File Nos.   333-06709
                                                                811-05618
==============================================================================

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                   FORM N-4

REGISTRATION  STATEMENT UNDER THE SECURITIES ACT OF 1933                   (X)
            Pre-Effective  Amendment No.                                   ( )
            Post-Effective  Amendment No. 24                               (X)

REGISTRATION  STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940           (X)
            Amendment  No. 133                                             (X)

                      (Check appropriate box or boxes.)

     ALLIANZ  LIFE  VARIABLE  ACCOUNT  B
     -------------------------------
        (Exact  Name  of  Registrant)

     ALLIANZ  LIFE  INSURANCE  COMPANY  OF  NORTH  AMERICA
     -----------------------------------------------
        (Name  of  Depositor)


     5701 Golden Hills Drive,  Minneapolis,  MN                           55416
     -------------------------------------------                         -----
     (Address  of  Depositor's  Principal  Executive  Offices)      (Zip Code)

Depositor's  Telephone  Number,  including  Area  Code    (612)  347-6596

     Name  and  Address  of  Agent  for  Service
     -------------------------------------
          Stewart D. Gregg
          Allianz  Life  Insurance  Company  of  North  America
          5701 Golden Hills Drive
          Minneapolis,  MN    55416
          (763)765-2913


It is proposed that this filing will become effective:

     _____  immediately  upon filing pursuant to paragraph (b) of Rule 485
     _____  on (date)  pursuant to paragraph (b) of Rule 485
     __X__  60 days after filing pursuant  to  paragraph  (a)(1)  of Rule 485
     _____  on  (date)  pursuant  to paragraph (a)(1) of Rule 485

If appropriate, check the following:

     ____   this post-effective  amendment designates a new effective date for a
            previously filed post-effective amendment.

Title of Securities Registered:

     Individual Deferred Variable Annuity Contracts



<PAGE>
                               PART A - PROSPECTUS






                  THE VALUEMARK(R) IV VARIABLE ANNUITY CONTRACT

                                    issued by

                         ALLIANZ LIFE VARIABLE ACCOUNT B

                                       and

                 ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA



This prospectus  describes a variable deferred annuity contract (the "Contract")
issued by Allianz Life Insurance  Company of North America (Allianz Life, we, or
us).

For your  convenience  we have  provided a glossary  (see the Table of Contents)
that defines key, capitalized terms that are used in this prospectus.

You can allocate  your Purchase  Payments to the  Investment  Choices  available
under your Contract.  The  Investment  Choices  include the variable  Investment
Options  listed  below  and any  available  Fixed  Account  Investment  Choices.
However,  the Contract  currently  does not offer any Fixed  Account  Investment
Choices.  One or more of the  Investment  Choices may not be  available  in your
state. You can select up to ten Investment  Options.  We may add,  substitute or
remove Investment Choices in the future.

AIM
USAZ AIM Basic Value Fund
USAZ AIM Blue Chip Fund
USAZ AIM Dent Demographic Trends Fund
USAZ AIM International Equity Fund

ALLIANCE CAPITAL
USAZ Alliance Capital Growth and Income Fund
USAZ Alliance Capital Large Cap Growth Fund
USAZ Alliance Capital Technology Fund

DAVIS
Davis VA Financial Portfolio
Davis VA Value Portfolio

DReyFus
Dreyfus Small Cap Stock Index Fund
Dreyfus Stock Index Fund

FRANKLIN TEMPLETON
Franklin Global Communications Securities Fund
Franklin Growth and Income Securities Fund
Franklin High Income Fund
Franklin Income Securities Fund
Franklin Large Cap Growth Securities Fund
Franklin Real Estate Fund
Franklin Rising Dividends Securities Fund
Franklin Small Cap Fund
Franklin Small Cap Value Securities Fund*
Franklin U.S. Government Fund
Franklin Zero Coupon Fund 2005
Franklin Zero Coupon Fund 2010
Mutual Discovery Securities Fund
Mutual Shares Securities Fund
Templeton Developing Markets Securities Fund
Templeton Foreign Securities Fund*
Templeton Growth Securities Fund
USAZ Templeton Developed Markets Fund

Jennison
Jennison 20/20 Focus Portfolio
SP Jennison International Growth Portfolio
SP Strategic Partners Focused Growth Portfolio

OPPENHEIMER
Oppenheimer Global Securities Fund/VA
Oppenheimer High Income Fund/VA
Oppenheimer Main Street Growth & Income Fund/VA
USAZ Oppenheimer Emerging Growth Fund

PIMCO
PIMCO VIT High Yield Portfolio
PIMCO VIT StocksPLUS Growth and Income Portfolio
PIMCO VIT Total Return Portfolio
USAZ PIMCO Growth and Income Fund
USAZ PIMCO Renaissance Fund
USAZ PIMCO Value Fund

SELIGMAN
Seligman Small-Cap Value Portfolio

USAZ
USAZ Money Market Fund

VAN KAMPEN
USAZ Van Kampen Aggressive Growth Fund
USAZ Van Kampen Comstock Fund
USAZ Van Kampen Emerging Growth Fund
USAZ Van Kampen Growth and Income Fund
USAZ Van Kampen Growth Fund

The Securities and Exchange Commission has not approved or disapproved these
securities or determined if this prospectus is truthful or complete. Any
representation to the contrary is a criminal offense.


Please read this prospectus before investing and keep it for future reference.
It contains important information about the Contract.

To learn more about the annuity offered by this prospectus, you can obtain a
copy of the Statement of Additional Information (SAI) dated May 1, 2003. The SAI
has been filed with the Securities and Exchange Commission (SEC) and is legally
a part of this prospectus. The Table of Contents of the SAI is on page 37 of
this prospectus. The SEC maintains a Web site (http://www.sec.gov) that contains
the SAI, material incorporated by reference and other information about
companies that file electronically with the SEC. For a free copy of the SAI,
call us at 1-800-542-5427 or write us at: 5701 Golden Hills Drive, Minneapolis,
Minnesota 55416-1297.

The Contracts involve certain risks, and you may lose money.  The Contracts:
o are not bank deposits
o are not federally insured
o are not endorsed by any bank or government agency
o are not guaranteed and may be subject to loss of   principal


This prospectus is not an offering of the securities in any state, country, or
jurisdiction in which we are not authorized to sell the Contracts. You should
rely only on the information contained in this prospectus or that we have
referred you to. We have not authorized anyone to provide you with information
that is different.


Dated: May 1, 2003




<PAGE>




TABLE OF CONTENTS

Index of Terms                                            4


Summary                                                   5

Fee Table                                                 7

1.   The Variable Annuity Contract 14 Ownership 18
        Contract Owner                                   14
        Joint Owner                                      14
        Annuitant                                        14
        Beneficiary                                      14
        Assignment                                       15

2. Annuity Payments
   (The Payout Phase)                                    15
     Income Date                                         19
     Annuity Payments                                    19
     Annuity Options                                     19
     Guaranteed Minimum Income Benefits (GMIBs)
-        Annuity Income Protection
       Traditional Guaranteed Minimum Income
     Benefit (Traditional GMIB) - New Contracts Only Guaranteed Minimum Income
     Benefit Option 1 (GMIB Option 1) - Old Contracts Only Guaranteed Minimum
     Income Benefit Option 2 (GMIB Option 2) - Old Contracts Only



3. Purchase                                              17
    Purchase Payments                                    17
    Automatic Investment Plan                            18
    Allocation of Purchase Payments                      18
    Tax-Free Section 1035 Exchanges                      18
    Faxed Applications                                   18
    Free Look                                            18
    Accumulation Units                                   19

4.  Investment Options 19 Substitution and Limitation on
      Further Investments                                24
    Transfers                                            25
    Dollar Cost Averaging Program                        26
    Financial Advisers - Asset
      Allocation Programs                                31
    Flexible Rebalancing                                 26
    Voting Privileges                                    26
    Substitution                                         27

5.  Fixed Account 31

6.  Expenses 27 Separate Account Expenses 27
      Mortality and Expense Risk Charge                  27
      Administrative Charge                              27
    Contract Maintenance Charge                          27
    Contingent Deferred Sales Charge                     28
    Partial Withdrawal Privilege                         28
    Waiver of Contingent Deferred
        Sales Charge Benefits                            28
    Reduction or Elimination of the
        Contingent Deferred Sales Charge                 28
    Transfer Fee                                         29
    Premium Taxes                                        29
    Income Taxes                                         29
    Investment Option Expenses                           29

7. Taxes                                                 29
    Annuity Contracts in General                         29
    Qualified and Non-Qualified Contracts                29
    Multiple Contracts                                   30
    Withdrawals - Non-Qualified Contracts                30
    Withdrawals - Qualified Contracts                    30
    Withdrawals - Tax-Sheltered Annuities                31
    Death Benefits                                       31
    Diversification                                      31

8. Access to Your Money                                  31
    Systematic Withdrawal Program                        32
    Minimum Distribution Program                         32
    Suspension of Payments or Transfers                  32

9.  Performance and Illustrations 32

10. Death Benefit 33 Upon Your Death 33
                                                         40
    Traditional Guaranteed Minimum Death Benefit
       (Traditional GMDB) - New Contracts Only           40
    Enhanced Guaranteed Minimum Death Benefit
       (Enhanced GMDB) - New Contracts Only              40
    Earnings Protection Guaranteed Minimum Death
       Benefit (EP GMDB) - New Contracts Only            40
    Death Benefit Option 1 (DB Option 1)
       - Old Contracts Only                              40
    Death Benefit Option 2 (DB Option 2)
         - Old Contracts Only
    Death Benefit Examples
    Death Benefit Options                                41
    Death of Annuitant                                   35

11. Other Information                                    35
    Allianz Life                                         35
    The Separate Account                                 35
    Distribution                                         36
    Additional Credits for Certain Groups                36
    Administration                                       36
    Financial Statements                                 36

12. Glossary 43

13. Table of Contents of the
Statement of Additional Information 43

14. Privacy Notice 44

    Appendix A - Condensed Financial

    Information                                          51




<PAGE>



SUMMARY
--------------------------------------------------------------------------------


The sections in this summary  correspond  to sections in this  prospectus  which
discuss the topics in more detail.


THE VARIABLE  ANNUITY  CONTRACT:  The annuity  Contract  offered by Allianz Life
provides a means for investing on a  tax-deferred  basis in Investment  Choices.
The Contract is intended for retirement  savings or other  long-term  investment
purposes.  You can  purchase the  contract as a  Non-Qualified  Contract or as a
Qualified  Contract.  The Contract  provides several  different  Annuity Payment
options that you can choose from.

This  prospectus  offers both "New  Contracts" and "Old  Contracts." The product
features  and  expenses of New  Contracts  and Old  Contracts  differ in certain
respects, as set out in this prospectus. Only one type of Contract is offered in
each state.

The basic death benefit for New Contracts is the Traditional  Guaranteed Minimum
Death Benefit  (Traditional  GMDB),  which guarantees a minimum death benefit of
total Purchase Payments adjusted for partial  withdrawals.  If all owners are 79
or younger at Contract  issue,  you may instead  select the Enhanced  Guaranteed
Minimum Death Benefit (Enhanced GMDB) for an additional charge.The Enhanced GMDB
guarantees a minimum  death  benefit of the greater of: (a) the Annual  Increase
Amount prior to any owner's 81st birthday,  or (b) the Maximum Anniversary Value
(MAV) on each Contract  anniversary  prior to any owner's 81st  birthday.  These
amounts are adjusted for subsequent partial  withdrawals and subsequent Purchase
Payments.

If you  have an Old  Contract  that  does  not have an  Enhanced  Death  Benefit
Endorsement (EDB Endorsement), your death benefit will be based on your Contract
value.


If you have an Old Contract with an EDB Endorsement,  you can select from one of
three  death  benefit  options  subject to certain  age  restrictions  and state
availability. The three death benefits are Death Benefit Option 1 (DB Option 1),
Death Benefit Option 2 (DB Option 2) and the EP GMDB.


DB Option 1 guarantees a minimum  death benefit of the greater of: a) the Annual
Increase  Amount prior to any owner's 81st birthday,  or b) the Six-Year Step Up
prior to any owner's 81st  birthday.  These amounts are adjusted for  subsequent
partial withdrawals and subsequent Purchase Payments.

DB Option 2  guarantees  a minimum  death  benefit of the  greater  of: a) total
Purchase  Payments  adjusted  for  partial   withdrawals,   or  b)  the  Maximum
Anniversary Value (MAV) prior to any owner's 81st birthday.  The MAV is adjusted
for subsequent partial withdrawals and subsequent Purchase Payments.

If you have an Old Contract with an EDB Endorsement and any owner is 79 or older
at Contract issue the death benefit under DB Option 1 or DB Option 2 will be
based on the greater of: a) total Purchase Payments less withdrawals, or b)
Contract value.

The Earnings Protection  Guaranteed Minimum Death Benefit (EP GMDB) is available
for an  additional  charge on both Old and New Contracts if all owners are 75 or
younger at Contract issue.  The EP GMDB may provide an additional  death benefit
amount based on your Contract performance or Purchase Payments.

You may purchase only one death benefit. The death benefits are described in
more detail in section 10. Death Benefits.

New  Contracts  provide  the  Traditional  GMIB as an  optional  benefit  for an
additional charge. Traditional GMIB Annuity Payments are based on total Purchase
Payments adjusted for partial withdrawals.  Old Contracts provide two Guaranteed
Minimum Income Benefit (GMIB) options for an additional charge if all owners are
75 or younger at Contract  issue.  GMIB Option 1 is only  available  if you also
select DB Option 1 or the EP GMDB.  GMIB Option 2 is only  available if you also
select DB Option 2 or the EP GMDB The GMIBs  guarantee a minimum level of income
through Annuity  Payments after the seventh Contract year. You may only purchase
one GMIB.

GMIB  Option 1 Annuity  Payments  are  based on the  greater  of: a) the  Annual
Increase  Amount prior to any owner's 81st birthday,  or b) the Six-Year Step Up
prior to any owner's 81st  birthday.  These amounts are adjusted for  subsequent
partial withdrawals and subsequent Purchase Payments.

GMIB Option 2 Annuity  Payments  are based on the greater of: a) total  Purchase
Payments adjusted for partial  withdrawals,  or b) the Maximum Anniversary Value
(MAV) prior to any owner's 81st  birthday.  The MAV is adjusted  for  subsequent
partial withdrawals and subsequent Purchase Payments.

The GMIBs and the  Annuity  Options are  described  in more detail in section 2.
Annuity Payments (The Payout Phase).

Certain  GMIB and GMDB  benefits may be limited  after age 81. As a result,  any
Contract  Owner who is age 75 or older at Contract  issue  should  determine  if
purchasing a benefit for which there is an additional  cost is  appropriate  for
their situation.


The guaranteed  benefits  listed above may not be available in all states.  Once
you elect one of these  guaranteed  benefit  options you cannot change it. Check
with your registered representative regarding the availability of these features
in your state.

The Contract may be used as a funding vehicle for  asset-based fee  arrangements
offered by brokerage firms or their associated  investment advisory firms. There
may be fees and charges assessed by these firms for their asset-based  programs.
These fees and charges would be in addition to the charges and other  deductions
we describe elsewhere in this prospectus. Your registered representative will be
able to describe  the fees  assessed  in  connection  with any such  asset-based
programs.

We  currently  do not permit  Contract  owners to borrow money from us using the
Contract as security for the loan.

