ENHANCED GUARANTEED MINIMUM DEATH BENEFIT 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 Issue Date of the Base Contract. 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. The following hereby replaces the section
of the Contract entitled "Death Benefit - Death Benefit Amount During The
Accumulation Phase". This rider will terminate as indicated in the "Conditions
for Termination of the Enhanced Guaranteed Minimum Death Benefit" section of
this rider.
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PROCEEDS PAYABLE ON DEATH
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DEATH BENEFIT AMOUNT DURING THE ACCUMULATION PHASE
The death benefit payable will be the greater of (a) or (b); less any
deductions we make to reimburse us for any applicable Premium Tax.
(a) The Contract Value determined as of the end of the Business Day during
which we received at the Service Center both due proof of death and an
election of the payment method; or
(b) The Enhanced Guaranteed Minimum Death Benefit (GMDB) value as defined
below determined as of the end of the Business Day during which we
received at the Service Center both due proof of death and an election
of the payment method.
The Enhanced GMDB is equal to the greater of (i) or (ii):
(i) [3%] Annual Increase Amount.
The [3%] Annual Increase Amount on the Issue Date is set equal to
the initial Purchase Payment; not including any applicable bonus.
On each Business Day other than a Contract Anniversary and before
the date of death or the date you exercise the Guaranteed Partial
Withdrawal Benefit (GPWB), if applicable, the [3%] Annual
Increase Amount is equal to:
(1) its value on the immediately preceding Business Day;
(2) plus any additional Purchase Payments, not including any
applicable bonus, received that day;
(3) reduced proportionately by the percentage of any Contract
Value taken as a withdrawal that day, including any
withdrawal charge;
(4) reduced proportionately by the percentage of any Contract
Value applied to Traditional Annuity Payments under a
Partial Annuitization that day; and
(5) reduced proportionately by the percentage of any PB Value
applied to Guaranteed Minimum Income Benefit (GMIB) Payments
under a Partial Annuitization that day; if applicable.
On each Contract Anniversary that occurs before the older Owner's
81st birthday and before the date of death or the date you
exercise the GPWB (if applicable); the [3%] Annual Increase
Amount is the product of [1.03] times its value on the
immediately preceding Business Day. We then process any
transactions received on that Contract Anniversary (such as
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 Owner's 81st birthday and before the date of death or
the date you exercise the GPWB (if applicable); we calculate the
[3%] Annual Increase Amount in the same way that we do on each
Business Day other than a Contract Anniversary.
The [3%] Annual Increase Amount has a maximum amount determined
by the following:
(1) the product of [1.5] times the total Purchase Payments
received not including any applicable bonus;
(2) reduced proportionately by the percentage of any Contract
Value withdrawn, including any withdrawal charge, for each
withdrawal;
(3) reduced proportionately by the percentage of any Contract
Value applied to Traditional Annuity Payments under a
Partial Annuitization for each traditional Partial
Annuitization; and
(4) reduced proportionately by the percentage of any PB Value
applied to GMIB Payments under a Partial Annuitization; if
applicable; for each GMIB Partial Annuitization.
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PROCEEDS PAYABLE ON DEATH (CONTINUED)
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DEATH BENEFIT AMOUNT DURING THE ACCUMULATION PHASE (CONTINUED)
(ii) The Maximum Anniversary Value (MAV). The Maximum Anniversary
Value on the Issue Date is set equal to the initial Purchase
Payment received; not including any applicable bonus.
On each Business Day other than a Contract Anniversary and before the
date of death or the date you exercise the GPWB, if applicable, the
MAV is equal to:
(1) its value on the immediately preceding Business Day;
(2) plus any additional Purchase Payments not including any
applicable bonus received that day;
(3) reduced proportionately by the percentage of any Contract Value
withdrawn that day including any withdrawal charge;
(4) reduced proportionately by the percentage of any Contract Value
applied to Traditional Annuity Payments under a Partial
Annuitization that day; and
(5) reduced proportionately by the percentage of any PB Value applied
to GMIB Payments under a Partial Annuitization taken that day; if
applicable.
On each Contract Anniversary that occurs before the older Owner's 81st
birthday and before the date of death or the date you exercise the
GPWB (if applicable); 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 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 Owner's 81st birthday and before the date of death or the date
you exercise the GPWB (if applicable); we calculate the MAV in the
same way that we do on each Business Day other than a Contract
Anniversary.
On the date you exercise the GPWB if applicable (b) above stops increasing;
and will decrease proportionately by the percentage of any Contract Value
withdrawn; including any withdrawal charges; for each GPWB Payment and/or
any Excess Withdrawals taken. If Joint Owners are named the age of the
older Owner will be used to determine the death benefit.
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GENERAL PROVISIONS
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CONDITIONS FOR TERMINATION OF THE ENHANCED GUARANTEED MINIMUM DEATH BENEFIT
This benefit will terminate on the earliest of:
(a) the Business Day before the Income Date that you take a Full
Annuitization;
(b) the Business Day that the Enhanced GMDB Value and the Contract
Value are both zero; or
(c) contract termination.
RIDER CHARGE
The charge for this rider is included in the Mortality and Expense Risk
Charge shown in the Contract Schedule.
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GLOSSARY
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DEFINITIONS
Definitions specific to this rider that are not in the Base Contract
follow.
BASE CONTRACT
The contract to which this rider is attached.
ENHANCED GUARANTEED MINIMUM DEATH BENEFIT
The death benefit that is provided by this rider.
TERMS DEFINED IN THE PRIME PLUS BENEFIT RIDER
The following terms are defined in the PRIME Plus Benefit Rider. If the
PRIME Plus Benefit Rider is not attached to your contract, these terms do
not apply to this Rider.
(1) Excess Withdrawals
(2) GMIB Payments
(3) GPWB Payments
(4) PB Value
In all other respects the provisions, conditions, exceptions and limitations
contained in the Base 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
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