXAMPLES

APPENDIX F THE ORIGINAL CONTRACT

APPENDIX G WITHDRAWAL CHARGE EXAMPLES

FOR SERVICE OR MORE INFORMATION

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