INDIVIDUAL FLEXIBLE PURCHASE PAYMENT VARIABLE DEFERRED ANNUITY CONTRACT
--------------------------------------------------------------------------------

             THIS CONTRACT IS ISSUED IN CONSIDERATION OF THE INITIAL PURCHASE
             PAYMENT. THIS IS A VARIABLE ANNUITY CONTRACT WITH ANNUITY PAYMENTS
             AND CONTRACT VALUES INCREASING OR DECREASING DEPENDING ON THE
             EXPERIENCE OF THE VARIABLE ACCOUNT SHOWN ON THE CONTRACT SCHEDULE.
             WE WILL MAKE ANNUITY PAYMENTS AS SET FORTH IN THIS CONTRACT
             BEGINNING ON THE INCOME DATE. BENEFITS AVAILABLE UNDER THIS
             CONTRACT ARE NOT LESS THAN THOSE REQUIRED BY STATUTE OF THE STATE
             IN WHICH THIS CONTRACT IS DELIVERED.

             Signed for the Company at its home office on the Issue Date.

                 ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA

      /S/Wayne A. Robinson                  /S/Douglas P. Reynolds
         Wayne A. Robinson                     Douglas P. Reynolds
            Secretary                               President



         RIGHT TO EXAMINE: THIS CONTRACT MAY BE RETURNED WITHIN 10 DAYS AFTER
         YOU RECEIVE IT. IT CAN BE MAILED OR DELIVERED TO EITHER US OR THE
         REPRESENTATIVE WHO SOLD IT. RETURN OF THIS CONTRACT BY MAIL IS
         EFFECTIVE ON BEING POSTMARKED, PROPERLY ADDRESSED AND POSTAGE PREPAID.
         WE WILL PROMPTLY REFUND THE CONTRACT VALUE IN STATES WHERE PERMITTED.
         THIS MAY BE MORE OR LESS THAN THE PURCHASE PAYMENTS. WE HAVE THE RIGHT
         TO ALLOCATE PURCHASE PAYMENTS TO THE MONEY MARKET INVESTMENT OPTION
         UNTIL THE EXPIRATION OF THE RIGHT TO EXAMINE PERIOD. IF WE SO ALLOCATE
         PURCHASE PAYMENTS, WE WILL REFUND THE GREATER OF THE PURCHASE PAYMENTS
         LESS ANY WITHDRAWALS, OR THE CONTRACT VALUE.


              This is a legal contract between you and the Company.

                          READ YOUR CONTRACT CAREFULLY

                 ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
                            [5701 GOLDEN HILLS DRIVE]
                          [MINNEAPOLIS, MN 55416-1297]



L40529                               1


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                          GUIDE TO CONTRACT PROVISIONS
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         Contract Schedule.................................................3
         Definitions.................................................4, 5, 6
         Ownership.........................................................6
         Purchase Payments.................................................7
         Variable Account........................................... 7, 8, 9
               Variable Account
               Accumulation Unit Value
               Mortality and Expense Risk Charge
               Contract Maintenance Charge
               Contract Value
               Transfers
               Suspension or Deferral of Payments
         Withdrawals.......................................................9
         Annuity Provisions.......................................10, 11, 12
         Death Benefit ...........................................13, 14, 15
         General Provisions...........................................16, 17
                Misstatement of Age or Sex
                Income Date
                Conditions for Termination of the Contract

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  ------------------------------------------------------------------------------
                                   DEFINITIONS
  ------------------------------------------------------------------------------

  This section provides the meaning of special terms used throughout this
  contract. Most of these terms are capitalized throughout this contract to help
  you easily recognize them. Provision titles, section titles, and terms used in
  the Contract Schedule are also capitalized for your convenience.

 COMPANY                        Allianz Life Insurance Company of North America.
                                The terms "we", "our", and "us" also refer to
                                the Company.

 OWNER                          The person(s) or non-individual entitled to the
                                ownership rights stated in this contract. The
                                terms "you" and "your" also refer to the Owner.
                                The term "Contract Owner" may also be used to
                                mean Owner in some endorsements or riders.

 ACCUMULATION PHASE             The period of time before you elect to apply the
                                entire Contract Value to Annuity Payments.


 ACCUMULATION PORTION           The part of the contract that is in the
                                Accumulation  Phase.  The  Accumulation  Portion
                                begins on the Issue Date and ends upon the
                                earliest of the following.
                                (a)    The Business Day before the Income Date
                                       if you take a Full Annuitization.
                                (b)    The Business Day we process your request
                                       for a full withdrawal.
                                (c)     Upon the death of any Owner,  unless the
                                        contract is  continued  by the  deceased
                                        Owner's spouse, the Accumulation Portion
                                        will  terminate on the Business Day that
                                        the  Service  Center  receives  both due
                                        proof of death  and an  election  of the
                                        death benefit payment option.


 ACCUMULATION  UNIT             The units into which we convert amounts
                                invested in the subaccount(s) of your selected
                                Investment Option(s) during the Accumulation
                                Phase.

 ADJUSTED CONTRACT VALUE        The Contract Value less any
                                deduction made that is an amount equal to the
                                applicable Premium Tax paid by the Company.

 AGE                            The age as of the immediately preceding birthday
                                unless otherwise specified.

 ANNUITANT                      The natural person upon whose continuation of
                                life we base any Annuity Payments involving life
                                contingencies. The Annuitant is the person
                                designated by the Owner. The Annuitant is shown
                                on the Contract Schedule.

 ANNUITY OPTION                 An arrangement under which Annuity Payments are
                                made under this contract.

 ANNUITY PAYMENTS               The series of payments made to you or any Payee
                                you name beginning on any Income Date.

 ANNUITY PHASE                  The period of time beginning on the first Income
                                Date during which Annuity Payments are made.

