ASSET ALLOCATION RIDER
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This rider forms a part of the Base Contract to which it is attached and is
effective as of the Rider Effective Date. If you selected the PRIME Plus Benefit
on your contract application at contract issue, the Rider Effective Date is the
Issue Date. If you add the PRIME Plus Benefit after the Issue Date, the Rider
Effective Date is listed on the Contract Schedule Addendum. In the case of a
conflict with any provision in the Base Contract, the provisions of this rider
will control. Defined terms and contractual provisions are set forth in the Base
Contract or are added in this rider. This rider will terminate and be removed
from the Base Contract as indicated in the CONDITIONS FOR TERMINATION OF THIS
RIDER section.
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The purpose of this rider is to add Investment Option Allocation and Transfer
Restrictions to the Base Contract.
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RESTRICTIONS FOR SELECTING We will restrict your selection of certain Investment
INVESTMENT OPTIONS AND Options and the percentage of Rewards Value that you
MAKING TRANSFERS can have in certain Investment Options if any of the
following limits on volatility or risk are triggered:
(a) the average one-year volatility, as measured
by standard deviation, is greater than [15%].
(b) The average three-year volatility, as
measured by standard deviation, is greater than
[15%].
(c) The average one-year risk, as measured by the
beta compared to the Standard & Poor's 500
Composite Price Index, is greater than [75%].
(d) The average three-year risk, as measured by
the beta compared to the Standard & Poor's
500 Composite Price Index, is greater than [75%].
We will monitor (a) through (d) above. If any of
these limits on volatility or risk are
triggered, we will notify you and restrict
future allocations and transfers as follows:
(a) Group A Investment Options will no longer be
available to you,
(b) You cannot have more than [70%] of your total
Rewards Value in Group B Investment Options, and
(c) Group C Investment Options will be available for
any amount of Rewards Value whether or not the
limits on volatility or risk are triggered.
If the Rider Effective Date is the Issue Date,
the Investment Options in Group A, Group B and
Group C are shown on the Contract Schedule. If
the Rider Effective Date occurs after the Issue
Date, the Investment Options in Group A, Group B
and Group C are shown on the form on which you
elected to add the PRIME Plus Benefit Rider to
the Base Contract. We may periodically add and
remove Investment Options from Group A, Group B,
and Group C, and will notify you in writing when
this occurs.
NOTIFICATION AND If any of these limits on volatility or risk are
INSTRUCTIONS FOR triggered we will notify you and ask you to
LIMITATIONS reallocate any Rewards Value you have in the Group A
OF RESTRICTIONS Investment Options, and any amount in excess of [70%]
of the total Rewards Value that is in the Group B
Investment Options.
We will implement allocation and transfer
restrictions after any of these limits are
triggered and we have sent you written notice.
If we receive instructions from you before the
implementation date, we will reallocate your
Rewards Value according to those instructions.
If we do not receive any instructions from you
by the implementation date, or if your Contract
is still in violation of the allocation and
transfer restrictions listed above, we will
reallocate your Rewards Value on the
implementation date in the following order.
(1) Rewards Value in the Group A Investment Options:
(a) We will transfer all Rewards Value out
of the Group A Investment Options and
apply it to the Group B and/or Group C
Investment Options according to your
most recent allocation instructions,
excluding any allocations you made to
the Group A Investment Options.
(b) If your most recent allocation
instructions do not include any Group B
or Group C Investment Options, we will
transfer all Rewards Value out of the
Group A Investment Options and apply it
to the Money Market Investment Option
shown on the Contract Schedule.
S40721-REW 1
NOTIFICATION AND (2) More than [70%] of total Rewards Value in the
INSTRUCTIONS FOR Group B Investment Options:
LIMITATIONS OF (a) We will transfer the excess Rewards Value
RESTRICTIONS of (the amount of Rewards Value in the Group B
(CONTINUED) Investment Options that is in excess[70%] of
the total Rewards Value)out of the Group B
Investment Options and apply it to the Group
C Investment Options according to your most
recent allocation instructions, excluding any
allocations you made to the Group A and Group
B Investment Options.
(b) If your most recent allocation instructions
do not include any Group C Investment Options
we will transfer the excess Rewards Value out
of the Group B Investment Options and apply
it to the Money Market Investment Option
shown on the Contract Schedule.
After we implement these allocation and transfer
restrictions, Group A Investment Options will no
longer be available for allocations or
transfers. In addition, we will only allow you
to make allocations or transfers to Group B
Investment Options as long as the Rewards Value
in the Group B options would be [70%] of the
total Rewards Value or less after the allocation
or transfer. We will also monitor your Rewards
Value in the Group B Investment Options to
ensure that it does not exceed [70%] of the
total Rewards Value. If you have more than [70%]
of the total Rewards Value in the Group B
Investment Options we will reallocate your
Rewards Value as indicated above without
providing any advanced written notice.
CONDITIONS FOR TERMINATION This rider will terminate upon the earliest of
OF THIS RIDER the following.
(a) The termination of the Base Contract.
(b) The termination of both the GMIB and GPWB.
(c) The termination of the PRIME Plus Benefit
Rider.
In all other respects the provisions, conditions, exceptions and limitations
contained in the Contract remain unchanged.
Signed for the Company at its home office.
ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
[s/Xxxxx X. Xxxxxxxx] [s/Xxxx Xxxxxxxx]
Xxxxx X. Xxxxxxxx Xxxx Xxxxxxxx
Secretary President
S40721-REW 2