Some Contract features may not be available in all states.


ANNUITY PAYMENTS: The Income Date is the date you begin receiving Annuity
Payments. You generally can elect to receive your Annuity Payments as a variable
payout, a fixed payout, or a combination of both under a variety of Annuity
Options. If you choose to receive any part of your Annuity Payments as a
variable payout, the dollar amount of your payments will go up or down based on
the performance of the Investment Options. See section 2. Annuity Payments (The
Payout Phase).

PURCHASE: You can buy the Contract with $5,000 or more under most circumstances.
You can add $250 or more any time you like during the Accumulation Phase. In
some states, additional Purchase Payments may be restricted to the first
Contract year. See Section 3 - "Purchase - Allocation of Purchase Payments."

INVESTMENT  CHOICES:  You can put your money in the Investment Choices available
under your  Contract.  The Contract does not  currently  offer any Fixed Account
Investment  Choices.  The investment  returns on the Investment  Options are not
guaranteed.  You can lose  money.  You can  make  transfers  between  Investment
Choices as permitted. See section 4. Investment Options - Transfers.


EXPENSES: The Contract has insurance features and investment features, and there
are costs related to each.


Each year, we deduct a $30 contract  maintenance  charge from your Contract.  We
currently waives this charge if the value of your Contract is at least $50,000.

We deduct a mortality and expense risk charge during the Accumulation Phase that
varies depending upon the benefits you choose.  We also deduct an administrative
charge  that is equal on an annual  basis to 0.15% of the value of the  Contract
invested in an Investment  Option. We deduct this charge during the Accumulation
Payout Phase.  The table below shows the benefit  combinations  available to you
and their total Separate  Account  expenses during the  Accumulation  Phase. The
charges  are  calculated  as a  percentage  of the  average  daily  value of the
Contract Value invested in the Investment Options.


Separate Account Annual Expenses:*

<TABLE>
<CAPTION>
<S>                                             <C>                             <C>


For New Contracts:                              Contracts without a GMIB        Contracts with a GMIB
------------------                              ------------------------        ---------------------
     Traditional GMDB                                     1.75%                       1.90%
     Enhanced GMDB                                        2.05%                       2.15%
     EP GMDB                                              2.05%                       2.20%


For Old Contracts:                              Contracts without a GMIB        Contracts with a GMIB
------------------                              ------------------------        ---------------------
     Without the  EDB Endorsement                         1.49%                       1.79%
        DB Option 1 or
        DB Option 2                                       1.49%                       1.79%
     EP GMDB                                              1.59%                       1.89%

</TABLE>



*Some or all of the guaranteed benefits may not be available in all states.

During the Payout Phase, the total Separate Account annual expenses are equal on
an  annual  basis  to  1.40%  for Old  Contracts  and  1.75%  for New  Contracts
regardless of the options selected.

If you take money out of the Contract, we may assess a contingent deferred sales
charge against each Purchase Payment  withdrawn.  The contingent  deferred sales
charge  starts at 6% in the first  year and  declines  to 0% after we have had a
Purchase Payment for seven complete years.

You can make 12 free  transfers  each year.  After that, we deduct $25, or 2% of
the amount transferred, whichever is less, for each additional transfer.



Allianz  Life is  responsible  for paying any  premium and other  similar  taxes
assessed  by states  and other  governmental  entities  (e.g.,  municipalities).
Premium  taxes  typically  range  from  0% to 3.5% of the  Purchase  Payment  or
Contract value,  depending on the state or governmental entity. When applicable,
we currently  withhold  premium tax charges when you die, when Annuity  Payments
begin, or when you make a complete  withdrawal,  whichever comes first.  Allianz
Life reserves the right to change this practice in the future.


Each Investment Option deducts  portfolio  management fees and expenses from the
amounts you have invested in the Investment  Options.  Some  Investment  Options
also deduct 12b-1 fees from  Investment  Option assets.  For 2002 these expenses
and fees ranged on an annual basis, from ___% to ___% of an Investment  Option's
average daily net assets before expense reimbursements or fee waivers.

We will pay sales  commissions to broker/dealers  who sell the Contracts.  For a
discussion  of  these   arrangements,   see  section  11.  Other  Information  -
Distribution.

For more details on the expenses  associated with this Contract,  see section 6.
Expenses.


TAXES:  Your  earnings are  generally  not taxed until you take them out. If you
take money out during the  Accumulation  Phase,  earnings come out first and are
taxed as income.  If you are younger than 59 1/2when you take money out, you may
be charged a 10% federal tax penalty.  Other tax rules and limitations may apply
to Qualified Contracts. See section 7. Taxes.

ACCESS  TO YOUR  MONEY:  You can take  money  out of your  Contract  during  the
Accumulation Phase.  Withdrawals during the Accumulation Phase may be subject to
a contingent  deferred  sales charge.  You may also have to pay income tax and a
tax  penalty  on any  money you take out.  Limits  on  withdrawals  may apply to
certain Qualified Contracts. See section 8. Access to Your Money.

DEATH  BENEFIT:  If you die before moving to the Payout Phase,  the  Beneficiary
will receive a death  benefit.  The amount of the death  benefit  depends on the
death benefit that applies. See section 10. Death Benefit.

FREE-LOOK:  You can cancel the  Contract  within 10 days after  receiving it (or
whatever  period is  required in your  state).  We will refund the value of your
Contract on the day it receives your request to cancel the Contract. This may be
more or less than your  original  payment.  In  certain  states,  or if you have
purchased  the  Contract  as an IRA, we will refund the  Purchase  Payment.  See
section 3. Purchase - Free Look.


PRIVACY  POLICY:  We  place  a high  priority  on  maintaining  your  trust  and
confidence.  A notice of the privacy  policy  followed  by Allianz  Life and its
affiliated   companies   is  provided  in  this   prospectus   to  enhance  your
understanding of how we protect your privacy when we collect and use information
about you, and the steps we take to  safeguard  that  information.  See "Privacy
Notice."

INQUIRIES:

If you have any questions about your Contract or need more  information,  please
contact us at:
USAllianz Service Center 300 Berwyn Park
P.O. Box 3031 Berwyn, PA
19312-0031
1-800-624-0197



<PAGE>



FEE TABLE
--------------------------------------------------------------------------------


The purpose of this Fee Table is to help you  understand the costs of investing,
directly or indirectly,  in the Contract.  It reflects  expenses of the Separate
Account as well as the Investment Options.  Taxes, including premium tax charges
also may apply, although they do not appear in the table.

CONTRACT OWNER TRANSACTION FEES


Contingent Deferred Sales Charge(1, 2)
(as a percentage of each Purchase Payment withdrawn)
                             Complete Years Since
                               Purchase Payment   Charge
-----------------------------------------------------------------------------
                                      0-1           6%
                                      1-2           6%
                                      2-3           6%
                                      3-4           5%
                                      4-5           4%
                                      5-6           3%
                                      6-7           2%
                                      7 +           0%

Transfer                                            Fee The first 12 transfers
                                                    in a Contract year are free.
                                                    Thereafter, the fee is
                                                    lesser of $25 or 2% of the
                                                    amount transferred.
                                                    Transfers from the Fixed
                                                    Account Investment Choices
                                                    may be subject to a Market
                                                    Value Adjustment (MVA) which
                                                    may increase or decrease the
                                                    amount transferred. Dollar
                                                    Cost Averaging transfers and
                                                    Flexible Rebalancing
                                                    transfers are not counted
                                                    against the free transfers
                                                    we allow.


Contract Maintenance Charge(3)                      $30 per Contract per year





<TABLE>
<CAPTION>

Separate Account Annual Expenses(4)
(as a percentage of average account value)
<S>                           <C>                              <C>              <C>

                              Contracts without a GMIB         Contracts with a GMIB
                               M&E      Admin.               M&E      Admin.
For New Contracts:           Charge     Charge     Total    Charge    Charge     Total
------------------           ------     ------     -----    ------    ------     -----
     Traditional GMDB         1.60%      0.15%     1.75%    1.75%      0.15%     1.90%
     Enhanced GMDB            1.90%      0.15%     2.05%    2.00%      0.15%     2.15%
     EP GMDB                  1.90%      0.15%     2.05%    2.05%      0.15%     2.20%


                              Contracts without a GMIB         Contracts with a GMIB
                               M&E      Admin.               M&E      Admin.
For Old Contracts:           Charge     Charge     Total    Charge    Charge     Total
------------------           ------     ------     -----    ------    ------     -----
     With the EDB             1.34%      0.15%     1.49%    1.64%      0.15%     1.79%
     Endorsement

     DB Option 1 or
     DB Option 2              1.34%      0.15%     1.49%    1.64%      0.15%     1.79%
     EP GMDB                  1.44%      0.15%     1.59%    1.74%      0.15%     1.89%
</TABLE>


During the Payout Phase, the total Separate Account annual expenses are equal on
an  annual  basis  to  1.40%  for Old  Contracts  and  1.75%  for New  Contracts
regardless of the options selected.



(1)  If  you  selected  a  Fixed  Account  Investment  Choice,  a  Market  Value
     Adjustment  may apply to certain  transactions.  This MVA may  increase  or
     decrease  your  Contract  value  and/or  the amount of your  withdrawal  or
     transfer.

(2)  After the first Contract year, you may make multiple partial withdrawals of
     up to a total  of 15% of your  Contract  value  each  year  and we will not
     assess  a  contingent   deferred  sales  charge.  This  partial  withdrawal
     privilege  is  non-cumulative,  which means that if you do not use your 15%
     free  privilege  in a given year,  it does not carry over to the next year.
     See section 8. Access to Your Money for additional options.

(3)  During the  Accumulation  Phase,  the charge is waived if the your Contract
     value is at least $50,000.  If you own more than one Contract offered under
     this prospectus  (registered with the same social security number), we will
     determine the total value of all your Contracts.  If the total value of all
     your Contracts is at least  $50,000,  the charge is waived on all Contracts
     (except in New  Jersey).  Currently,  the charge is also waived  during the
     Payout  Phase if the your  Contract  value on the  Income  Date is at least
     $50,000 (except in New Jersey).





<PAGE>


INVESTMENT OPTION ANNUAL EXPENSES net of waivers/reimbursements

(as a percentage of an Investment Option's average daily net assets for the most
recent fiscal year.) See the Investment Option prospectuses for more
information.*
<TABLE>
<CAPTION>


<S>                                              <C>                  <C>               <C>            <C>

                                                  Management           12b-1               Other        Total Investment
Investment Option                                    Fees              Fees**            Expenses        Option Expenses
------------------------------------------------------------------------------------------------------------------------------------
USAZ AIM Basic Value Fund1                             .75%            .25%                .10%               1.10%
------------------------------------------------------------------------------------------------------------------------------------
USAZ AIM Blue Chip Fund1                               .80%            .25%                .10%               1.15%
------------------------------------------------------------------------------------------------------------------------------------
USAZ AIM Dent Demographic Trends Fund1                 .85%            .25%                .10%               1.20%
USAZ AIM International Equity Fund1                    .90%            .25%                .10%               1.25%
USAZ Alliance Capital Growth and Income Fund1          .85%            .25%                 --                1.10%
------------------------------------------------------------------------------------------------------------------------------------
USAZ Alliance Capital Large Cap Growth Fund1           .85%            .25%                 --                1.10%
USAZ Alliance Capital Technology Fund1                1.00%            .25%                 --                1.25%
Davis VA Financial Portfolio2                          .75%             --                 .25%               1.00%
------------------------------------------------------------------------------------------------------------------------------------
Davis VA Value Portfolio                               .75%             --                 .12%                .87%
Dreyfus Small Cap Stock Index Fund - Service Shares1   .35%            .25%                 --                 .60%
------------------------------------------------------------------------------------------------------------------------------------
Dreyfus Stock Index Fund - Service Shares              .25%            .25%                .07%                .57%
------------------------------------------------------------------------------------------------------------------------------------
Franklin Global Communications Securities Fund - Class 14.52%           --                 .03%                .55%
------------------------------------------------------------------------------------------------------------------------------------
Franklin Growth and Income Securities Fund - Class 14  .48%             --                 .03%                .51%
Franklin High Income Fund - Class 14                   .57%             --                 .05%                .62%
Franklin Income Securities Fund - Class 14             .49%             --                 .04%                .53%
Franklin Large Cap Growth Securities Fund - Class14    .75%             --                 .03%                .78%
Franklin Real Estate Fund - Class 14                   .56%             --                 .03%                .59%
Franklin Rising Dividends Securities Fund - Class 14/5 .74%             --                 .02%                .76%
Franklin Small Cap Fund - Class 15                     .45%             --                 .31%                .76%
Franklin Small Cap Value Securities Fund - Class 15    .57%             --                 .20%                .77%
Franklin U.S. Government Fund - Class 14               .51%             --                 .02%                .53%
Franklin Zero Coupon Fund 2005 - Class 14              .63%             --                 .05%                .68%
Franklin Zero Coupon Fund 2010 - Class 14              .63%             --                 .05%                .68%
Mutual Discovery Securities Fund - Class 1             .80%             --                 .22%               1.02%
Mutual Shares Securities Fund - Class 1                .60%             --                 .19%                .79%
Templeton Developing Markets Securities Fund - Class 11.25%             --                 .32%               1.57%
Templeton Foreign Securities Fund - Class 15           .68%             --                 .22%                .90%
Templeton Growth Securities Fund - Class 14            .80%             --                 .05%                .85%
USAZ Templeton Developed Markets Fund1                 .88%            .25%                .12%               1.25%
------------------------------------------------------------------------------------------------------------------------------------
Jennison 20/20 Focus Portfolio - Class 21               75%            .25%                .33%               1.33%
SP Jennison International Growth Portfolio - Class 26  .85%            .25%                .54%               1.64%
SP Strategic Partners Focused Growth Portfolio - Class 26.90%          .25%                .26%               1.41%
Oppenheimer Global Securities Fund/VA                  .64%             --                 .06%                .70%
------------------------------------------------------------------------------------------------------------------------------------
Oppenheimer High Income Fund/VA                        .74%             --                 .05%                .79%
Oppenheimer Main Street Growth & Income Fund/VA        .68%             --                 .05%                .73%
USAZ Oppenheimer Emerging Growth Fund1                 .85%            .25%                .15%               1.25%
------------------------------------------------------------------------------------------------------------------------------------
PIMCO VIT High Yield Portfolio - Admin. Class7         .25%             --                 .50%                .75%
------------------------------------------------------------------------------------------------------------------------------------
PIMCO VIT StocksPLUS Growth and  Income Portfolio - Admin. Class 7    .40%                   --                .27%        .67%
PIMCO VIT Total Return Portfolio- Admin. Class 7       .25%             --                 .40%                .65%
USAZ PIMCO Growth and Income Fund1                     .75%            .25%                .10%               1.10%
------------------------------------------------------------------------------------------------------------------------------------
USAZ PIMCO Renaissance Fund1                           .75%            .25%                .10%               1.10%
USAZ PIMCO Value Fund1                                 .75%            .25%                .10%               1.10%
Seligman Small-Cap Value Portfolio - Class 18         1.00%             --                 .19%               1.19%
------------------------------------------------------------------------------------------------------------------------------------
USAZ Money Market Fund1                                .35%            .25%                .30%                .90%
------------------------------------------------------------------------------------------------------------------------------------
USAZ  Van Kampen Aggressive Growth Fund1               .80%            .25%                .20%               1.25%
USAZ Van Kampen Comstock Fund1                         .68%            .25%                .27%               1.20%
USAZ Van Kampen Emerging Growth Fund1                  .75%            .25%              .10%                 1.10%
USAZ Van Kampen Growth and Income Fund1                .68%            .25%                .17%               1.10%
USAZ Van Kampen Growth Fund1                           .75%            .25%                .20%               1.20%
</TABLE>



*The fee and expense  information  regarding the Investment Options was provided
by the  investment  advisers,  and  we  have  not  independently  verified  such
information.  Some of the Investment Options may pay service fees, which vary by
Investment  Option.  Except  for the USAZ  Funds and the  PIMCO  VIT  Investment
Options,  neither the Investment  Options nor their Advisers are affiliated with
Allianz Life.