 ANNUITY PORTION                The part of the contract  that is in the Annuity
                                Phase.  If you take Partial  Annuitizations,
                                you may have  multiple  Annuity  Portions.  Each
                                Annuity  Portion  begins on an Income  Date and
                                ends upon the earliest of the following.
                                (a)  Under Annuity Options 1 and 3, the death of
                                     the last surviving Annuitant.
                                (b)  Under Annuity Options 2 and 4, the death of
                                     the last surviving Annuitant and the
                                     expiration of the guaranteed period, or
                                     payment of the lump sum payment of the
                                     remaining guaranteed Annuity Payments.
                                (c)  Under Annuity Option 5, death of the
                                     Annuitant and payment of any lump sum
                                     refund.

  ANNUITY RESERVE               The assets which support the Annuity Option you
                                have selected during the Annuity Phase.

  ANNUITY UNIT                  The units into which we convert amounts
                                invested in the subaccount(s) of your selected
                                Investment Option(s) during the Annuity Phase.

  ASSUMED INVESTMENT RATE       The investment rate upon which we base variable
  (AIR)                         Annuity Payments.



L40529                                4
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  ------------------------------------------------------------------------------
                             DEFINITIONS (CONTINUED)
  ------------------------------------------------------------------------------

  AUTHORIZED REQUEST            A  request  that is  received  by the  Service
                                Center  in  good  order  (that  is,  in a form
                                that is satisfactory to the Company).


  BENEFICIARY                   The designated person(s) or entity(ies) to whom
                                we will pay the death benefit under this
                                contract. You name the Beneficiary(ies) at
                                issue. You may later change the Beneficiary(ies)
                                by Authorized Request as described in the Change
                                of Beneficiary provision of this contract.

                                For jointly owned contracts, the surviving Joint
                                Owner is the sole primary Beneficiary. Spousal
                                Joint Owners may also name contingent
                                Beneficiaries. For tax reasons non-spousal Joint
                                Owners cannot name contingent Beneficiaries.

  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. Our
                                Business Day closes when regular trading on the
                                New York Stock Exchange closes, which is usually
                                at 4:00 p.m. Eastern Time. We will process any
                                instructions received after the close of any
                                Business Day on the next Business Day.

  CONTRACT ANNIVERSARY          A 12-month anniversary of the Issue Date of this
                                contract.

  CONTRACT VALUE                The Contract Value for any Business Day is
                                equal to the total dollar value accumulated in
                                the investment choices under this contract
                                excluding amounts applied to Annuity Payments.

  CONTRACT YEAR                 A period of 12 consecutive months. The
                                first Contract Year begins on the Issue Date,
                                and subsequent Contract Years begin on the
                                Contract Anniversary. All Contract Years end on
                                the day before the next Contract Anniversary.

  FULL ANNUITIZATON             The application of all of the
                                Adjusted Contract Value to Annuity Payments
                                according to the Annuity Options in this
                                contract and/or any attached endorsements or
                                riders.

  GENERAL ACCOUNT               Our general  investment  account which contains
                                all the assets of the Company with the exception
                                of the Variable Account and other separate
                                accounts.

  INCOME DATE                   A date that Annuity  Payments begin.  The date
                                Annuity  Payments are scheduled to begin is
                                shown on the Contract Schedule.

  INVESTMENT OPTIONS            The investment  choices available under the
                                Variable Account.  The Investment  Options are
                                shown on the Contract Schedule.

  ISSUE DATE                    The first day of this contract. It is also
                                the date when the first Contract Year begins.
                                The Issue Date is shown on the Contract Schedule
                                and determines the Contract Anniversaries, and
                                the beginning of each Contract Year.

  JOINT ANNUITANT               You can add a Joint Annuitant for the
                                Annuity Phase subject to our approval. If we
                                allow Joint Annuitants, we will base Annuity
                                Payments on the lives of both Joint Annuitants.

  JOINT OWNER                   A contract may be owned by Joint Owners.
                                Joint Owners have equal contract ownership
                                rights. Both Joint Owners must authorize the
                                exercise of these rights in writing unless
                                otherwise allowed by us. If Joint Owners are
                                named, all references to Owner shall mean Joint
                                Owners.

  NET ASSET VALUE               The value of a share of an
                                underlying Investment Option, less any
                                investment management and portfolio
                                administration fees and expenses, as of the
                                close of trading on a Business Day.

  PARTIAL ANNUITIZATION         The application of a portion of
                                the Adjusted Contract Value to Annuity Payments
                                according to the Annuity Options in this
                                contract and/or any attached endorsements or
                                riders.

  PAYEE                         The person to whom Annuity Payments are made
                                payable.  Unless you designate  another Payee,
                                you will be the Payee of the Annuity Payments.

  PREMIUM TAX                   Any Premium Taxes owed by the Company to any
                                governmental entity.

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                             DEFINITIONS (CONTINUED)
  ------------------------------------------------------------------------------

  PURCHASE PAYMENT              Any payment made toward this contract.

  SERVICE CENTER                The office shown on the Contract Schedule
                                of this contract. All notices, requests and
                                Purchase Payments must be sent to the Service
                                Center.

  VARIABLE ACCOUNT              A separate  account we maintainto  which a
                                portion of our assets have been  allocated for
                                this contract and  certain  other  variable
                                annuity  contracts.  The  Variable  Account  is
                                shown  on the  Contract Schedule.

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                                    OWNERSHIP
--------------------------------------------------------------------------------

ASSIGNMENT OF THIS              You may assign or transfer all of your ownership
CONTRACT                        rights of this contract. An Authorized Request
                                specifying the terms of an assignment of this
                                contract must be provided to the Service Center
                                and approved by us. We will record your
                                assignment. We will not be responsible for its
                                validity or effect, including tax consequences.
                                We will also not be liable for actions we take
                                or payments we make before we receive and record
                                the assignment.

