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 INVESTMENT OPTIONS AND MAKING TRANSFERS
We will restrict your selection of certain Investment Options and the
percentage of Contract Value that you 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%].
In (a) through (d) above the standard deviation and beta are in regard to
aggregate Owner assets in the Investment Options held by the [Allianz Elite
contracts].
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, and
(b) You cannot have more than [70%] of your total Contract Value in Group
B Investment Options.
(c) Group C Investment Options will be available for any amount of
Contract 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 in 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 INSTRUCTIONS FOR LIMITATIONS OF RESTRICTIONS
If any of these limits on volatility or risk are triggered we will notify
you and ask you to reallocate any Contract Value you have in the Group A
Investment Options; and any amount in excess of [70%] of the total Contract
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 Contract 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 Contract Value on the implementation date in
the following order.
(1) Contract Value in the Group A Investment Options:
(a) We will transfer all Contract 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.
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NOTIFICATION AND INSTRUCTIONS FOR LIMITATIONS OF RESTRICTIONS (CONTINUED)
(b) If your most recent allocation instructions do not include any
Group B or Group C Investment Options we will transfer all the
Contract Value out of the Group A Investment Options and apply it
to the Money Market Investment Option shown on the Contract
Schedule.
(2) More than [70%] of total Contract Value in the Group B Investment
Options:
(a) We will transfer the excess Contract Value (the amount of
Contract Value in the Group B Investment Options that is in
excess of [70%] of the total Contract 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 Contract
Value out of the Group B Investment Options and apply it to the
Money Market Investment Option shown in 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 Contract Value in
the Group B options would be [70%] of the total Contract Value or less
after the allocation or transfer. We will also monitor your Contract Value
in the Group B Investment Options to ensure that it does not exceed [70%]
of the total Contract Value. If you have more than [70%] of the total
Contract Value in the Group B Investment Options we will reallocate your
Contract Value as indicated above without providing any advance written
notice.
CONDITIONS FOR TERMINATION OF THIS RIDER
This rider will terminate upon the earliest of 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
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