**The 12b-1 fees cover certain  distribution  and shareholder  support  services
provided  by  the  companies  selling  Contracts.   Our  principal  underwriter,
USAllianz Investor Services, LLC will receive 12b-1 fees.

1.   The USAZ AIM  Basic  Value  Fund,  USAZ AIM Blue Chip  Fund,  USAZ AIM Dent
     Demographic Trends Fund, USAZ AIM International  Equity Fund, Dreyfus Small
     Cap  Stock  Index  Fund,  Jennison  20/20  Focus  Portfolio  and  the  USAZ
     Oppenheimer  Emerging  Growth Fund commenced  operations as of May 1, 2002.
     The  expenses  shown  above  for these  Investment  Options  are  therefore
     estimated for the Investment  Option's  current  fiscal year.  Certain USAZ
     Fund  expenses  will be assumed by the Adviser and an annual  expense limit
     has been  designated  by the Adviser for each  Investment  Option  which is
     reflected in the total expense  amount  listed in the table above.  Without
     reimbursement,  total  Investment  Option  expenses  would be  estimated as
     follows: USAZ Alliance Capital Growth and Income Fund, 3.28%, USAZ Alliance
     Capital  Large Cap Growth Fund,  3.36%,  USAZ Alliance  Capital  Technology
     Fund,  3.19%,  USAZ Templeton  Developed  Markets Fund,  3.56%,  USAZ PIMCO
     Growth and Income Fund,  3.70%,  USAZ PIMCO  Renaissance  Fund, 2.96%, USAZ
     PIMCO Value Fund,  3.43%,  USAZ Money Market Fund,  1.21%,  USAZ Van Kampen
     Aggressive  Growth Fund,  7.59%, USAZ Van Kampen Comstock Fund, 3.01%, USAZ
     Van Kampen Emerging Growth Fund,  3.81%,  USAZ Van Kampen Growth and Income
     Fund, 2.71%, and the USAZ Van Kampen Growth Fund, 4.46%.

2.   Without  reimbursement,  other expenses and total operating  expenses would
     have  been  0.29%  and  1.04%,  respectively  for the  Davis  VA  Financial
     Portfolio.

3.   For  the  Investment  Options  of  Franklin  Templeton  Variable  Insurance
     Products Trust,  Class 2 shares have a distribution  plan which is referred
     to as a rule  12b-1  plan.  See "Fund  Account  Policies"  in the  Franklin
     Templeton Variable Insurance Products Trust prospectus for more information
     about the rule 12b-1 plan.

4.   The Investment  Option  administration  fee is paid indirectly  through the
     management fee.

5.   For the Franklin Rising  Dividends,  Franklin Small Cap, Franklin Small Cap
     Value Securities and Templeton Foreign  Securities Funds, the managers have
     agreed in advance to make estimated  reductions of 0.01%,  0.08%, 0.03% and
     0.01%,  respectively,  in their fees to reflect reduced services  resulting
     from the Investment Options' investment in a Franklin Templeton money fund.
     The managers are required by the Investment  Options' Board of Trustees and
     an order of the Securities and Exchange  Commission to reduce their fees if
     the Investment  Options invest in a Franklin  Templeton money fund. Without
     these reductions,  the total annual Investment  Options' operating expenses
     are estimated to be 0.77%, 0.84%, 0.80% and 0.91%, respectively.

6.   Without  reimbursement,  total operating expenses would have been 2.26% and
     3.01%,  respectively  for  the  SP  Jennison  International  Growth  and SP
     Strategic  Partners Focused Growth  Portfolios.  These  reimbursements  are
     voluntary and may be terminated at any time.

7.   "Other Expenses" without  reimbursement reflect a 0.35% administrative fee,
     a 0.15% service fee and 0.01%  representing pro rata Trustees' Fees for the
     PIMCO VIT High Yield Portfolio; a 0.10% administrative fee, a 0.15% service
     fee and 0.02%  interest  expense  for the PIMCO VIT  StocksPLUS  Growth and
     Income Portfolio;  and a 0.25%  administrative fee, a 0.15% service fee and
     0.01%  representing  pro rata Trustees' fees for the PIMCO VIT Total Return
     Portfolio. PIMCO has contractually agreed to reduce total annual Investment
     Option  operating  expenses  to the extent  they would  exceed,  due to the
     payment of  organizational  expenses and Trustees' fees,  0.75%,  0.65% and
     0.65%,  respectively,  of  average  daily net assets for the PIMCO VIT High
     Yield,  StocksPLUS Growth and Income and Total Return  Portfolios.  Without
     such  reductions,  Total Annual Expenses for the fiscal year ended December
     31, 2001 would have been 0.76%,  0.67% and 0.66%,  respectively.  Under the
     Expense   Limitation   Agreement,   PIMCO  may  recoup  these  waivers  and
     reimbursements in future periods, not exceeding three years, provided total
     expenses,  including  such  recoupment,  do not exceed  the annual  expense
     limit.  Ratio of net  expenses  to average  net assets  excluding  interest
     expense is 0.65% for the StocksPLUS Growth and Income Portfolio.

8.   Effective  March 1, 2001, J & W. Seligman & Co.  Incorporated  ("Seligman")
     voluntarily  agreed to  reimburse  expenses  of  Seligman  Small-Cap  Value
     Portfolio,  other than management and 12b-1 fees, that exceed 0.20%.  Prior
     to that date, Seligman  reimbursed all expenses,  other than management and
     12b-1 fees.  Without  reimbursement,  other  expenses and total  Investment
     Option expenses would have been 0.22% and 1.22%, respectively.  There is no
     assurance that Seligman will continue this policy in the future.




<PAGE>



EXAMPLES
--------------------------------------------------------------------------------



The expenses for your  Contract may be different  than those shown in the charts
below depending upon which benefits, or combination of benefits apply.


o    The examples  below should not be  considered a  representation  of past or
     future expenses. Actual expenses may be greater or less that those shown.

o    These   examples   assume  that  the  applicable  fee  waiver  and  expense
     reimbursements provided by some of the Investment Options will continue for
     the periods shown.

o    The $30  contract  maintenance  charge is  included  in the  examples  as a
     prorated  charge of $1.  Since the average  Contract  size is greater  than
     $1,000, the contract maintenance charge is reduced accordingly.

o    Premium taxes are not reflected in the tables. Premium taxes may apply.


o        For additional information, see section 6. Expenses.

These charts show the highest and lowest  expenses for New  Contracts.  High and
low expenses, respectively, for Old Contracts if shown, would be lower.



You would pay the  following  expenses  on a $1,000  investment,  assuming  a 5%
annual return on your money if you make a full withdrawal from your New Contract
at the end of each time period with the:

a) EP GMDB and the Traditional  GMIB (with the highest  Separate  Account annual
charges of 2.20%).



Traditional  GMDB with no GMIB (with the lowest Separate  Account annual charges
of 1.75%)


THE TABLE BELOW WILL BE UPDATED UPON AMENDMENT.
<TABLE>
<CAPTION>
<S>                                             <C>              <C>            <C>         <C>
                                                 1 Year           3 Years       5 Years      10 Years
---------------------------------------------------------------------------------------------------------
USAZ AIM Basic Value Fund                        a)   87          a)   138      a)   181     a)   302
                                                 b)   91          b)   150      b)   200     b)   341
---------------------------------------------------------------------------------------------------------
USAZ AIM Blue Chip Fund                          a)   88          a)   140      a)   183     a)   307
                                                 b)   92          b)   151      b)   202     b)   346
---------------------------------------------------------------------------------------------------------
USAZ AIM Dent Demographic Trends Fund            a)   88          a)   141      a)   186     a)   312
                                                 b)   92          b)   152      b)   204     b)   350
---------------------------------------------------------------------------------------------------------
USAZ AIM International Equity Fund               a)   89          a)   143      a)   188     a)   317
                                                 b)   93          b)   154      b)   207     b)   355
---------------------------------------------------------------------------------------------------------
USAZ Alliance Capital Growth and Income Fund     a)   87          a)   138      a)   181     a)   302
                                                 b)   91          b)   150      b)   200     b)   341
---------------------------------------------------------------------------------------------------------
USAZ Alliance Capital Large Cap Growth Fund      a)   87          a)   138      a)   181     a)   302
                                                 b)   91          b)   150      b)   200     b)   341
---------------------------------------------------------------------------------------------------------
USAZ Alliance Capital Technology Fund            a)   89          a)   143      a)   188     a)   317
                                                 b)   93          b)   154      b)   207     b)   355
---------------------------------------------------------------------------------------------------------
Davis VA Financial Portfolio                     a)   86          a)   135      a)   176     a)   293
                                                 b)   90          b)   147      b)   195     b)   331
---------------------------------------------------------------------------------------------------------
Davis VA Value Portfolio                         a)   85          a)   132      a)   170     a)   280
                                                 b)   89          b)   143      b)   189     b)   319
---------------------------------------------------------------------------------------------------------
Dreyfus Small Cap Stock Index Fund               a)   82          a)   124      a)   157     a)   252
                                                 b)   86          b)   135      b)   176     b)   293
---------------------------------------------------------------------------------------------------------
Dreyfus Stock index Fund                         a)   82          a)   123      a)   155     a)   249
                                                 b)   86          b)   135      b)   175     b)   290
---------------------------------------------------------------------------------------------------------
Franklin Global Communications Securities Fund   a)   82          a)   123      a)   154     a)   247
                                                 b)   86          b)   134      b)   174     b)   288
---------------------------------------------------------------------------------------------------------
Franklin Growth and Income Securities Fund       a)   81          a)   121      a)   152     a)   243
                                                 b)   85          b)   133      b)   172     b)   284
---------------------------------------------------------------------------------------------------------
Franklin High Income Fund                        a)   82          a)   125      a)   158     a)   254
                                                 b)   86          b)   136      b)   177     b)   295
---------------------------------------------------------------------------------------------------------
Franklin Income Securities Fund                  a)   82          a)   122      a)   153     a)   245
                                                 b)   86          b)   134      b)   173     b)   286
---------------------------------------------------------------------------------------------------------
Franklin Large Cap Growth Securities Fund        a)   84          a)   129      a)   165     a)   271
                                                 b)   88          b)   141      b)   185     b)   310
---------------------------------------------------------------------------------------------------------
Franklin Real Estate Fund                        a)   82          a)   124      a)   156     a)   251
                                                 b)   86          b)   135      b)   176     b)   292
---------------------------------------------------------------------------------------------------------
Franklin Rising Dividends Securities Fund        a)   84          a)   129      a)   164     a)   268
                                                 b)   88          b)   140      b)   184     b)   308
---------------------------------------------------------------------------------------------------------
Franklin Small Cap Fund                          a)   84          a)   129      a)   164     a)   268
                                                 b)   88          b)   140      b)   184     b)   308
---------------------------------------------------------------------------------------------------------
Franklin Small Cap Value Securities Fund         a)   84          a)   129      a)   165     a)   270
                                                 b)   88          b)   140      b)   184     b)   309
---------------------------------------------------------------------------------------------------------
Franklin U.S. Government Fund                    a)   82          a)   122      a)   153     a)   245
                                                 b)   86          b)   134      b)   173     b)   286
---------------------------------------------------------------------------------------------------------
Franklin Zero Coupon Fund 2005                   a)   83          a)   126      a)   161     a)   260
                                                 b)   87          b)   138      b)   180     b)   300
---------------------------------------------------------------------------------------------------------
Franklin Zero Coupon Fund 2010                   a)   83          a)   126      a)   161     a)   260
                                                 b)   87          b)   138      b)   180     b)   300
---------------------------------------------------------------------------------------------------------
Mutual Discovery Securities Fund                 a)   86          a)   136      a)   177     a)   295
                                                 b)   90          b)   147      b)   196     b)   333
---------------------------------------------------------------------------------------------------------
Mutual Shares Securities Fund                    a)   84          a)   130      a)   166     a)   272
                                                 b)   88          b)   141      b)   185     b)   311
---------------------------------------------------------------------------------------------------------
Templeton Developing Markets Securities Fund     a)   92          a)   152      a)   203     a)   347
                                                 b)   96          b)   163      b)   221     b)   384
---------------------------------------------------------------------------------------------------------
Templeton Foreign Securities Fund                a)   85          a)   133      a)   171     a)   283
                                                 b)   89          b)   144      b)   190     b)   322
---------------------------------------------------------------------------------------------------------
Templeton Growth Securities Fund                 a)   85          a)   131      a)   169     a)   278
                                                 b)   89          b)   143      b)   188     b)   317
---------------------------------------------------------------------------------------------------------
USAZ Templeton Developed Markets Fund            a)   89          a)   143      a)   188     a)   317
                                                 b)   93          b)   154      b)   207     b)   355
---------------------------------------------------------------------------------------------------------
Jennison 20/20 Focus Portfolio                   a)   90          a)   145      a)   192     a)   325
                                                 b)   93          b)   156      b)   210     b)   362
---------------------------------------------------------------------------------------------------------
SP Jennison International Growth Portfolio       a)   93          a)   153      a)   206     a)   354
                                                 b)   97          b)   165      b)   225     b)   390
---------------------------------------------------------------------------------------------------------
SP Strategic Partners Focused Growth Portfolio   a)   90          a)   147      a)   196     a)   332
                                                 b)   94          b)   158      b)   214     b)   369
---------------------------------------------------------------------------------------------------------
Oppenheimer Global Securities Fund/VA            a)   83          a)   127      a)   162     a)   262
                                                 b)   87          b)   138      b)   181     b)   302
---------------------------------------------------------------------------------------------------------
Oppenheimer High Income Fund/VA                  a)   84          a)   130      a)   166     a)   272
                                                 b)   88          b)   141      b)   185     b)   311
---------------------------------------------------------------------------------------------------------
Oppenheimer Main Street Growth & Income Fund/VA  a)   84          a)   128      a)   163     a)   265
                                                 b)   88          b)   139      b)   182     b)   305
---------------------------------------------------------------------------------------------------------
USAZ Oppenheimer Emerging Growth Fund            a)   89          a)   143      a)   188     a)   317
                                                 b)   93          b)   154      b)   207     b)   355
---------------------------------------------------------------------------------------------------------
PIMCO VIT High Yield Portfolio                   a)   84          a)   128      a)   164     a)   267
                                                 b)   88          b)   140      b)   183     b)   307
---------------------------------------------------------------------------------------------------------
PIMCO VIT StocksPLUS Growth and Income Portfolio a)   83          a)   126      a)   160     a)   259
                                                 b)   87          b)   137      b)   179     b)   300
---------------------------------------------------------------------------------------------------------
PIMCO VIT Total Return Portfolio                 a)   83          a)   126      a)   159     a)   257
                                                 b)   87          b)   137      b)   178     b)   298
---------------------------------------------------------------------------------------------------------
USAZ PIMCO Growth and Income Fund                a)   87          a)   138      a)   181     a)   302
                                                 b)   91          b)   150      b)   200     b)   341
---------------------------------------------------------------------------------------------------------
USAZ PIMCO Renaissance Fund                      a)   87          a)   138      a)   181     a)   302
                                                 b)   91          b)   150      b)   200     b)   341
---------------------------------------------------------------------------------------------------------
USAZ PIMCO Value Fund                            a)   87          a)   138      a)   181     a)   302
                                                 b)   91          b)   150      b)   200     b)   341
---------------------------------------------------------------------------------------------------------
Seligman Small-Cap Value Portfolio               a)   88          a)   141      a)   185     a)   311
                                                 b)   92          b)   152      b)   204     b)   349
---------------------------------------------------------------------------------------------------------
USAZ Money Market Fund                           a)   85          a)   133      a)   171     a)   283
                                                 b)   89          b)   144      b)   190     b)   322
---------------------------------------------------------------------------------------------------------
USAZ Van Kampen Aggressive Growth Fund           a)   89          a)   143      a)   188     a)   317
                                                 b)   93          b)   154      b)   207     b)   355
---------------------------------------------------------------------------------------------------------
USAZ Van Kampen Comstock Fund                    a)   88          a)   141      a)   186     a)   312
                                                 b)   92          b)   152      b)   204     b)   350
---------------------------------------------------------------------------------------------------------
USAZ Van Kampen Emerging Growth Fund             a)   87          a)   138      a)   181     a)   302
                                                 b)   91          b)   150      b)   200     b)   341
---------------------------------------------------------------------------------------------------------
USAZ Van Kampen Growth and Income Fund           a)   87          a)   138      a)   181     a)   302
                                                 b)   91          b)   150      b)   200     b)   341
---------------------------------------------------------------------------------------------------------
USAZ Van Kampen Growth Fund                      a)   88          a)   141      a)   186     a)   312
                                                 b)   92          b)   152      b)   204     b)   350
---------------------------------------------------------------------------------------------------------
</TABLE>