                                Any assignment  made after the death benefit has
                                become  payable  will be  valid  only  with  our
                                consent.  If you assign this  contract,  you can
                                exercise  your  rights  only  with  the  written
                                consent of the assignee of record.

CHANGE OF OWNERSHIP             You may change ownership of this contract to a
                                new Owner at any time subject to our approval.
                                The change is effective as of the date the
                                Authorized Request is signed, subject to our
                                underwriting guidelines at the time of the
                                request. We are not liable for any actions we
                                take before we receive the request. A change of
                                ownership will automatically revoke any prior
                                designation of Owner.

                                A change of ownership does not change the
                                existing designated Annuitant(s) or
                                Beneficiary(ies). The new Owner may request a
                                change of Annuitant(s) and/or Beneficiary (ies)
                                by providing an Authorized Request.

                                We will not be responsible for any tax
                                consequence of any such change.

NON-INDIVIDUAL OWNERS           If the Contract is owned by a non-individual,
                                then we treat the Annuitant as the Owner for
                                purposes of any death benefit, income benefit,
                                or any endorsement or rider.

                                We will use the Age of the Annuitant to
                                determine any death benefit or income benefit.

                                The term "non-natural owner" may also be used to
                                mean "non-individual owner" in any endorsement
                                and/or rider.

CHANGE OF ANNUITANT             You may change the Annuitant at any time before
                                the Income Date by an Authorized Request, unless
                                the Owner is a non-individual.

CHANGE OF BENEFICIARY           For solely owned contracts, you may change the
                                primary Beneficiary(ies) or contingent
                                Beneficiary(ies) at any time before your death.

                                For jointly owned contracts the surviving Joint
                                Owner is the sole primary Beneficiary and cannot
                                be changed. However, if the Joint Owners are
                                spouses, you may change the contingent
                                Beneficiary(ies) at any time before your death.
                                For tax reasons we do not allow non-spousal
                                Joint Owners to appoint contingent
                                Beneficiaries.

                                Changes are subject to the rights of any
                                irrevocable Beneficiary(ies). You may change the
                                named Beneficiary(ies) by providing an
                                Authorized Request. The change will take effect
                                as of the date the Authorized Request is signed.
                                If the Authorized Request reaches our Service
                                Center after an Owner dies but before we make
                                any payment, the change will be valid. We will
                                not be liable for any payment we make or action
                                we take before the Service Center records the
                                change.



L40529                                  6
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                                PURCHASE PAYMENTS
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PURCHASE PAYMENTS               The initial Purchase Payment is due on
                                the Issue Date. We reserve the right to decline
                                any Purchase Payment. The Initial Purchase
                                Payment, Minimum Additional Purchase Payment and
                                the Maximum Total Purchase Payments allowed are
                                shown on the Contract Schedule.

NO DEFAULT                      This contract will not be in default if you do
                                not make additional Purchase Payments.

ALLOCATION OF PURCHASE          We allocate your Purchase Payments to one or
PAYMENTS                        more of the Investment Options according to your
                                instructions. However, we reserve the right to
                                allocate the initial Purchase Payment to the
                                Money Market Investment Option until the
                                expiration of the Right to Examine period.
                                Unless you inform us otherwise, we allocate
                                additional Purchase Payments in the same manner
                                as the initial Purchase Payment.

                                All allocations of Purchase Payments are subject
                                to the Allocation Guidelines shown on the
                                Contract Schedule. We guarantee that you will be
                                allowed to select at least five Investment
                                Options for such allocations.


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                                VARIABLE ACCOUNT
--------------------------------------------------------------------------------

VARIABLE ACCOUNT                The Variable Account is shown on the Contract
                                Schedule. It consists of assets we have set
                                aside and have kept separate from the rest of
                                our assets and those of our other separate
                                accounts. The assets of the Variable Account,
                                equal to reserves and other liabilities of your
                                contract and all other contracts issued through
                                the Variable Account, will not be charged with
                                liabilities arising out of any other business we
                                may conduct.

                                The Variable Account assets are divided into
                                subaccounts corresponding to the Investment
                                Options as shown on the Contract Schedule. We
                                may add, substitute, or remove Investment
                                Options shown in the Contract Schedule.

                                We may limit further Purchase Payment
                                allocations to an Investment Option, or
                                substitute subaccount Accumulation Units of
                                another Investment Option for an Investment
                                Option you previously selected, subject to the
                                requirements of applicable law.

VALUATION OF ASSETS             Assets of the subaccounts will be valued at
                                their Net Asset Value on each Business Day,
                                except when an Investment Option does not value
                                its shares.

ACCUMULATION UNITS              The Purchase Payments you allocate to the
                                Investment Options are placed into subaccounts.
                                Each subaccount invests exclusively in one
                                Investment Option. Accumulation Units are used
                                to account for all amounts allocated to or
                                withdrawn from the Investment Options as a
                                result of Purchase Payments, withdrawals,
                                transfers, Partial Annuitizations, or fees and
                                charges.

                                The number of subaccount Accumulation Units is
                                determined by dividing the amount allocated to,
                                or withdrawn from, the subaccount by the dollar
                                value of one subaccount Accumulation Unit at the
                                end of the Business Day as of which the
                                transaction is processed at the Service Center.

                                Purchase Payments, withdrawals and transfers to
                                or from a subaccount will result in the increase
                                or decrease in the number of subaccount
                                Accumulation Units.

ACCUMULATION UNIT VALUE         The subaccount Accumulation Unit value was
                                initially arbitrarily set. Subsequent subaccount
                                Accumulation Unit values are determined by
                                multiplying the subaccount Accumulation Unit
                                value for the immediately preceding Business Day
                                by the subaccount's net investment factor for
                                the current Business Day.

                                The subaccount Accumulation Unit value may
                                increase or decrease from Business Day to
                                Business Day.



L40529                                     7
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                          VARIABLE ACCOUNT (CONTINUED)
--------------------------------------------------------------------------------

  NET INVESTMENT FACTOR         The net investment factor for a subaccount is
                                determined by dividing (a) by (b) and
                                multiplying the result by [(1 - (c))] where:
                                (a)     is equal to:
                                       (1)   the Net Asset Value of a subaccount
                                             at the end of the current Business
                                             Day;
                                       (2)   plus any dividend or capital gains
                                             declared on behalf of the
                                             subaccount that has an ex-dividend
                                             date after the immediately
                                             preceding Business Day and before
                                             the close of business on the
                                             current Business Day.
                                (b)     is equal to the Net Asset Value of the
                                        subaccount at the end of the immediately
                                        preceding Business Day.
                                (c)     is equal to :
                                       (1)   the Mortality and Expense Risk
                                             Charge as shown on the Contract
                                             Schedule for the current Business
                                             Day and any additional calendar
                                             days since the immediately
                                             preceding Business Day;
                                       (2)   plus a charge for any tax liability
                                             related to the contracts or the
                                             Variable Account.

MORTALITY AND EXPENSE RISK      Each Business Day we deduct a Mortality and
CHARGE                          Expense Risk Charge from the assets in each
                                subaccount that is equal, on an annual basis, to
                                the amount shown on the Contract Schedule. The
                                Mortality and Expense Risk Charge compensates
                                the Company for assuming the mortality and
                                expense risks under this contract.

MORTALITY AND EXPENSE           We guarantee that the dollar amount of Annuity
GUARANTEE                       Payments after the first will not be affected by
                                variations in mortality or expense experience.

CONTRACT MAINTENANCE CHARGE     We may deduct an annual Contract Maintenance
                                Charge during both the Accumulation and
                                Annuity Phases. This charge is shown on the
                                Contract Schedule.

CONTRACT VALUE                  We determine the Contract Value in the
                                Variable Account by multiplying the number of
                                Accumulation Units in each subaccount by the
                                subaccount Accumulation Unit value and then
                                adding these results together.

TRANSFERS                       You may transfer all or a part of your interest
                                in an Investment Option to another Investment
                                Option by making an Authorized Request. Transfer
                                instructions apply equally to the Accumulation
                                Portion and any Annuity Portions of this
                                contract. You cannot make transfers within only
                                one portion of this contract. We reserve the
                                right to charge for transfers if the number of
                                free transfers exceeds the number shown on the
                                Contract Schedule. All transfers are subject to
                                the following criteria.
                                (a)     Any Transfer Fee that we may impose is
                                        shown on the Contract Schedule. We will
                                        deduct the Transfer Fee proportionately
                                        from the balance in the Investment
                                        Options from which you make the transfer
                                        if you transfer less than the entire
                                        amount in the Investment Options. If you
                                        transfer the entire amount in the
                                        Investment Options, then we will deduct
                                        the Transfer Fee from the amount
                                        transferred. If you are transferring
                                        from multiple Investment Options, we
                                        will consider the transfer as a single
                                        transfer for the purpose of any Transfer
                                        Fee.
                                (b)     We reserve the right to limit transfers
                                        until the expiration of the Right to
                                        Examine period.
                                (c)     Any transfer request must clearly
                                        specify:
                                       (1)   the amount you wish to transfer;
                                             and
                                       (2    the investment choices that are to
                                             be affected.
                                (d)     After the Income Date, you cannot make
                                        transfers from a fixed Annuity Payment
                                        stream to a variable Annuity Payment
                                        stream.
                                (e)     After the Income Date you can make
                                        transfers from a variable Annuity
                                        Payment stream to establish a new fixed
                                        Annuity Payment stream. The number of
                                        Annuity Units canceled from a subaccount
                                        will be equal in value to the amount of
                                        Annuity Reserve transferred out of the
                                        subaccount. The amount transferred will
                                        purchase fixed Annuity Payments under
                                        the Annuity Option in effect based on
                                        the Annuitant's sex (where permitted)
                                        and Age at the time of the transfer.


L40529                                   8


<PAGE>
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                          VARIABLE ACCOUNT (CONTINUED)
--------------------------------------------------------------------------------
TRANSFERS (CONTINUED)           Your right to make transfers is subject to
                                modification if we determine, at our sole
                                discretion, that the exercise of the right by
                                one or more Owners is, or would be, to the
                                disadvantage of other Owners. We may apply
                                restrictions in any manner reasonably designed
                                to prevent any use of the transfer right which
                                we consider to be to the disadvantage of other
                                Owners, including rejecting a transfer request.
                                We may apply restrictions on transfers to or
                                from one or more of the Investment Options,
                                which could include, but are not limited to, the
                                following.
                                (a)     Requiring a minimum time period between
                                        each transfer.
                                (b)     Limiting the frequency of transfers.
                                (c)     Not accepting a transfer request from,
                                        or made on your behalf by, a third
                                        party.
                                (d)     Limiting the dollar amounts that an
                                        Owner may transfer between the
                                        Investment Options at any one time.
                                (e)     Not accepting transfer instructions
                                        other than by first class U.S. mail.
                                (f)     Prohibiting transfers into specific
                                        Investment Options.

                                We reserve the right to modify the transfer
                                provisions subject to applicable law at any time
                                and without prior notice to any party.

                                If you elect to use this transfer privilege, we
                                will not be liable for transfers made in
                                accordance with your instructions. We will
                                determine the number and value of the subaccount
                                Accumulation Units to be transferred as of the
                                end of the Business Day immediately following
                                our receipt of the Authorized Request for
                                transfer.