You would pay the following expenses on a $1,000 investment, assuming a 5%
annual return on your money if your New Contract is not withdrawn or if you
apply your Contract value to an Annuity Option for Contracts with the :


(a) EP GMDB and the Traditional GMIB (with the highest total Separate Account
annual charges of 2.20%).


(b) Traditional GMDB with no GMIB (with the lowest total Separate Account annual
charges of 1.75%) THE TABLE BELOW WILL BE UPDATED UPON AMENDMENT.

<TABLE>
<CAPTION>
<S>                                              <C>             <C>            <C>         <C>

                                                 1 Year           3 Years       5 Years      10 Years
---------------------------------------------------------------------------------------------------------
USAZ AIM Basic Value Fund                        a)   27          a)     84     a)   143     a)   302
                                                 b)   31          b)     95     b)   162     b)   341
---------------------------------------------------------------------------------------------------------
USAZ AIM Blue Chip Fund                          a)   28          a)     85     a)   145     a)   307
                                                 b)   32          b)     97     b)   165     b)   346
---------------------------------------------------------------------------------------------------------
USAZ AIM Dent Demographic Trends Fund            a)   28          a)     87     a)   147     a)   312
                                                 b)   32          b)     98     b)   167     b)   350
---------------------------------------------------------------------------------------------------------
USAZ AIM International Equity Fund               a)   29          a)     88     a)   150     a)   317
                                                 b)   33          b)   100      b)   169     b)   355
---------------------------------------------------------------------------------------------------------
USAZ Alliance Capital Growth and Income Fund     a)   27          a)     84     a)   143     a)   302
                                                 b)   31          b)     95     b)   162     b)   341
---------------------------------------------------------------------------------------------------------
USAZ Alliance Capital Large Cap Growth Fund      a)   27          a)     84     a)   143     a)   302
                                                 b)   31          b)     95     b)   162     b)   341
---------------------------------------------------------------------------------------------------------
USAZ Alliance Capital Technology Fund            a)   29          a)     88     a)   150     a)   317
                                                 b)   33          b)   100      b)   169     b)   355
---------------------------------------------------------------------------------------------------------
Davis VA Financial Portfolio                     a)   26          a)     81     a)   138     a)   293
                                                 b)   30          b)     92     b)   157     b)   331
---------------------------------------------------------------------------------------------------------
Davis VA Value Portfolio                         a)   25          a)     77     a)   131     a)   280
                                                 b)   29          b)     89     b)   151     b)   319
---------------------------------------------------------------------------------------------------------
Dreyfus Small Cap Stock Index Fund               a)   22          a)     68     a)   117     a)   252
                                                 b)   26          b)     81     b)   138     b)   293
---------------------------------------------------------------------------------------------------------
Dreyfus Stock index Fund                         a)   22          a)     68     a)   116     a)   249
                                                 b)   26          b)     80     b)   136     b)   290
---------------------------------------------------------------------------------------------------------
Franklin Global Communications Securities Fund   a)   22          a)     67     a)   115     a)   247
                                                 b)   26          b)     79     b)   135     b)   288
---------------------------------------------------------------------------------------------------------
Franklin Growth and Income Securities Fund       a)   21          a)     66     a)   113     a)   243
                                                 b)   25          b)     78     b)   133     b)   284
---------------------------------------------------------------------------------------------------------
Franklin High Income Fund                        a)   22          a)     69     a)   118     a)   254
                                                 b)   26          b)     81     b)   139     b)   295
---------------------------------------------------------------------------------------------------------
Franklin Income Securities Fund                  a)   22          a)     66     a)   114     a)   245
                                                 b)   26          b)     78     b)   134     b)   286
---------------------------------------------------------------------------------------------------------
Franklin Large Cap Growth Securities Fund        a)   24          a)     74     a)   127     a)   271
                                                 b)   28          b)     86     b)   146     b)   310
---------------------------------------------------------------------------------------------------------
Franklin Real Estate Fund                        a)   22          a)     68     a)   117     a)   251
                                                 b)   26          b)     80     b)   137     b)   292
---------------------------------------------------------------------------------------------------------
Franklin Rising Dividends Securities Fund        a)   24          a)     73     a)   125     a)   268
                                                 b)   28          b)     85     b)   146     b)   308
---------------------------------------------------------------------------------------------------------
Franklin Small Cap Fund                          a)   24          a)     73     a)   125     a)   268
                                                 b)   28          b)     85     b)   146     b)   308
---------------------------------------------------------------------------------------------------------
Franklin Small Cap Value Securities Fund         a)   24          a)     74     a)   126     a)   270
                                                 b)   28          b)     86     b)   146     b)   309
---------------------------------------------------------------------------------------------------------
Franklin U.S. Government Fund                    a)   22          a)     66     a)   114     a)   245
                                                 b)   26          b)     78     b)   134     b)   286
---------------------------------------------------------------------------------------------------------
Franklin Zero Coupon Fund 2005                   a)   23          a)     71     a)   121     a)   260
                                                 b)   27          b)     83     b)   142     b)   300
---------------------------------------------------------------------------------------------------------
Franklin Zero Coupon Fund 2010                   a)   23          a)     71     a)   121     a)   260
                                                 b)   27          b)     83     b)   142     b)   300
---------------------------------------------------------------------------------------------------------
Mutual Discovery Securities Fund                 a)   26          a)     81     a)   139     a)   295
                                                 b)   30          b)     93     b)   158     b)   333
---------------------------------------------------------------------------------------------------------
Mutual Shares Securities Fund                    a)   24          a)     74     a)   127     a)   272
                                                 b)   28          b)     86     b)   147     b)   311
---------------------------------------------------------------------------------------------------------
Templeton Developing Markets Securities Fund     a)   32          a)     98     a)   166     a)   347
                                                 b)   36          b)   109      b)   185     b)   384
---------------------------------------------------------------------------------------------------------
Templeton Foreign Securities Fund                a)   25          a)     78     a)   133     a)   283
                                                 b)   29          b)     90     b)   152     b)   322
---------------------------------------------------------------------------------------------------------
Templeton Growth Securities Fund                 a)   25          a)     76     a)   130     a)   278
                                                 b)   29          b)     88     b)   150     b)   317
---------------------------------------------------------------------------------------------------------
USAZ Templeton Developed Markets Fund            a)   29          a)     88     a)   150     a)   317
                                                 b)   33          b)    100     b)   169     b)   355
---------------------------------------------------------------------------------------------------------
Jennison 20/20 Focus Portfolio                   a)   30          a)     90     a)   154     a)   325
                                                 b)   33          b)   102      b)   173     b)   362
---------------------------------------------------------------------------------------------------------
SP Jennison International Growth Portfolio       a)   33          a)   100      a)   169     a)   354
                                                 b)   37          b)   111      b)   188     b)   390
---------------------------------------------------------------------------------------------------------
SP Strategic Partners Focused Growth Portfolio   a)   30          a)     93     a)   158     a)   332
                                                 b)   34          b)   105      b)   177     b)   369
---------------------------------------------------------------------------------------------------------
Oppenheimer Global Securities Fund/VA            a)   23          a)     72     a)   122     a)   262
                                                 b)   27          b)     84     b)   143     b)   302
---------------------------------------------------------------------------------------------------------
Oppenheimer High Income Fund/VA                  a)   24          a)     74     a)   127     a)   272
                                                 b)   28          b)     86     b)   147     b)   311
---------------------------------------------------------------------------------------------------------
Oppenheimer Main Street Growth & Income Fund/VA  a)   24          a)     72     a)   124     a)   265
                                                 b)   28          b)     84     b)   144     b)   305
---------------------------------------------------------------------------------------------------------
USAZ Oppenheimer Emerging Growth Fund            a)   29          a)     88     a)   150     a)   317
                                                 b)   33          b)    100     b)   169     b)   355
---------------------------------------------------------------------------------------------------------
PIMCO VIT High Yield Portfolio                   a)   24          a)     73     a)   125     a)   267
                                                 b)   28          b)     85     b)   145     b)   307
---------------------------------------------------------------------------------------------------------
PIMCO VIT StocksPLUS Growth and Income Portfolio a)   23          a)     71     a)   121     a)   259
                                                 b)   27          b)     83     b)   141     b)   300
---------------------------------------------------------------------------------------------------------
PIMCO VIT Total Return Portfolio                 a)   23          a)     70     a)   120     a)   257
                                                 b)   27          b)     82     b)   140     b)   298
---------------------------------------------------------------------------------------------------------
USAZ PIMCO Growth and Income Fund                a)   27          a)     84     a)   143     a)   302
                                                 b)   31          b)     95     b)   162     b)   341
---------------------------------------------------------------------------------------------------------
USAZ PIMCO Renaissance Fund                      a)   27          a)     84     a)   143     a)   302
                                                 b)   31          b)     95     b)   162     b)   341
---------------------------------------------------------------------------------------------------------
USAZ PIMCO Value Fund                            a)   27          a)     84     a)   143     a)   302
                                                 b)   31          b)     95     b)   162     b)   341
---------------------------------------------------------------------------------------------------------
Seligman Small-Cap Value Portfolio               a)   28          a)     86     a)   147     a)   311
                                                 b)   32          b)     98     b)   167     b)   349
---------------------------------------------------------------------------------------------------------
USAZ Money Market Fund                           a)   25          a)     78     a)   133     a)   283
                                                 b)   29          b)     90     b)   152     b)   322
---------------------------------------------------------------------------------------------------------
USAZ Van Kampen Aggressive Growth Fund           a)   29          a)     88     a)   150     a)   317
                                                 b)   33          b)   100      b)   169     b)   355
---------------------------------------------------------------------------------------------------------
USAZ Van Kampen Comstock Fund                    a)   28          a)     87     a)   147     a)   312
                                                 b)   32          b)     98     b)   167     b)   350
---------------------------------------------------------------------------------------------------------
USAZ Van Kampen Emerging Growth Fund             a)   27          a)     84     a)   143     a)   302
                                                 b)   31          b)     95     b)   162     b)   341
---------------------------------------------------------------------------------------------------------
USAZ Van Kampen Growth and Income Fund           a)   27          a)     84     a)   143     a)   302
                                                 b)   31          b)     95     b)   162     b)   341
---------------------------------------------------------------------------------------------------------
USAZ Van Kampen Growth Fund                      a)   28          a)     87     a)   147     a)   312
                                                 b)   32          b)     98     b)   167     b)   350
---------------------------------------------------------------------------------------------------------
</TABLE>


See Appendix A for Accumulation Unit Values - Condensed Financial Information.



<PAGE>



1. The variable annuity contract
--------------------------------------------------------------------------------



This prospectus  describes a flexible purchase payment variable deferred annuity
Contract offered by Allianz Life.


o    Flexible  Purchase  Payment  means  that you may  choose  to make  Purchase
     Payments at any time during the  Accumulation  Phase in whatever amount you
     choose, subject to certain minimum and maximum requirements.

o    A deferred  annuity Contract means that Annuity Payments do not begin for a
     specified  period of time in the future  (usually when you retire) or until
     you reach a certain age.

o    A variable  annuity is one in which  Contract  values  and/or the  variable
     Annuity  Payments  vary  depending  on  the  performance  of  the  variable
     Investment Options.

An annuity is a contract  between you, the owner,  and an insurance  company (in
this case Allianz  Life),  where the insurance  company  promises to pay you (or
someone else you choose) an income, in the form of Annuity Payments. The Annuity
Payments  must  begin on a  designated  date that is at least  two  years  after
Contract  issue.  Until you decide to begin  receiving  Annuity  Payments,  your
Contract  is in  the  Accumulation  Phase.  Once  you  begin  receiving  Annuity
Payments, your Contract switches to the Payout Phase.


The Contract  benefits  from Tax Deferral.  Tax Deferral  means that you are not
taxed on any earnings or  appreciation  on the assets in your Contract until you
take money out of your Contract.


Your  Investment  Choices  include  the  variable  Investment  Options  and  any
available  Fixed Account  option.  You may not invest in more than 10 Investment
Options at any one time. Depending upon market conditions,  you can make or lose
money  in the  Contract  based on the  investment  performance  of the  variable
Investment  Options.  The  variable  Investment  Options are designed to offer a
better return than any available Fixed Account Investment Choice.  However, this
is not guaranteed.


We will not make any changes to your Contract without your permission  except as
may be required by law.


OWNERSHIP

Contract  Owner.  You,  as the  Contract  Owner,  have all the rights  under the
Contract.  The  Contract  Owner is as  designated  at the time the  Contract  is
issued,  unless  changed.  You may change  Contract  Owners for a  Non-Qualified
Contract at any time subject to our approval. Upon our approval, the change will
become  effective  as of the date the  request is signed.  This may be a taxable
event. You should consult with your tax adviser before doing this.

Joint Owner. The Non-Qualified  Contract can be owned by Joint Owners. Any Joint
Owner must be the spouse of the other Contract Owner (this  requirement  may not
apply in certain  states).  Upon the death of either Joint Owner,  the surviving
Joint  Owner  will  be  the  designated   Beneficiary.   Any  other  Beneficiary
designation  at the time the  Contract  was  issued  or as may have  been  later
changed will be treated as a contingent Beneficiary unless otherwise indicated.