SUSPENSION OR DEFERRAL OF       The Company reserves the right to suspend or
PAYMENTS                        postpone payments from the Variable Account for
                                a withdrawal or transfer for any of the
                                following.

                                (a)     The New York Stock Exchange is closed,
                                        other than customary weekend and holiday
                                        closings.
                                (b)     Trading on the New York Stock Exchange
                                        is restricted.
                                (c)     An emergency 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.
                                (d)     During any other period when the
                                        Securities and Exchange Commission, by
                                        order, so permits for the protection of
                                        Owners.

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                              WITHDRAWALS
--------------------------------------------------------------------------------

 FULL AND PARTIAL               During the Accumulation Phase, you may, upon an
 WITHDRAWALS                    Authorized Request, make a full or partial
                                withdrawal from this contract. Withdrawals will
                                result in the cancellation of Accumulation Units
                                from each subaccount of your selected Investment
                                Options in the ratio that the value of each
                                subaccount bears to the total Contract Value.

                                The Company will pay the amount of any
                                withdrawal from the Variable Account within
                                seven days of receipt of an Authorized Request
                                unless the Suspension or Deferral of Payments
                                provision of this contract is in effect.

WITHDRAWAL CHARGE               Upon a full or partial withdrawal of this
                                contract we may assess a Withdrawal Charge as
                                shown on the Contract Schedule. Under certain
                                circumstances, we allow withdrawals without the
                                Withdrawal Charge as set forth on the Contract
                                Schedule or any attached endorsements or riders.

PARTIAL WITHDRAWAL              The minimum amount that you can take as a
                                partial withdrawal and the minimum Contract
                                Value that must remain in this contract after a
                                partial withdrawal is shown on the Contract
                                Schedule. Any request for a partial withdrawal
                                that would reduce the Contract Value below this
                                minimum will be treated as a request for a full
                                withdrawal.


L40529                                   9
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                               ANNUITY PROVISIONS
--------------------------------------------------------------------------------

  ANNUITIZATION                 Annuity Payments will depend on the following
                                criteria.
                                (a)     The amount of Adjusted Contract Value
                                        applied to the Annuity Payments on the
                                        Income Date.
                                (b)     The Age of the Annuitant and any Joint
                                        Annuitant on the Income Date.
                                (c)     The sex of the Annuitant and any Joint
                                        Annuitant, where permitted.
                                (d)     The Annuity Option selected.

                                You can elect to receive Annuity Payments as
                                variable, or fixed, or a combination of both
                                variable and fixed Annuity Payments.

                                Variable Annuity Payments will also depend on
                                the following.
                                (a)     The investment allocations that are in
                                        place on the Income Date
                                (b)     The Assumed Investment Rate (AIR).
                                (c)     The mortality table shown on the
                                        Contract Schedule.
                                (d)     The future performance of your selected
                                        Investment Options.

                                Fixed Annuity Payments are guaranteed to be at
                                least equal to the Adjusted Contract Value,
                                divided first by $1,000 and then multiplied by
                                the appropriate fixed Annuity Payment amount for
                                each $1,000 of value for the Annuity Option
                                selected, as shown on the Contract Schedule.

  FULL ANNUITIZATON             You may apply all of the Adjusted
                                Contract Value to Annuity Payments according to
                                the Annuity Provisions in this contract and/or
                                any attached endorsement or rider.

  PARTIAL ANNUITIZATION         The Annuitant must be the Owner
                                for each Partial Annuitization. We do not allow
                                Partial Annuitizations for contracts that have
                                Joint Owners. We do not allow you to appoint a
                                Joint Annuitant for Partial Annuitizations.

                                You may take a Partial Annuitization by applying
                                only part of the Adjusted Contract Value to
                                Annuity Payments according to the Annuity
                                Provisions in this contract and/or any attached
                                endorsements or riders.

                                A Partial Annuitization will decrease the
                                amounts available for withdrawals, payments of
                                the death benefit, and any additional Annuity
                                Payments. Amounts applied to a Partial
                                Annuitization and Annuity Payments made under a
                                Partial Annuitization are not subject to a
                                Withdrawal Charge.

                                You can take one Partial Annuitization every 12
                                months. The maximum number of annuitizations we
                                allow at any one time is five. You cannot
                                allocate additional Adjusted Contract Value to
                                an existing stream of Annuity Payments. You also
                                cannot transfer amounts allocated to an Annuity
                                Portion back to the Accumulation Portion.

  ANNUITY UNITS                 On the Income Date, if you select variable
                                Annuity Payments, we purchase Annuity Units of
                                each subaccount for your selected Investment
                                Options. Thereafter, the number of Annuity Units
                                in each subaccount generally remains unchanged
                                unless you make a transfer.

                                We determine how many Annuity Units of each
                                subaccount to purchase as follows. We first
                                determine the amount of the initial variable
                                Annuity Payment. The initial variable Annuity
                                Payment is equal to (a) divided by $1,000, with
                                the result then multiplied by (b), where:
                                (a)     is the amount of Adjusted Contract Value
                                        applied to variable Annuity Payments;
                                        and
                                (b)     is the appropriate variable Annuity
                                        Payment amount for each $1,000 of value
                                        for the Annuity Option selected, as
                                        shown in the table on the Contract
                                        Schedule.

                                We then determine the amount of the initial
                                variable Annuity Payment that will come from
                                each of the subaccounts based on your most
                                recent allocation instructions. We determine the
                                number of Annuity Units to purchase for each
                                subaccount by dividing the amount of the initial
                                variable Annuity Payment that will come from
                                each subaccount by the subaccount's Annuity Unit
                                value on the Income Date.

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                         ANNUITY PROVISIONS (CONTINUED)
--------------------------------------------------------------------------------

 ANNUITY UNITS                  On each Business Day after the Income Date, we
 (CONTINUED)                    determine the value of a subaccount Annuity Unit
                                as follows.

                                We multiply the value of the Annuity Unit for
                                the immediately preceding Business Day by the
                                net investment factor for the current Business
                                Day and then divide by the assumed net
                                investment factor for the current Business Day.

                                The assumed net investment factor is equal to
                                one plus the AIR, adjusted to reflect the number
                                of calendar days that have elapsed since the
                                immediately preceding Business Day.

                                The AIR that we will use for variable Annuity
                                Payments is shown on the Contract Schedule. A
                                different value may be used with our permission.

                                All calculations will appropriately reflect the
                                variable Annuity Payment frequency selected.

                                On each subsequent variable Annuity Payment
                                date, the total variable Annuity Payment is the
                                sum of the variable Annuity Payments for each
                                Investment Option. The variable Annuity Payment
                                for each Investment Option is determined by
                                multiplying the number of subaccount Annuity
                                Units for the Investment Option by the
                                subaccount Annuity Unit value.

ANNUITY  OPTION SELECTION       This contract provides for variable or fixed
                                Annuity Payments under one of the following
                                Annuity Options. The Company may make available
                                other payment options. You can select an Annuity
                                Option by an Authorized Request. You may select
                                and/or change the Annuity Option by an
                                Authorized Request, at least 30 days before any
                                Income Date.


DEFAULT ANNUITY OPTION          If you do not select an Annuity Option by the
                                Income Date shown on the Contract Schedule, we
                                will make variable Annuity Payments to the Payee
                                under Annuity Option 2, a life annuity, with
                                monthly payments over five years guaranteed.

OPTION 1 - LIFE ANNUITY         We will make Annuity Payments during the life of
                                the Annuitant. The last payment will be the one
                                that is due before the Annuitant's death.

OPTION 2 - LIFE ANNUITY         We will make Annuity Payments during the life of
WITH PAYMENTS OVER 5, 10,       the Annuitant. If you take one single Full
15 OR 20 YEARS GUARANTEED       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.

                                A lump sum payment under this Annuity Option is
                                equal to the present value of the remaining
                                guaranteed Annuity Payments, as of the date we
                                receive proof of the Annuitant's death and a
                                payment election form at our Service Center.

                                For variable Annuity Payments, we base the
                                remaining guaranteed Annuity Payments on the
                                current value of the Annuity Units and we use
                                the AIR to calculate the present value.

                                For fixed Annuity Payments, 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.

                                We require due proof of the Annuitant's death
                                and return of this contract before we will make
                                any lump sum payment.

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                         ANNUITY PROVISIONS (CONTINUED)
--------------------------------------------------------------------------------
OPTION 3- JOINT AND LAST        We will make Annuity Payments during the joint
SURVIVOR ANNUITY                lifetimes 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. The
                                last payment will be the one that is due before
                                the last surviving Joint Annuitant's death.

                                This Annuity Option is not available for Partial
                                Annuitization.

OPTION 4 - JOINT AND LAST       We will make Annuity Payments during the joint
SURVIVOR ANNUITY WITH           lifetimes of the Annuitant and the Joint
PAYMENTS OVER 5, 10, 15 OR      Annuitant. Upon the death of one Annuitant,
20 YEARS GUARANTEED             Annuity Payments to the Payee will continue
                                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. This Annuity Option's lump sum
                                payment is equal to the present value of the
                                remaining guaranteed Annuity Payments as of the
                                date we receive due proof of the last surviving
                                Joint Annuitant's death at the Service Center.

                                For variable Annuity Payments, we base the
                                remaining guaranteed Annuity Payments on the
                                current value of the Annuity Units and we use
                                the AIR to calculate the present value.

                                For fixed Annuity Payments, 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.

                                We require due proof of death of both Joint
                                Annuitants and return of this contract before we
                                will make any lump sum payment.

                                This Annuity Option is not available for Partial
                                Annuitization.

OPTION 5 - REFUND LIFE          We will make Annuity Payments during the
ANNUITY                         lifetime of the Annuitant; and the last payment
                                will be the one due before the Annuitant's
                                death. After the Annuitant's death, the Payee
                                may receive a lump sum refund.

                                For a fixed Annuity Payment, 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.

                                For variable 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)     is the Annuity Unit value of the
                                        subaccount for that Investment Option as
                                        of the Business Day when due proof of
                                        the Annuitant's death is received at the
                                        Service Center.
                                (b)     is the amount applied to variable
                                        Annuity Payments on the Income Date.
                                (c)     is the allocation percentage in that
                                        subaccount, in decimal form, as of the
                                        Business Day when due proof of the
                                        Annuitant's death is received at the
                                        Service Center.
                                (d)     is the number of Annuity Units used in
                                        determining each variable Annuity
                                        Payment attributable to that subaccount
                                        as of the Business Day when due proof of
                                        the Annuitant's death is received at the
                                        Service Center.
                                (e)     is the dollar value of first variable
                                        Annuity Payment.
                                (f)     is the number of variable Annuity
                                        Payments made since the Income Date.
                                We will base this calculation upon the
                                allocation of Annuity Units in-force as of the
                                Business Day when due proof of the Annuitant's
                                death is received at the Service Center. If the
                                total refund determined using the above
                                calculation is less than or equal to zero, no
                                refund payment is due.

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                                  DEATH BENEFIT
--------------------------------------------------------------------------------


PAYMENT OF DEATH BENEFIT        The Company will require due proof of death,
DURING THE ACCUMULATION         selection of a death benefit payment option, and
PHASE                           any required governmental forms before we pay
                                any death benefit. Due proof of death will be
                                any one of the following.
                                (a)     A certified copy of the death
                                        certificate.
                                (b)     A decree of a court of competent
                                        jurisdiction as to the finding of death.
                                (c)     Any other proof satisfactory to the
                                        Company.