Annuitant.  The  Annuitant  is the  individual  on  whose  life we base  Annuity
Payments.  You name the  Annuitant.  You may  change the  Annuitant  at any time
before the Income Date unless the  Contract  is owned by a  non-individual  (for
example,  a qualified  plan or trust).  For a Qualified  Contract there may be a
requirement that the Owner be the Annuitant .

Beneficiary.  The Beneficiary is the person(s) or entity you name to receive any
death  benefit.  The  Beneficiary  is named at the time the  Contract  is issued
unless  changed at a later  date.  Unless an  irrevocable  Beneficiary  has been
named, you can change the Beneficiary or contingent Beneficiary.

Assignment.  You can  transfer  ownership  (assign) of the  Contract at any time
during your lifetime. We will not be bound by the assignment until we record the
assignment.  We will not be liable for any  payment  or other  action we take in
accordance  with the Contract  before we receive notice of the  assignment.  Any
assignment made after the death benefit has become payable can only be done with
our consent. An assignment may be a taxable event. You may be unable to assign a
Qualified Contract.



2. annuity payments

(the payout phase)
--------------------------------------------------------------------------------



INCOME DATE

You can receive  regular  monthly income  payments under your Contract.  You can
choose the month and year in which those payments  begin.  We call that date the
Income Date. Your Income Date must be the first day of a calendar month and must
be at least 2 years after you buy the  Contract.  To receive the annuity  income
protection of the Guaranteed  Minimum Income  Benefit  (GMIB),  your Income Date
must be within 30 days  following  a  Contract  anniversary  beginning  with the
seventh Contract anniversary (and certain other conditions must be met).



We ask you to choose your Income Date when you  purchase the  Contract.  You can
change it after  Contract  issue subject to our approval.  Your Income Date must
not be  later  than  the  Annuitant's  85th  birthday  or 10  years  (5 years in
Pennsylvania)  from the date the Contract was issued,  unless approved by us, or
the maximum date permitted  under state law. This  limitation may not apply when
the Contract is issued to a charitable remainder trust.

ANNUITY PAYMENTS



Generally, you may elect to receive your Annuity Payments under Annuity Options
1-5 as:


|X|      a variable payout,


|X|      a fixed payout,

|X|      or a combination of both.

Under a fixed payout, all of the Annuity Payments will be the same dollar amount
(equal installments).  If you choose a variable payout, you can select up to ten
of the  available  Investment  Options.  If you do not tell us  otherwise,  your
Annuity Payments will be based on the investment  allocations that were in place
on the Income Date.  Guaranteed  fixed annuity payments are based on an interest
rate of 2.5% per year and the mortality table in your Contract.

If you  choose  to have  any  portion  of your  Annuity  Payments  based  on the
investment  performance of the Investment  Option(s),  the dollar amount of your
payments will depend upon three factors:

1. the value of your Contract  adjusted for any applicable MVA (less any premium
tax) on the Income Date;

2. the 5% assumed  investment  rate used in the annuity  table for the Contract;
and

3. the performance of the Investment Option(s) you selected.

The assumed investmentrate ( AIR) is 5%. However, we may agree with you to use a
different value. The AIR will never exceed 7% AIR The 7% AIR is not available in
all states.  If the actual  performance  exceeds the AIR, your Annuity  Payments
will increase.  Similarly, if the actual rate is less than the AIR, your Annuity
Payments will decrease."



You (or someone you  designate)  will  receive  the Annuity  Payments.  You will
receive tax reporting on those payments.


partial annuitization

You are  currently  allowed to  annuitize  a portion of your  Contract,  without
annuitizing  the entire value according to the applicable  annuitization  rules.
This is referred to as a partial  annuitization.  A partial  annuitization  will
decrease the amounts available for withdrawal, payment of death benefits and any
additional Annuity Payments.


A partial annuitization may be treated as a partial withdrawal for tax purposes.
You should consult a tax adviser before requesting a partial  annuitization.  We
may deduct premium taxes from partially  annuitized amounts. We do not currently
restrict the number of partial annuitizations for a Contract, but we reserve the
right to do so.

ANNUITY OPTIONS


You can choose among income plans (Annuity  Options).  You can choose one of the
following Annuity Options or any other Annuity Option you want and that we agree
to. Prior to the Income Date you may change the Annuity  Option with at least 30
days written notice to us, After Annuity  Payments begin,  you cannot change the
Annuity Option. If you do not choose an Annuity Option prior to the Income Date,
we will assume that you selected the variable  payouts  under  Annuity  Option 2
with 5 years  guaranteed  payments.  Upon the death of the  Contract  Owner,  if
different than the Annuitant, the Beneficiary will receive the Annuity Payments.


OPTION 1. Life Annuity. Under this option, we will make monthly Annuity Payments
so long as the  Annuitant is alive.  After the  Annuitant  dies,  we stop making
Annuity Payments.

OPTION 2. Life Annuity with 5, 10, 15 or 20 Year Payments Guaranteed. Under this
option, we will make monthly Annuity Payments so long as the Annuitant is alive.
However, if the Annuitant dies before the end of the selected guaranteed period,
we will  continue to make  Annuity  Payments to you or any person you choose for
the  rest  of the  guaranteed  period.  If you do not  want to  receive  Annuity
Payments after the Annuitant's death, you can ask for a single lump sum equal to
the present value of the guaranteed  monthly Annuity Payments  remaining,  as of
the date Allianz Life receives proof of the death of the Annuitant and a payment
election form, commuted as set forth in the Contract.

OPTION 3.  Joint and Last  Survivor  Annuity.  Under this  option,  we will make
monthly  Annuity  Payments  during the joint  lifetime of the  Annuitant and the
joint Annuitant. When the Annuitant dies, if the joint Annuitant is still alive,
we will  continue  to make  Annuity  Payments  so  long as the  joint  Annuitant
continues to live. The amount of the Annuity Payments we will make to you can be
equal to 100%, 75% or 50% of the amount that was being paid when both Annuitants
were  alive.  The  monthly  Annuity  Payments  will end when the last  surviving
Annuitant dies.

OPTION 4. Joint and Last  Survivor  Annuity  with 5, 10, 15 or 20 Year  Payments
Guaranteed.  Under this option, we will make monthly Annuity Payments during the
joint  lifetime of the  Annuitant  and the joint  Annuitant.  When the Annuitant
dies,  if the joint  Annuitant is still alive,  we will continue to make Annuity
Payments,  so long as the surviving  Annuitant continues to live, at 100% of the
amount that was being paid when both were alive. If, when the last death occurs,
we have made Annuity Payments for less than the selected  guaranteed  period, we
will  continue to make Annuity  Payments to you or any person you choose for the
rest of the guaranteed  period.  If you do not want to receive Annuity  Payments
after  the  Annuitant's  death,  you can ask for a single  lump sum equal to the
present value of the guaranteed  monthly Annuity Payments  remaining,  as of the
date Allianz Life  receives  proof of the death of the  Annuitant  and a payment
election form, commuted as set forth in the Contract.

OPTION 5. Refund Life Annuity.  Under this option,  we will make monthly Annuity
Payments during the Annuitant's lifetime.  The last Annuity Payment will be made
before the Annuitant dies and if the value of the Annuity  Payments made is less
than the value applied to the Annuity Option,  then you will receive a refund as
set forth in the Contract.


GUARANTEED MINIMUM INCOME BENEFITS (GMIB) -- ANNUITY INCOME PROTECTION

New  Contracts  provide  the  Traditional  GMIB as an  optional  benefit  for an
additional mortality and expense risk charge.

Old Contracts  provide two Guaranteed  Minimum Income Benefit (GMIB) options for
an additional  mortality and expense risk charge if all owners are 75 or younger
at Contract issue.  GMIB Option 1 is only available if you also select DB Option
1 or the EP GMDB. GMIB Option 2 is only available if you also select DB Option 2
or the EP GMDB.  You may only  select one GMIB and once you  select a GMIB,  you
cannot change it. You must hold your Contract for seven complete  Contract years
before you can exercise a GMIB. A GMIB that carries an additional charge may not
be  appropriate  for you if you intend to hold your Contract for less than seven
years.

These GMIBs apply to the Annuitant on a Contract owned by a non-individual.  The
GMIBs  do  not  create  Contract  value  or  guarantee  the  performance  of any
Investment  Option.  These GMIBs may not be available in your state.  Check with
your registered  representative  regarding  availability  and be sure to discuss
whether a GMIB is appropriate for your situation.

The annuity income protection  provided by the GMIBs described below and used in
determining  the amount of each  Annuity  Payment you receive  during the Payout
Phase.  You can use a GMIB with fixed Annuity Options 1 through 5 only. The GMIB
provides  guaranteed  minimum Annuity Payments during the Payout Phase. The GMIB
protection will apply only under the following circumstances:


1.   Your  Income Date must be within 30 days  following a Contract  anniversary
     beginning with the seventh Contract anniversary; and

2.   Annuity  Payments  can only be made as a fixed  payout,  regardless  of the
     Annuity Option you select.


The GMIBs guarantee that your Annuity Payments will be equal to the "guaranteed"
fixed  payout  rates  applied to the GMIB  value  described  below.  We will use
"current"  fixed payout rates  applied to the  Contract  value  adjusted for any
applicable  MVA (less any  applicable  premium  tax) to  calculate  your Annuity
Payments if that produces a greater  payment.  If we use the Contract  value and
the current fixed payout rates to calculate your Annuity  Payments you will have
incurred higher Contract  expenses  without  receiving any explicit benefit from
the GMIB option.


You can always  annuitize  your Contract value two years or more after the issue
date* under a fixed and/or  variable  Annuity  Option.  However,  if you do, you
cannot use the GMIB value.

If Joint  Owners  are  named,  we will use the age of the older  Joint  Owner to
determine the GMIB value.

*Some states may require a shorter period of time.




THE  TRADITIONAL  GUARANTEED  MINIMUM  INCOME BENEFIT  (TRADITIONAL  GMIB) - NEW
CONTRACTS ONLY


The GMIB value before the date of your death is equal to:
|X|      your total Purchase Payments
|X|  minus the percentage of any Contract value withdrawn (prior to any MVA, but
     including any contingent deferred sales charge) for each withdrawal you
     made.

Traditional GMIB Example:

o    You purchase a New Contract with an initial  Purchase  Payment of $100,000.
     You allocate your entire Purchase Payment to the Investment Options and you
     make no additional  Purchase Payments.  On the 6th year your Contract value
     is $160,000 and you can make a $20,000 partial withdrawl.

o    You take a partial  withdrawal  of $20,000  (this  includes any  contingent
     deferred sales charge) in the tenth Contract Year when the Contract value (
     prior to the partial  withdrawal)  is $160,000.  You take no other  partial
     withdrawals.



 Total Purchase Payments:                                            $100,000
 Minus the percentage of Contract value
   withdrawn:   ($20,000 / $160,000) = 0.125 x $100,000 =            -  12,500
 Traditional GMIB value as of the seventh Contract anniversary:      $ 87,500


If the GMIB value is greater than your  Contract  value on the Income Date,  you
may  receive a higher  Annuity  Payment by using the GMIB  value.  However,  the
guaranteed  fixed  payout  rates  available  with  the  GMIB  value  may be more
conservative  than the current fixed payout rates that are otherwise  available.
Therefore,  the Annuity  Payment you would receive by using the GMIB value might
be less than the payment  you would get using the  Contract  Value,  even if the
GMIB value is greater  than the Contract  value.  We will use  whichever  amount
produces the greater Annuity Payment to calculate your payments.



GUARANTEED MINIMUM INCOME BENEFIT OPTION 1 (GMIB OPTION 1) - OLD CONTRACTS ONLY


The GMIB value before the date of your death is equal to the greater of A or B
described below.

A.       Annual Increase Amount

The Annual Increase Amount is initially equal to your Purchase Payment.


On each  business  day other than a Contract  anniversary,  the Annual  Increase
Amount is equal to: |X| its value on the immediately preceding business day, |X|
plus any additional  Purchase Payments received that day, and |X| minus any GMIB
adjusted partial withdrawal (defined below) you make that day.


On every  Contract  anniversary  prior to your 81st birthday  (76th  birthday in
Washington),  the  Annual  Increase  Amount  is equal  to:  |X| its value on the
immediately  preceding  business day  increased  by 5%; |X| plus any  additional
Purchase  Payments  received that day, and |X| minus any GMIB  adjusted  partial
withdrawal s(defined below) you make that day.


Beginning  with the  Contract  anniversary  that  occurs  on or after  your 81st
birthday (76th birthday in Washington),  we calculate the Annual Increase Amount
in  the  same  way  that  we do on  any  business  day  other  than  a  Contract
anniversary.


B.       The Six-Year Step Up

The Six-Year Step Up is initially equal to your Purchase Payment.


On each business day other than a sixth year Contract anniversary,  the Six-Year
Step Up is equal to: |X| its value on the  immediately  preceding  business day,
|X| plus any additional  Purchase  Payments received that day, and |X| minus any
GMIB adjusted partial withdrawal (defined below) you make that day.

On every sixth year Contract anniversary (the 6th, 12th, 18th, 24th, etc.) prior
to your 81st birthday  (76th  birthday in  Washington),  the Six-Year Step Up is
equal to:  |X| the  highest  Contract  value  that  occurred  on any sixth  year
Contract anniversary,  |X| plus subsequent additional Purchase Payments you made
since  that  Contract  anniversary,  and |X|  minus  any GMIB  adjusted  partial
withdrawals (defined below) you made since that Contract anniversary.

Beginning  with the  Contract  anniversary  that  occurs  on or after  your 81st
birthday (76th birthday in Washington), we calculate the Six-Year Step Up in the
same  way  that we do on any  business  day  other  than a sixth  year  Contract
anniversary.


GUARANTEED MINIMUM INCOME BENEFIT OPTION 2 (GMIB OPTION 2) - OLD CONTRACTS ONLY


The GMIB  value  before  the date of your  death is equal to the  greater of the
Maximum  Anniversary  Value described below or: |X| your total Purchase Payments
|X|  minus  any  GMIB  adjusted  partial  withdrawal  (defined  below)  for each
withdrawal you made.


Maximum Anniversary Value (MAV)

The MAV is initially equal to your Purchase Payment.


On each business day other than a Contract anniversary, the MAV is equal to: |X|
its value on the  immediately  preceding  business day, |X| plus any  additional
Purchase  Payments  received that day, and |X| minus any GMIB  adjusted  partial
withdrawal (defined below) you make that day.

On every  Contract  anniversary  prior to your 81st birthday  (76th  birthday in
Washington),  the MAV is equal to: |X| the highest  Contract value that occurred
on any Contract  anniversary,  |X| plus subsequent  additional Purchase Payments
you made  since  that  Contract  anniversary,  and |X| minus  any GMIB  adjusted
partial withdrawals (defined below) you made since that Contract anniversary.

Beginning  with the  Contract  anniversary  that  occurs  on or after  your 81st
birthday  (76th  birthday in  Washington),  we calculate the MAV in the same way
that we do on any business day other than a Contract anniversary.

A GMIB adjusted partial withdrawal   =  PW  x  GMIB
                                            CV

         PW = the partial withdrawal prior to any MVA, but including any
contingent deferred sales charge.
         DB       = the greater of (a) Contract value, or (b) the applicable
                  GMIB value (Annual Increase Amount, Six-Year Step Up, total
                  Purchase Payments or MAV).
         CV = the Contract value on the date of (but prior to) the partial
withdrawal.