                                All death benefits will be paid in accordance
                                with applicable law or regulations governing
                                death benefit payments.

DEATH OF SOLE OWNER DURING      Upon the death of a sole Owner during the
THE ACCUMULATION PHASE          Accumulation Phase, we will pay a death benefit
                                to the Beneficiary.

                                If the Beneficiary is the spouse of the
                                decedent, he or she may elect instead to
                                continue the contract as described below in the
                                Continuation of Contract by Surviving Spouse
                                provision.

DEATH OF JOINT OWNER(S)         The surviving Joint Owner is the sole primary
DURING THE ACCUMULATION         Beneficiary on a jointly owned contract. Upon
PHASE                           the death of any Joint Owner during the
                                Accumulation Phase, the surviving Joint Owner
                                will receive the death benefit.

                                If the surviving Joint Owner is the spouse of
                                the decedent, he or she may elect instead to
                                continue the contract as described below in the
                                Continuation of Contract by Surviving Spouse
                                provision.

                                If the Joint Owners were spouses and the
                                surviving Joint Owner dies before receiving the
                                death benefit, we will pay the death benefit to
                                any contingent Beneficiaries. If the spousal
                                Joint Owners did not name any contingent
                                Beneficiaries we will pay the death benefit to
                                the estate of the Joint Owner who died last.

                                If the Joint Owners were not spouses and the
                                surviving Joint Owner dies before receiving the
                                death benefit, we will pay it to the estate of
                                the Joint Owner who died last.

CONTINUATION OF CONTRACT        During the Accumulation Phase, a surviving
BY SURVIVING SPOUSE             spouse who is either a surviving Joint Owner or
                                the Beneficiary of a sole Owner may elect to
                                continue this contract as a sole Owner, instead
                                of receiving payment of the death benefit. The
                                surviving spouse can continue the contract by
                                making an Authorized Request to the Service
                                Center before we pay the death benefit. We will
                                then adjust the Contract Value to equal the
                                death benefit if the death benefit is greater
                                than the Contract Value. We will make that
                                change as of the end of the Business Day during
                                which we receive in good order at the Service
                                Center both due proof of death and the election
                                of the death benefit payment option. Any part of
                                the Contract Value in the Investment Options
                                will be subject to investment risk.

                                If the surviving spouse continues the contract,
                                he or she may exercise all the Owner's rights
                                under this contract, including naming a new
                                Beneficiary or Beneficiaries.

                                An election to continue the contract by a
                                surviving spouse who is either a surviving Joint
                                Owner or the Beneficiary of a sole Owner is not
                                treated as a distribution for tax purposes.

DEATH OF ANNUITANT DURING       No death benefit is payable upon the death of an
THE ACCUMULATION PHASE          Annuitant who was not an Owner. The Owner can
                                name a new Annuitant subject to our approval. If
                                the Owner is a non-individual we will treat the
                                death of the Annuitant as the death of the
                                Owner, we will pay a death benefit to the
                                Beneficiary, and another Annuitant cannot be
                                named.

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                            DEATH BENEFIT (continued)
--------------------------------------------------------------------------------

Traditional Death Benefit       The death benefit is equal to the greater of (a)
Amount During the               or (b) less any deduction we make to reimburse
Accumulation Phase              ourselves for any applicable Premium Tax; where
                                (a)     is the Contract Value determined as of
                                        the end of the Business Day during which
                                        we receive in good order at the Service
                                        Center both due proof of death and an
                                        election of the death benefit payment
                                        option.
                                (b)     is the Traditional Death Benefit value,
                                        which is equal to the total of all
                                        Purchase Payments received reduced
                                        proportionately by:
                                       (1)   the percentage of Contract Value
                                             taken as a withdrawal, including
                                             any withdrawal charge, for each
                                             withdrawal taken. If your contract
                                             includes the Lifetime Plus Benefit
                                             Rider then withdrawals include
                                             Lifetime Plus Payments and any
                                             Excess Withdrawals; and
                                       (2)   the percentage of Contract Value
                                             applied to Annuity Payments under a
                                             Partial Annuitization, for each
                                             Partial Annuitization taken.

                               Any part of the death benefit amount that had
                               been invested in the Variable Account remains in
                               the Variable Account until distribution begins.
                               From the time we determine the death benefit
                               until we make complete distribution, any amount
                               in the Variable Account will be subject to
                               investment risk, which is borne by the
                               Beneficiary.

 Death Benefit Payment         If the Owner has not previously designated a
 Options During the            death benefit payment option, a Beneficiary must
 Accumulation Phase            request that the death benefit be paid by one of
                               the payment options below.

                               Option A - A lump sum payment of the death
                               benefit. We will not deduct the Contract
                               Maintenance Charge under this option.

                               Option B - Deferral of payment of the death
                               benefit for up to five years from the date of the
                               death of any Owner. We will assess the Contract
                               Maintenance Charge on each Beneficiary's portion
                               proportionately on each Contract Anniversary. Any
                               part of the death benefit that is in the Variable
                               Account will be subject to investment risk, which
                               is borne by the Beneficiary.

                               Option C - Payment of the death benefit as an
                               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 must begin within one
                               year of the date of death of the Owner or any
                               Joint Owner. We will continue to assess the full
                               Contract Maintenance Charge on each Beneficiary's
                               portion proportionately over the Annuity
                               Payments. Any part of the death benefit applied
                               to variable Annuity Payments will be subject to
                               investment risk, which is borne by the
                               Beneficiary.

                               Any portion of the death benefit not applied to
                               Annuity Payments under an Annuity Option within
                               one year of the date of the Owner's death must be
                               distributed within five years of the date of
                               death.

                               If a lump sum payment is requested, we will pay
                               the amount from the Variable Account within seven
                               days of receipt of due proof of death and an
                               election of the death benefit payment option,
                               including any required governmental forms, unless
                               the Suspension or Deferral of Payments provision
                               in this contract is in effect.