3. PURCHASE
--------------------------------------------------------------------------------


PURCHASE PAYMENTS

A Purchase Payment is the money you invest in the Contract. The Purchase Payment
requirements are:


|X| For  Non-Qualified  Contract,  the minimum initial payment we will accept is
$5,000.

|X| For  Qualified  Contracts,  the  minimum  initial  payment we will accept is
$2,000.


|X| The maximum  amount we will accept  without our prior approval is $1 million
in all Contracts with us.




|X| You can make  additional  Purchase  Payments  of at least $250 (or as low as
$100 if you selected the automatic investment plan).

We may, at our sole discretion,  waive the minimum initial payment requirements.
We reserve the right to decline any Purchase  Payments.  At Contract issue,  you
and the Annuitant cannot be older than 85 years old.


This product is not designed for professional market timing organizations, other
entities, or persons using programmed, large or frequent transfers.

The Contract may be used in  connection  with certain tax  qualified  retirement
plans.  The Contract  includes  attributes  such as tax deferral on  accumulated
earnings. Qualified retirement plans provide their own tax deferral benefit; the
purchase of this  Contract  does not provide  additional  tax deferral  benefits
beyond those provided in the qualified plan. Accordingly,  if you are purchasing
the Contract  through a qualified  plan,  you should  consider  purchasing  this
Contract for its Death Benefit,  annuity  benefits,  and other non-tax  deferral
related benefits.  Please consult a tax advisor for information specific to your
circumstances to determine whether the Contract is an appropriate investment for
you.

AUTOMATIC INVESTMENT PLAN


The  automatic  investment  plan  (AIP) is a program  which  allows  you to make
additional Purchase Payments to your Contract on a monthly or quarterly basis by
electronic  transfer of monies from your  savings or checking  account.  You may
participate in this program by completing the appropriate  form. We must receive
your form by the first of the month in order for AIP to begin  that same  month.
Investments  will take place on the 20th of the month, or the next business day.
The minimum  investment that can be made by AIP is $100. You may stop AIP at any
time you want. We need to be notified by the first of the month in order to stop
or change AIP that month.  If AIP is used for a Qualified  Contract,  you should
consult your tax adviser for advice regarding maximum contributions.


ALLOCATION OF PURCHASE PAYMENTS


When you purchase a Contract,  we will  allocate  your  Purchase  Payment to the
Investment  Choices you have  selected.  We ask that you allocate  your money in
either  whole  percentages  or  round  dollars.  Transfers  do  not  change  the
allocation  instructions  for  payments.  You can  instruct  us how to  allocate
additional  Purchase  Payments  you  make.  If you do not  instruct  us, we will
allocate  them in the  same way as your  previous  instructions  to us.  You may
change the allocation of future  payments  without fee,  penalty or other charge
upon written notice or telephone instructions to our Service Center.

A change will be  effective  for  payments  received on or after we receive your
notice or  instructions.  We reserve the right to limit the number of Investment
Choices that you may invest in at one time.  Currently,  you may invest in up to
ten  Investment  Options  at any one time.  We may  change  this in the  future.
However, we will always allow you to invest in at least five Investment Options.


Once we receive your  Purchase  Payment and the necessary  information,  we will
issue your Contract and allocate your first  Purchase  Payment within 2 business
days. If you do not give us all of the  information we need, we will contact you
or your registered representative to get it. If for some reason we are unable to
complete  this  process  within 5 business  days,  we will either send back your
money  or get  your  permission  to keep it  until  we get all of the  necessary
information.  If you make  additional  Purchase  Payments,  we will credit these
amounts to your  Contract  within one business day. Our business day closes when
the New York Stock Exchange closes, which is usually at 4:00 p.m. Eastern time.

Tax-free section 1035 exchanges


You generally can exchange one annuity contract, or a life insurance policy, for
another  annuity  contract in a "tax-free"  exchange  under  Section 1035 of the
Internal  Revenue  Code.  Before  making an  exchange,  you should  compare both
contracts carefully.  Remember that if you exchange another annuity contract for
the one described in this prospectus:  you might have to pay a withdrawal charge
on your old contract;  there will be a new withdrawal  charge period for the new
contract; other charges under the new contract may be higher (or lower); and the
benefits may be  different.  If the  exchange  does not qualify for Section 1035
treatment,  you also may have to pay  federal  income tax on the  exchange.  You
should not exchange  another annuity  contract for this one unless you determine
that the exchange is in your best interest.


Faxed applications


Allianz Life will accept Contract applications  delivered in writing, as well as
via fax. A manually signed faxed  application  will be treated as an application
delivered  in  writing.  Please note that fax  communications  may not always be
available.   Any  fax   system,   whether   it  is  yours  or  your   registered
representative's,  can experience outages or slowdowns for a variety of reasons.
These outages or slowdowns may delay or prevent our  processing of your request.
Although  we have taken  precautions  to help our systems  handle  heavy use, we
cannot  promise  complete  reliability  under  all  circumstances.  If  you  are
experiencing  problems,  you should  submit your  application  in writing to our
service center.  We do not currently accept  applications  delivered via e-mail,
web site,  or other  electronic  communications.  This may be  available  in the
future.


FREE LOOK


If you change your mind about owning the  Contract,  you can cancel it within 10
days after receiving it (or the period required in your state).  When you cancel
the Contract within this time period,  Allianz Life will not assess a contingent
deferred sales charge.  You will receive back whatever your Contract is worth on
the day we receive your request. In certain states, or if you have purchased the
Contract as an IRA, we may be required to give you back your Purchase Payment if
you  decide to  cancel  your  Contract  within 10 days  after  receiving  it (or
whatever period is required in your state).  If that is the case, we reserve the
right to allocate  your initial  Purchase  Payment to the USAZ Money Market Fund
for 15 days after we receive it. (In some states,  the period may be longer.) At
the  end of that  period,  we  will  re-allocate  your  money  as you  selected.
Currently,  however,  we will  directly  allocate  your money to the  Investment
Choices as you have selected on your application.


Accumulation Units


The value of the portion of your Contract  allocated to the  Investment  Options
will go up or down  based  upon the  investment  performance  of the  Investment
Option(s)  you  choose.  The  value of your  Contract  will  also  depend on the
expenses of the Contract.  In order to keep track of the value of your Contract,
we use a  measurement  called an  Accumulation  Unit (which is like a share of a
mutual  fund).  During the Payout  Phase of the  Contract  we call it an Annuity
Unit.


Every  business  day we  determine  the value of an  Accumulation  Unit for each
Investment  Option by multiplying the  Accumulation  Unit value for the previous
period by a factor for the current period. The factor is determined by:

1)   dividing the value of an Investment Option at the end of the current period
     by the value of an Investment Option for the previous period; and

2)   multiplying  it by one minus the daily amount of the insurance  charges and
     any charges for taxes.


The  value  of an  Accumulation  Unit  may go up or down  from  business  day to
business day.


When you make a Purchase  Payment,  we credit your  Contract  with  Accumulation
Units for any  portion  of your  Purchase  Payment  allocated  to an  Investment
Option.  The  number of  Accumulation  Units we  credit  your  Contract  with is
determined  by  dividing  the amount of the  Purchase  Payment  allocated  to an
Investment Option by the value of the corresponding Accumulation Unit.

We calculate the value of each  Accumulation  Unit after regular  trading on the
New York Stock Exchange closes each day, and then credit your Contract.

EXAMPLE:

On Wednesday we receive an additional  Purchase  Payment of $3,000 from you. You
have told us you want this to go to the  Franklin  Growth and Income  Securities
Fund. When the New York Stock Exchange  closes on that  Wednesday,  we determine
that the value of an  Accumulation  Unit based on an  investment in the Franklin
Growth and Income Securities Fund is $12.50. We then divide $3,000 by $12.50 and
credit your Contract on Wednesday night with 240 Accumulation Units.


4. INVESTMENT OPTIONS
--------------------------------------------------------------------------------



The Contract offers the Investment  Options listed in the following table.  Each
Investment  Option  has  its own  investment  objective.  Additional  Investment
Options may be available  in the future.  In the future,  we also may  eliminate
Investment Options.


You should read the Investment  Option  prospectuses  carefully.  The Investment
Options  invest  in  different  types  of  securities,   and  following  varying
investment  strategies.  There are potential risks associated with each of these
types of  securities  and  investment  strategies.  For example,  an  Investment
Option's  performance  may be  affected by risks  specific  to certain  types of
investments, such as foreign securities, derivative investments,  non-investment
grade  debt  securities,  initial  public  offerings  (IPOs) or  companies  with
relatively small market  capitalizations.  IPOs and other investment  techniques
may have a magnified  performance  impact on an  Investment  Option with a small
asset base. An Investment Option may not experience  similar  performance as its
assets grow.  The  operation  of the  Investment  Options and the various  risks
associated  with the Investment  Options are described in the Investment  Option
prospectuses.  To obtain a current  prospectus for any of the Investment Options
call your  Financial  Adviser  or  USAllianz  at  1-800-542-5427.  Copies of the
Investment Option prospectuses will be sent to you with your Contract.

Franklin  Templeton  Variable  Insurance  Products  Trust  issues two classes of
shares which are described in the  prospectus  for Franklin  Templeton  Variable
Insurance  Products Trust.  Only Class 1 shares are available in connection with
your Contract.

The investment objectives and policies of certain Investment Options are similar
to the  investment  objectives  and policies of other  portfolios  that the same
investment advisers manage. Although the objectives and policies may be similar,
the investment results of the Investment Options may be higher or lower than the
results of such portfolios.  The investment advisers cannot guarantee,  and make
no  representation,  that the investment  results of similar  Investment Options
will be comparable  even though the Investment  Options have the same investment
advisers and objectives.

We offer other variable annuity Contracts that may invest in the same Investment
Options.  These  Contracts may have  different  charges and may offer  different
benefits  more  suitable  to  your  needs.  For  more  information  about  these
Contracts, please contact us at the USAllianz Service Center.

The following is a list of the Investment  Options available under the Contract,
the  investment  advisers  and  sub-advisers  for each  Investment  Option,  the
investment  objectives for each Investment Option and the primary investments of
each Investment Option.

<PAGE>
<TABLE>
<CAPTION>
                                                     INVESTMENT OPTIONS
------------------------------------------------------------------------------------------------------------------------------------
                                                      ASSET CATEGORIES
                                             -----------------------------------
<S>                        <C>                <C> <C><C> <C> <C> <C>  <C><C><C><C>  <C>                   <C>

Investment Management      Investment         SB  S  CE  IT  HB  IE   L  L  S  M    Objective(s)          Primary Investments
Company                    Option             ho  p  aq  ne  io  nq   a  a  m  i
----------------------                        on  e  su  tr  gn  tu   r  r  a  d
                                              rd  c  hi  em  hd  ei   g  g  l
   Adviser/Sub-Adviser                        ts  i   v  r    s  rt   e  e  l  C
                                              -   a   a  mB  Y   ny            a
                                              T   l   l  eo  i   a    V  G  C  p
                                              e   t   e  dn  e   t    a  r  a
                                              r   y   n  id  l   i    l  o  p
                                              m       t  as  d   o    u  w
                                                         t       n    e  t
                                                         e       a       h
                                                                 l
----------------------  --------------------- --- -- --- --- --- --- -- -- -- --  ------------------- ------------------------------
AIM                     USAZ AIM Basic Value                         X            Long-term growth of   At least 65% of total assets
o  managed by           Fund                                                      capital               in equity securities of U.S.
   USAllianz Advisers,                                                                                  issuers that have market
   LLC/ A I M Advisors,                                                                                 capitalizations of greater
   Inc.                                                                                                 than $500 million and that
                                                                                                        the portfolio managers
                                                                                                        believe to be undervalued
                        --------------------- --- -- --- --- --- --- -- -- -- --  ------------------- ------------------------------
                        USAZ AIM Blue Chip                           X            Long-term growth of   At least 65% of total assets
                        Fund                                                      capital with a        in the common stocks of blue
                                                                                  secondary objective   chip companies
                                                                                  of current income
                        --------------------- --- -- --- --- --- --- -- -- -- --  ------------------- ------------------------------
                        USAZ AIM Dent                                   X         Long-term growth of   Investment in securities of
                        Demographic Trends                                        capital               companies that are likely to
                        Fund                                                                            benefit from changing
                                                                                                        demographic, economic and
                                                                                                        lifestyle trends. May invest
                                                                                                        up to 25% of total assets in
                                                                                                        foreign securities of which
                                                                                                        no more than 15% of its
                                                                                                        total assets may be invested
                                                                                                        in securities of companies
                                                                                                        domiciled in developing
                                                                                                        countries.
                        --------------------- --- -- --- --- --- --- -- -- -- --  ------------------- ------------------------------
                        USAZ AIM                                  X               Long-term growth of   At least 70% of net assets
                        International Equity                                      capital               in marketable equity
                        Fund                                                                            securities of foreign
                                                                                                        companies that are listed on
                                                                                                        a recognized foreign
                                                                                                        securities exchange or
                                                                                                        traded in a foreign
                                                                                                        over-the-counter market
----------------------  --------------------- --- -- --- --- --- --- -- -- -- --  ------------------- ------------------------------
ALLIANCE CAPITAL        USAZ Alliance Capital                        X            Income and long-term  At least 65% in dividend
o  managed by USAllianz Growth and Income                                         growth of capital     paying stocks of large
   Advisers, LLC/       Fund                                                                            well-established "blue
   Alliance Capital                                                                                     chip" companies
                        --------------------- --- -- --- --- --- --- -- -- -- --  ------------------- ------------------------------
                        USAZ Alliance  Capital                          X         Long-term growth of   At least 80% of net assets
                        Large Cap Growth Fund                                     capital               in equity securities of U.S.
                                                                                                        companies judged by adviser
                                                                                                        likely to achieve superior
                                                                                                        earnings growth.
                        --------------------- --- -- --- --- --- --- -- -- -- --  ------------------- ------------------------------
                        USAZ Alliance Capital     X                               Superior long-term    At least 80% of assets in
                        Technology Fund                                           growth of capital     securities of companies
                                                                                                        involved with innovative
                                                                                                        technologies
----------------------  --------------------- --- -- --- --- --- --- -- -- -- --  ------------------- ------------------------------
DAVIS                   Davis VA Financial        X                               Growth of capital     At least 65% in common stock
o  managed by Davis     Portfolio                                                                       of companies "principally
   Advisors                                                                                             engaged" in financial
                                                                                                        services
                        --------------------- --- -- --- --- --- --- -- -- -- --  ------------------- ------------------------------
                        Davis VA  Value                              X            Growth of capital     Common stock of U.S.
                        Portfolio                                                                       companies with market
                                                                                                        capitalizations of at
                                                                                                        least $5 billion, which
                                                                                                        adviser believes are of
                                                                                                        high quality and whose
                                                                                                        shares are selling at
                                                                                                        attractive prices, stocks
                                                                                                        are selected with the
                                                                                                        intention of holding them
                                                                                                        for the long term
----------------------  --------------------- --- -- --- --- --- --- -- -- -- --  ------------------- ------------------------------
DREYFUS                 Dreyfus Small Cap                                  X      Match performance     Invests in a representative
o  managed by The       Stock Index Fund                                          of the Standard &     sample of stocks included in
   Dreyfus Corporation                                                            Poor's Small Cap      the S&P Small Cap 600 Index,
                                                                                  600 Index             and in futures whose
                                                                                                        performance is related to
                                                                                                        the index, rather than
                                                                                                        attempt to replicate the
                                                                                                        index
                        --------------------- --- -- --- --- --- --- -- -- -- --  ------------------- ------------------------------
                        Dreyfus Stock Index                             X         Match total return    Invests in all 500 stocks in
                        Fund                                                      of the S&P 500        the S&P 500 in proportion to
                                                                                  Composite Stock       their weighting in the index
                                                                                  Price Index
----------------------  --------------------- --- -- --- --- --- --- -- -- -- --  ------------------- ------------------------------
FRANKLIN TEMPLETON      Franklin Global           X                               Capital               At least 80% of net assets
o  managed by           Communications                                            appreciation and      in investments of
   Franklin             Securities Fund                                           current income        communications companies
   Advisers, Inc.
                        --------------------- --- -- --- --- --- --- -- -- -- --  ------------------- ------------------------------
                        Franklin Growth and                          X            Capital               At least 65% of total assets
                        Income Securities Fund                                    appreciation, with    in broadly diversified
                                                                                  current income as a   portfolio of equity
                                                                                  secondary goal        securities the adviser
                                                                                                        considers financially
                                                                                                        strong, but undervalued by
                                                                                                        the market
                        --------------------- --- -- --- --- --- --- -- -- -- --  ------------------- ------------------------------
                        Franklin High Income                  X                   High level of         At least 65% of total assets
                        Fund                                                      current income;       in debt securities offering
                                                                                  secondary goal is     high yield and expected
                                                                                  capital appreciation  total return
                        --------------------- --- -- --- --- --- --- -- -- -- --  ------------------- ------------------------------
                        Franklin Income                       X                   Maximize income       Investment in debt and
                        Securities Fund                                           while maintaining     equity securities, including
                                                                                  prospects for         high yield, lower-rated
                                                                                  capital appreciation  bonds
                        --------------------- --- -- --- --- --- --- -- -- -- --  ------------------- ------------------------------
                        Franklin Large Cap                              X         Capital appreciation  At least 80% of net assets
                        Growth Securities Fund                                                          in investments of large
                                                                                                        capitalization companies.
                                                                                                        For this Fund, large
                                                                                                        capitalization companies are
                                                                                                        those with market
                                                                                                        capitalization values within
                                                                                                        the top 50% of market
                                                                                                        capitalization values in the
                                                                                                        Russell 1000 Index at the
                                                                                                        time of purchase
                        --------------------- --- -- --- --- --- --- -- -- -- --  ------------------- ------------------------------
                        Franklin Real Estate      X                               Capital               At least 80% of net assets
                        Fund                                                      appreciation;         in investment of companies
                                                                                  secondary emphasis    operating in the real estate
                                                                                  on current income     sector
----------------------  --------------------- --- -- --- --- --- --- -- -- -- --  ------------------- ------------------------------
o  managed by Franklin  Franklin Rising                                        X  Long-term capital     At least 80% of net assets
   Advisory             Dividends Securities                                      appreciation; while   in investments of companies
   Services, LLC        Fund                                                      not a goal, capital   that have paid rising
                                                                                  preservation is a     dividends
                                                                                  secondary
                                                                                  consideration
----------------------  --------------------- --- -- --- --- --- --- -- -- -- --  ------------------- ------------------------------
o  managed by           Franklin Small Cap                                 X      Long-term capital     At least 80% of net assets
   Franklin             Fund                                                      growth                in investments of small
   Advisers, Inc.                                                                                       capitalization companies.
                                                                                                        For this Fund, small
                                                                                                        capitalization companies are
                                                                                                        those with market
                                                                                                        capitalization values not
                                                                                                        exceeding (i) $1.5 billion;
                                                                                                        or (ii) the highest market
                                                                                                        capitalization values in the
                                                                                                        Russell 2000 Index;
                                                                                                        whichever is greater at the
                                                                                                        time of purchase
----------------------  --------------------  --- -- --- --- --- --- -- -- -- --  ------------------- ------------------------------
o  managed by Franklin  Franklin Small Cap                                 X      Long term total       At least 80% of net assets
   Advisory             Value Securities Fund                                     return                in investments of small
   Services, LLC                                                                                        capitalization companies.
                                                                                                        For this Fund, small
                                                                                                        capitalization companies are
                                                                                                        those with market
                                                                                                        capitalization values not
                                                                                                        exceeding $2.5 billion in
                                                                                                        assets. The Fund invests in
                                                                                                        equity securities of
                                                                                                        companies the adviser
                                                                                                        believes are undervalued
----------------------  --------------------- --- -- --- --- --- --- -- -- -- --  ------------------- ------------------------------
o  managed by Franklin  Franklin U.S.          X                                  Income                At least 80% of its net
       Advisers, Inc.   Government Fund                                                                 assets in U.S. government
                                                                                                        securities. The Fund
                                                                                                        currently invests primarily
                                                                                                        in fixed and variable rate
                                                                                                        mortgage-backed securities
                        --------------------- --- -- --- --- --- --- -- -- -- --  ------------------- ------------------------------
                        Franklin Zero Coupon              X                       As high an            At least 80% of net assets
                        Fund 2005                                                 investment return     in zero coupon debt
                                                                                  as is consistent      securities. The Fund invests
                                                                                  with capital          primarily in U.S. Treasury
                                                                                  preservation          issued stripped securities
                        --------------------- --- -- --- --- --- --- -- -- -- --  ------------------- ------------------------------
                        Franklin Zero Coupon              X                       As high an            At least 80% of net assets
                        Fund 2010                                                 investment return     in zero coupon debt
                                                                                  as is consistent      securities. The Fund invests
                                                                                  with capital          primarily in U.S. Treasury
                                                                                  preservation          issued stripped securities
----------------------  --------------------- --- -- --- --- --- --- -- -- -- --  ------------------- ------------------------------
o  managed by Franklin  Mutual Discovery                          X               Capital appreciation  At least 65% of total assets
   Mutual               Securities Fund                                                                 in equity securities of
   Advisers, LLC                                                                                        companies of any nation the
                                                                                                        adviser believes are
                                                                                                        available at market prices
                                                                                                        less than their value, based
                                                                                                        on certain recognized or
                                                                                                        objective criteria
                                                                                                        (intrinsic value)
                        --------------------- --- -- --- --- --- --- -- -- -- --  ------------------- ------------------------------
                        Mutual Shares                                          X  Capital               At least 65% of total assets
                        Securities Fund                                           appreciation, with    in equity securities of
                                                                                  income as a           companies the adviser
                                                                                  secondary goal        believes are available at
                                                                                                        market prices less than
                                                                                                        their value, based on
                                                                                                        certain recognized or
                                                                                                        objective criteria
                                                                                                        (intrinsic value)
----------------------  --------------------- --- -- --- --- --- --- -- -- -- --  ------------------- ------------------------------
o  managed by           Templeton Developing      X                               Long-term capital     At least 80% of net assets
   Templeton  Asset     Markets Securities                                        appreciation          in emerging market
   Management, Ltd.     Fund                                                                            investments, typically
                                                                                                        located in the Asia-Pacific
                                                                                                        region, Eastern Europe,
                                                                                                        Central and South America,
                                                                                                        and Africa
----------------------  --------------------- --- -- --- --- --- --- -- -- -- --  ------------------- ------------------------------
o  managed by Templeton  Templeton Foreign                        X               Long-term capital     At least 80% of net asets in
   Investment            Securities Fund                                          growth                investments of issuers
   Counsel, LLC                                                                                         outside the U.S., including
                                                                                                        emerging markets
----------------------  --------------------- --- -- --- --- --- --- -- -- -- --  ------------------- ------------------------------
o  managed by           Templeton Growth                          X               Long-term capital     At least 65% of total assets
   Templeton            Securities Fund                                           growth                in the equity securities of
   Global  Advisors                                                                                     companies located anywhere
   Limited                                                                                              in the world, including
                                                                                                        those in the U.S. and
                                                                                                        emerging markets
----------------------  --------------------- --- -- --- --- --- --- -- -- -- --  ------------------- ------------------------------
o  managed by           USAZ Templeton                            X               Long-term capital     At least 80% of net assets
   USAllianz            Developed Markets Fund                                    appreciation          in equity securities of
   Advisers, LLC/                                                                                       companies located in any
   Templeton                                                                                            developed country outside
   Investment                                                                                           the U.S., with particular
   Counsel, LLC                                                                                         areas of interest in Western
                                                                                                        Europe, Australia, Canada
                                                                                                        New Zealand, Hong Kong,
                                                                                                        Japan, Bermuda and Singapore
----------------------  --------------------- --- -- --- --- --- --- -- -- -- --  ------------------- ------------------------------
JENNISON                Jennison 20/20 Focus                            X         Long-term growth of   Invests in up to 20 value
o  managed by           Portfolio                                                 capital               stocks and 20 growth stocks
   Prudential                                                                                           of mid-to-large size U.S.
   Investments Fund                                                                                     companies
   Management
   LLC/Jennison
   Associates, LLC
                        --------------------- --- -- --- --- --- --- -- -- -- --  ------------------- ------------------------------
                        SP Jennison                               X               Long-term growth of   Equity-related securities of
                        International Growth                                      capital               foreign issuers
                        Portfolio
                        --------------------- --- -- --- --- --- --- -- -- -- --  ------------------- ------------------------------
                        SP Strategic Partners                           X         Long-term growth of   At least 65% of total assets
                        Focused Growth                                            capital               in equity-related securities
                        Portfolio                                                                       of U.S. companies that the
                                                                                                        adviser believes to have
                                                                                                        strong capital appreciation
                                                                                                        potential
----------------------  --------------------- --- -- --- --- --- --- -- -- -- --  ------------------- ------------------------------
OPPENHEIMER             Oppenheimer Global                       X                Long-term capital     Securities - mainly common
o  managed by           Securities Fund/VA                                        appreciation          stocks, but also other
   Oppenheimer Funds,                                                                                   equity securities including
   Inc.                                                                                                 preferred stocks and
                                                                                                        securities convertible
                                                                                                        into common stock-of
                                                                                                        foreign issuers,
                                                                                                        "growth-type" companies,
                                                                                                        cyclical industries and
                                                                                                        special situations the
                                                                                                        adviser believes offer
                                                                                                        appreciation possibilities
                        --------------------- --- -- --- --- --- --- -- -- -- --  ------------------- ------------------------------
                        Oppenheimer High                     X                   High level of         High-yield fixed-income
                        Income Fund/VA                                            current income        securities of domestic and
                                                                                                        foreign issuers
                        --------------------- --- -- --- --- --- --- -- -- -- --  ------------------- ------------------------------
                        Oppenheimer Main                            X            High total return     Common stocks of U.S.
                        Street Growth &                                           (which includes       companies; other equity
                        Income Fund/VA                                            growth in the value   securities -- such as
                                                                                  of its shares as      preferred stocks and
                                                                                  well as current       securities convertible into
                                                                                  income)               common stocks; debt
                                                                                                        securities
----------------------  --------------------- --- -- --- --- --- --- -- -- -- --  ------------------- ------------------------------
o  managed by           USAZ Oppenheimer                                   X      Capital appreciation  Invests in companies that
   USAllianz Advisers,  Emerging Growth Fund                                                            have the potential to become
   LLC/Oppenheimer                                                                                      leaders in new emerging
   Funds, Inc.                                                                                          markets
----------------------  --------------------- --- -- --- --- --- --- -- -- -- --  ------------------- ------------------------------
PIMCO                   PIMCO VIT High Yield                  X                   Maximum total         At least 80% of assets in
o  managed by Pacific   Portfolio                                                 return, consistent    high-yield securities ("junk
   Investment                                                                     with preservation     bonds") rated below
   Management Company                                                             of capital and        investment grade, but at
   LLC                                                                            prudent investment    least "B" by Moody's or S&P
                                                                                  management
                        --------------------- --- -- --- --- --- --- -- -- -- --  ------------------- ------------------------------
                        PIMCO VIT StocksPLUS                            X         Total return          Substantially in S&P 500
                        Growth and Income                                         exceeding that of     derivatives, backed by a
                        Portfolio                                                 the S&P 500           portfolio of fixed income
                                                                                                        instruments
                        --------------------- --- -- --- --- --- --- -- -- -- --  ------------------- ------------------------------
                        PIMCO VIT Total                   X                       Maximum total         At least 65% of assets in
                        Return Portfolio                                          return, consistent    fixed income instruments of
                                                                                  with preservation     varying maturities
                                                                                  of capital and
                                                                                  prudent investment
                                                                                  management
----------------------  --------------------- --- -- --- --- --- --- -- -- -- --  ------------------- ------------------------------
o  managed by           USAZ PIMCO Growth &                          X            Long-term growth of   At least 65% of its total
   USAllianz Advisers,  Income Fund                                               capital ; secondary   assets in common stocks of
   LLC/ Allianz                                                                   emphasis on income    companies with market
   Dresdner Asset                                                                                       capitalizations of more than
   Management of                                                                                        $1 billion at the time of
   America L.P.                                                                                         investment
                        --------------------- --- -- --- --- --- --- -- -- -- --  ------------------- ------------------------------
                        USAZ PIMCO                                             X  Long-term growth of   At least 65% of total assets
                        Renaissance Fund                                          capital and income    in common stocks of
                                                                                                        companies with below-average
                                                                                                        valuations whose business
                                                                                                        fundamentals are expected to
                                                                                                        improve
                        --------------------- --- -- --- --- --- --- -- -- -- --  ------------------- ------------------------------
                        USAZ PIMCO Value Fund                        X            Long-term growth of   At least 65% of its total
                                                                                  capital and income    assets in common stocks of
                                                                                                        companies with market
                                                                                                        capitalizations of more than
                                                                                                        $5 billion at the time of
                                                                                                        investment
----------------------  --------------------- --- -- --- --- --- --- -- -- -- --  ------------------- ------------------------------
SELIGMAN                Seligman Small-Cap                                 X      Long-term capital     At least 80% of net assets
o  managed by J. & W.   Value Portfolio                                           appreciation          in common stocks of "value"
   Seligman & Co.                                                                                       companies with small market
   Incorporated                                                                                         capitalization (up to $2
                                                                                                        billion) at the time of
                                                                                                        purchase by the portfolio
----------------------  --------------------- --- -- --- --- --- --- -- -- -- --  ------------------- ------------------------------

USAZ                    USAZ Money Market Fund        X                           Current income        At least 80% of total assets
o  managed by USAllianz                                                           consistent with       in portfolio of high
   Advisers, LLC/                                                                  stability of         quality, money market
   Prudential Investment                                                           principal            investments
   Management, Inc.
----------------------  --------------------- --- -- --- --- --- --- -- -- -- --  ------------------- ------------------------------


VAN KAMPEN              USAZ Van Kampen                                        X  Capital growth        At least 65% of total assets
o  managed by USAllianz Aggressive Growth Fund                                                          in common stocks and other
   Advisers, LLC/Van                                                                                    equity securities the
   Kampen Investment                                                                                    adviser believes have an
   Advisory Corp.                                                                                       above-average potential for
                                                                                                        capital growth
----------------------  --------------------- --- -- --- --- --- --- -- -- -- --  ------------------- ------------------------------
o  managed by USAllianz USAZ Van Kampen                              X            Capital growth and    Invests primarily
   Advisers, LLC/Van    Comstock Fund                                             income                in common stocks
   Kampen Asset
   Management Inc.
                        --------------------- --- -- --- --- --- --- -- -- -- --  ------------------- ------------------------------
                        USAZ Van Kampen                                 X         Capital               Invests primarily
                        Emerging Growth Fund                                      appreciation          in portfolios of common
                                                                                                        stocks of emerging growth
                                                                                                        companies
                        --------------------- --- -- --- --- --- --- -- -- -- --  ------------------- ------------------------------
                        USAZ Van Kampen                              X            Income and            Invests primarily
                        Growth and Income Fund                                    long-term growth of   in income-producing
                                                                                  capital               equity securities, including
                                                                                                        common stocks and
                                                                                                        convertible securities; also
                                                                                                        in non-convertible preferred
                                                                                                        stocks and debt securities
                                                                                                        rated "investment grade"
----------------------  --------------------- --- -- --- --- --- --- -- -- -- --  ------------------- ------------------------------
o  managed by USAllianz USAZ Van Kampen                                        X  Capital growth        Invests primarily
   Advisers, LLC/Van    Growth Fund                                                                     in common stocks and other
   Kampen Investment                                                                                    equity securities of growth
   Advisory Corp.                                                                                       companies; also in preferred
                                                                                                        stocks and securities
                                                                                                        convertible into common
                                                                                                        stocks or other equity
                                                                                                        securities
----------------------  --------------------- --- -- --- --- --- --- -- -- -- --  ------------------- ------------------------------
</TABLE>

Shares of the  Investment  Options  may be offered in  connection  with  certain
variable  annuity  contracts  and variable  life  insurance  policies of various
insurance  companies  which  may or may not be  affiliated  with  Allianz  Life.
Certain  Investment  Options may also be sold directly to pension and retirement
plans that qualify under Section 401 of the Internal  Revenue Code. As a result,
a material conflict of interest may arise between insurance companies, owners of
different types of contracts and retirement  plans or their  participants.  Each
Investment  Option's  Board of Directors  will monitor for the  existence of any
material conflicts, and determine what action, if any, should be taken.