L40529                               14

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                            DEATH BENEFIT (continued)
--------------------------------------------------------------------------------

Death of Owner                  Upon the death of a sole Owner, the Beneficiary
and/or Annuitant During         becomes the Owner. Upon the death of any Joint
the Annuity Phase               Owner, the surviving Joint Owner becomes the
                                sole Owner. We will not pay a death benefit in
                                either case, but any remaining Annuity Payments
                                to the Payee will continue as provided in the
                                Annuity Option(s) in effect.

                                If the decedent was an Annuitant and there is a
                                surviving Joint Annuitant, any remaining Annuity
                                Payments to the Payee will continue during the
                                lifetime of the Joint Annuitant, as provided by
                                the selected Annuity Option(s). We will not pay
                                a death benefit.

                                If the decedent was the only Annuitant, any
                                remaining Annuity Payments will continue as
                                provided for in the selected Annuity Option(s).
                                We will not pay a death benefit under Annuity
                                Options 1 through 4. However, there may be a
                                lump sum refund due to the Payee under Annuity
                                Option 5. After all remaining Annuity Payments
                                or lump sum refunds have been paid, all Annuity
                                Portions of the contract will terminate.

Conditions for                  This benefit will terminate on the earliest of
Termination of the              the following.
Traditional Death
Benefit                         (a)     The Business Day before the Income Date
                                        that you take a Full Annuitization.
                                (b)     The Business Day that the Traditional
                                        Death Benefit value and the Contract
                                        Value are both zero.
                                (c)     The Business Day that the Accumulation
                                        Portion terminates.
                                (d)     The Business Day that the Contract
                                        terminates.

L40529                               15
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                               GENERAL PROVISIONS
--------------------------------------------------------------------------------

Entire Contract                 We have issued this contract in consideration of
                                the initial Purchase Payment. This contract, any
                                attached application, endorsements, or riders,
                                together are the entire contract.

Incontestability of this        We will not contest this contract.
Contract

Misstatement of Age or Sex      We may require proof of Age of the Annuitant
                                before making any life contingent Annuity
                                Payment provided for in the contract. If there
                                has been a misstatement of the Annuitant's Age
                                and/or sex, we will adjust the Annuity Payments
                                to the amount that would have been provided at
                                the correct Age and sex.

                                Once Annuity Payments have begun, any
                                underpayments will be made up in one sum with
                                the next Annuity Payment, and overpayments will
                                be deducted from the future Annuity Payments
                                until the total is repaid.

  Annual Report                 We will send you a report at least once each
                                calendar year showing the Contract Value. This
                                report will be sent to your last known address.

  No Dividends are Payable      This is a nonparticipating contract. This
                                contract does not participate in our profits or
                                surplus.

  Modification of Contract      We may modify this contract in order to maintain
                                compliance with state and federal law. This
                                contract may be changed or altered only by our
                                President or our Secretary. A change or
                                alteration must be made in writing.

  Income Date                   The Income Date must fall on the first day of
                                the calendar month. The earliest Income Date
                                that you can select is two years after the Issue
                                Date. The latest Income Date that you can select
                                is the later of the first day of the first
                                calendar month following the Annuitant's 90th
                                birthday or ten years from the Issue Date. The
                                Income Date will not be later than what is
                                permitted by applicable state or federal law.
                                You have the right to select the Income Date at
                                contract issue. Unless you select a different
                                Income Date, the Income Date shown on the
                                Contract Schedule is the latest Income Date
                                allowed for your contract. In order for Annuity
                                Payments to begin, you must make an Authorized
                                Request.

                                You can make an Authorized Request for a
                                different Income Date after the Issue Date. Any
                                such request is subject to our approval.

L40529                                   16
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                         GENERAL PROVISIONS (continued)
--------------------------------------------------------------------------------

  Taxes                         Taxes paid to any governmental entity will
                                result in an amount equivalent to the tax being
                                charged against the Contract Value. We will, in
                                our sole discretion, determine whether taxes
                                have resulted from the investment experience of
                                the Variable Account, our receipt of the
                                Purchase Payment(s), or commencement of Annuity
                                Payments. We may, at our discretion, pay taxes
                                when due and deduct that amount from the
                                Contract Value at a later date. This will not
                                waive any right we may have to deduct previously
                                paid amounts at a later date.

                                We reserve the right to establish a provision
                                for federal income taxes if we determine, in our
                                sole discretion, that we will incur such tax as
                                a result of the operation of the Variable
                                Account. We will deduct for any income taxes
                                incurred as a result of the operation of the
                                Variable Account whether or not there was a
                                provision for taxes and whether or not it was
                                sufficient.

                                We will deduct any withholding taxes from any
                                payment we make, as required by applicable law.

  Protection of Proceeds        No Beneficiary may commute, encumber, alienate
                                or assign any payment under this contract before
                                it is due. To the extent permitted by law, no
                                payment will be subject to the debts, contracts
                                or engagements of any Beneficiary or to any
                                judicial process to levy upon or attach the same
                                for payment thereof.

  Evidence of Survival          Where any benefits under this contract are
                                contingent upon a person being alive on a given
                                date, we may require proof satisfactory to us
                                that the condition has been met.

 Conditions for Termination     The contract will terminate when:
 of the Contract                (a)     the Accumulation Portion terminates; and
                                (b)     all Annuity Portions terminate; and
                                (c)     all applicable death benefit payments
                                        have been made.

L40529                                   17
<PAGE>
                 ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
                            [5701 Golden Hills Drive]
                          [Minneapolis, MN 55416-1297]








            INDIVIDUAL FLEXIBLE PURCHASE PAYMENT VARIABLE DEFERRED ANNUITY
                                   NON-PARTICIPATING

L40529