Allianz Life may enter into certain  arrangements  under which it is compensated
by the Investment  Options'  advisers,  distributors  and/or  affiliates for the
administrative  services which it provides to the Investment Options. The amount
of the  compensation  usually is based on the aggregate assets of the Investment
Options  or  other  investment  portfolios  from  Contracts  that  we  issue  or
administer.  Some  advisers may pay us more or less than others.  The amounts we
receive under these arrangements may be significant.  In addition, our affiliate
USAllianz Investor Services,  LLC, the principal  underwriter for the Contracts,
will  receive  12b-1  fees  deducted  from  certain   Investment  Option  assets
attributable to the Contract for providing  distribution and shareholder support
services  to some  Investment  Options.  Because  12b-1  fees are paid out of an
Investment Options' assets on an ongoing basis, over time they will increase the
cost of an investment in Investment Option shares.

substitution and limitation on further investments


We may substitute  another  Investment Option for one of the Investment  Options
you  have  selected.   Substitutions  may  be  made  with  respect  to  existing
investments,  the  investment  of  future  Purchase  Payments,  or both.  New or
substitute  Investment  Options may have different fees and expenses,  and their
availability  may be  limited to certain  classes  of  purchasers.  We may limit
further  investment in or transfers to an Investment  Option if marketing or tax
considerations  or  investment   considerations   warrant.  We  also  may  close
Investment  Options to allocations of Purchase  Payments or Contract  value,  or
both,  at any time and at our sole  discretion.  The fund  companies  which sell
shares of the Investment Options to us pursuant to participation  agreements may
terminate those  agreements and discontinue  offering their shares to us. We may
not  substitute  any shares without notice to you and prior approval of the SEC,
to the extent required by the Investment Company Act of 1940 or other applicable
law.


TRANSFERS


You  can  transfer  money  among  the  Investment  Choices  subject  to  certain
restrictions.  Transfers may be subject to a transfer fee and  transfers  from a
Fixed Account  Investment Choice may be subject to a MVA. Allianz Life currently
allows you to make as many transfers as you want to each year.  Allianz Life may
change this  practice in the future.  However,  this product is not designed for
professional  market timing  organizations  or other  persons using  programmed,
large, or frequent  transfers.  Such activity may be disruptive to an Investment
Choice. We reserve the right to reject any specific Purchase Payment  allocation
or transfer  request from any person,  if in the  Investment  Option  investment
adviser's or Allianz Life's  judgment,  an Investment  Choice would be unable to
invest  effectively in accordance  with its investment  objectives and policies.
Excess trading activity can disrupt  management  strategy and increase expenses,
which are borne by all Contract Owners who allocated  Purchase  Payments or made
transfers to the Investment Choice, regardless of their activity.

Your Contract provides that you can make 3 transfers every Contract year without
charge.  However,  we currently  permit you to make 12 transfers  every Contract
year without charge.


The following applies to any transfer:


1)   The minimum amount which you can transfer is $1,000 ($500 in New Jersey) or
     your entire value in the Investment  Choice,  if less. This  requirement is
     waived if the  transfer is in  connection  with the Dollar  Cost  Averaging
     Program or Flexible Rebalancing (which are described below).


2)   We may  choose  to not  allow you to make  transfers  during  the free look
     period.


3)   Your request for a transfer must clearly state:

|X|      which Investment Choice is involved in the transfer; and


|X|      how much the transfer is for.


4)  Transfers from a Fixed Account Investment Choice may be subject to a MVA.



5)   You cannot make any transfers within 7 calendar days prior to the date your
     first Annuity Payment is due.


6)   After the Income  Date,  you may not make a transfer  from a fixed  Annuity
     Option to a variable Annuity Option.

7)   After the Income Date, you can transfer from a variable Annuity Option to a
     fixed Annuity Option.


9)   Your right to make transfers is subject to  modification if we determine in
     our sole opinion that the  exercising  of the right by one or more Contract
     Owners  is, or would  be, to the  disadvantage  of other  Contract  Owners.
     Restrictions  may be applied in any manner  reasonably  designed to prevent
     any use of the transfer  right which we consider to be to the  disadvantage
     of other Contract Owners.  A modification  could be applied to transfers to
     or from one or more of the Investment Choices and could include, but is not
     limited to:


o    the requirement of a minimum time period between each transfer;


o    not accepting a transfer request from a registered representative acting on
     behalf of more than one Contract Owner; or

o    limiting  the dollar  amount that you may transfer  between the  Investment
     Choices at any one time; or


o        not accepting transfer requests received by telephone or fax.

If we reject a transfer, we will call your registered  representative to request
alternate   instructions.   If  we  are  unable  to  contact   your   registered
representative,  we will contact you directly.  If we reject a transfer, we will
send you a written notification within 5 business days.

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


Telephone Transfers.
You can make transfers by telephone or by fax. We may allow
you to  authorize  someone  else to make  transfers  by telephone or fax on your
behalf. If you own the Contract with a Joint Owner,  unless you instruct Allianz
Life otherwise, we will accept instructions from either one of you. Allianz Life
will use  reasonable  procedures  to confirm  that  instructions  given to us by
telephone are genuine.  If we do not use such  procedures,  we may be liable for
any losses due to  unauthorized  or fraudulent  instructions.  Allianz Life tape
records  all  telephone  instructions.  We reserve the right to  discontinue  or
modify the telephone/fax transfer privilege at any time and for any reason.

We do not currently accept transfer  instructions via e-mail, web site, or other
electronic communications. This service may be available in the future.


Please note that telephone, fax and/or electronic  communications may not always
be available.  Any telephone,  fax and/or computer system,  whether it is yours,
your service  provider's,  or your registered  representative's,  can experience
outages or slowdowns  for a variety of reasons.  These  outages or slowdowns may
delay  or  prevent  our  processing  of your  request.  Although  we have  taken
precautions  to help our systems  handle heavy use, we cannot  promise  complete
reliability  under all  circumstances.  If you are  experiencing  problems,  you
should make your transfer by writing to our service center.


Excessive  Trading.
We may allow you to give third  parties the right to effect
transfers on your behalf. However, when the same third party makes transfers for
Contract  Owners,  the  result can be  simultaneous  transfers  involving  large
amounts of Contract value. Such transfers can disrupt the orderly  management of
the  Investment  Choices,  can result in higher  costs to Contract  Owners,  and
generally are not compatible with the long-range  goals of Contract  Owners.  We
believe that such simultaneous  transfers effected by such third parties may not
be in the best interests of all  shareholders of the Investment  Options and the
management of the  Investment  Options share this  position.  Therefore,  we may
place  restrictions  designed  to prevent  any use of a transfer  right which we
consider to be to the disadvantage of the Contract Owners.


DOLLAR COST AVERAGING PROGRAM


The Dollar Cost Averaging  Program allows you to  systematically  transfer a set
amount of money each month or quarter  from any one  Investment  Choice to other
Investment  Choice.  The  Investment  Option(s) you transfer from may not be the
Investment Option(s) you transfer to in this program. By allocating amounts on a
regularly  scheduled  basis,  as opposed to  allocating  the total amount at one
particular   time,  you  may  be  less  susceptible  to  the  impact  of  market
fluctuations.  You may only  participate in this program during the Accumulation
Phase.

There may be two Dollar Cost Averaging  options.  The first option is the Dollar
Cost Averaging  Fixed Option.  It may be available for either 6 or 12 months for
both initial and additional Purchase Payments. You will receive a fixed interest
rate  guaranteed for the period by Allianz Life. The Dollar Cost Averaging Fixed
Option may not be available in your state.

The second  option that may be available is the Standard  Dollar Cost  Averaging
Option.  It requires a $1,500 minimum  investment and participation for at least
six months (or two quarters).

All Dollar Cost  Averaging  transfers  will be made on the 10th day of the month
unless that day is not a business  day. If it is not,  then the transfer will be
made the next business day. You can elect either program by properly  completing
the Dollar Cost Averaging form provided by Allianz Life.


Your participation in the program will end when any of the following occurs:


    o the number of desired transfers has been made;

    o you do not have enough money in the Investment Choices to make the
      transfer (if less money is available, that amount will be dollar cost
      averaged and the program will end);

    o you request to terminate the program (your request must be received by us
      by the first of the month to terminate that month); or


    o the Contract is terminated.

If you  participate  in the Dollar Cost  Averaging  Program,  the transfers made
under the program are not taken into account in determining any transfer fee. We
reserve the right to discontinue or modify the Dollar Cost Averaging  program at
any time and for any reason.

Flexible Rebalancing


Once your money has been invested, the performance of the Investment Options may
cause your chosen allocation to shift.  Flexible Rebalancing is designed to help
you  maintain  your  specified  allocation  mix among the  different  Investment
Options. The Fixed Account is not part of Flexible  Rebalancing.  You can direct
us to readjust your Contract  value on a quarterly,  semi-annual or annual basis
to return to your original Investment Option allocations.  Flexible  Rebalancing
transfers  will be made on the 20th day of the  month  unless  that day is not a
business  day.  If it is not,  then the  transfer  will be made on the  previous
business day. If you  participate  in Flexible  Rebalancing,  the transfers made
under the  program  are not  currently  taken into  account in  determining  any
transfer  fee.  We  reserve  the right to  discontinue  or modify  the  Flexible
Rebalancing program at any time and for any reason.


FINANCIAL ADVISERS -- ASSET ALLOCATION PROGRAMS


Allianz  Life  understands  the  importance  of advice from a financial  adviser
regarding your investments in the Contract (asset allocation  program).  Certain
investment  advisers  have  made  arrangements  with us to make  their  services
available to you.  Allianz Life has not made any  independent  investigation  of
these advisers and is not endorsing such programs.  You may be required to enter
into an advisory  agreement with your  investment  adviser to have the fees paid
out of your Contract during the  Accumulation  Phase.  Allianz Life does not set
the  amount of the fees  charged  or  receive  any  portion of the fees from the
adviser. Allianz Life does not review or approve the actions of any adviser, and
does not assume any responsibility for these actions.

Allianz Life will,  pursuant to an agreement with you, make a partial withdrawal
from the  value  of your  Contract  to pay for the  services  of the  investment
adviser.  If the Contract is Non-Qualified,  the withdrawal will be treated like
any other  distribution  and may be  included  in gross  income for  federal tax
purposes  and, if you are under age 59 1/2, may be subject to a tax penalty.  If
the Contract is  Qualified,  the  withdrawal  for the payment of fees may not be
treated as a taxable  distribution  if certain  conditions  are met.  You should
consult a tax adviser  regarding  the tax treatment of the payment of investment
adviser fees from your Contract.


VOTING PRIVILEGES

Allianz Life is the legal owner of the Investment Option shares.  However,  when
an Investment  Option solicits  proxies in conjunction  with a shareholder  vote
which  affects  your  investment,  Allianz  Life will  obtain from you and other
affected  Contract Owners  instructions as to how to vote those shares.  When we
receive those instructions,  we will vote all of the shares we own in proportion
to those instructions.  This will also include any shares that Allianz Life owns
on its own behalf.  Should Allianz Life determine that it is no longer  required
to comply with the above, we will vote the shares in our own right.

SUBSTITUTION

Allianz Life may substitute one of the Investment Options you have selected with
another  Investment  Option.  We would not do this without the prior approval of
the Securities and Exchange Commission,  to the extent legally required. We will
give  you  notice  of our  intention  to do  this.  We may  also  limit  further
investment  in  or  transfers  to an  Investment  Option  if  marketing  or  tax
considerations or investment considerations warrant.


5.THE FIXED ACCOUNT
--------------------------------------------------------------------------------



Any amounts that you allocate to any available Fixed Account  Investment  Choice
or a fixed Annuity  Payment become part of the Fixed  Account,  which is part of
our general  account.  The general  account  consists of all of our assets other
than those in our separate accounts. We have complete ownership of all assets in
our general account and we use these assets to support our insurance and annuity
obligations other than those funded by our separate  accounts.  These assets are
subject  to  our  general  liabilities  from  business  operations.  Subject  to
applicable law, we have sole discretion over the investment of the assets of the
general account.

If you allocate money to a fixed interest  Investment  Choice, we guarantee both
the principal and the interest on amounts you allocate to the Fixed Account.  We
will credit  interest at an  effective  annual rate of at least 3% in the manner
described in the Contract.  The rate we credit is  independent of the investment
experience  of the  Fixed  Account.  From  time  to time  we  may,  in our  sole
discretion,  offer  guaranteed  interest  rates higher than the 3% minimum.  You
assume the risk that the interest we credit to the Fixed Account as described in
the Contract may not exceed the minimum guaranteed rate of 3%.

We have not  registered  the fixed  account as an  investment  company under the
Investment  Company Act of 1940,  nor have we registered  interests in the fixed
account under the Securities Act of 1933. As a result,  the SEC has not reviewed
the disclosures in this prospectus relating to the fixed account.


We do not currently offer any Fixed Account Investment Choices.  However, we may
offer  these  choices  or change the terms of the Fixed  Account in the  future.
Please contact us for the most current terms.


6. EXPENSES
--------------------------------------------------------------------------------


There are charges and other expenses associated with the Contract that will
reduce your investment return. These charges and expenses are:


Separte Account Expenses

Each day, we make a deduction for Separate Account expenses.  We do this as part
of our calculation of the value of the Accumulation Units and the Annuity Units.
The Separate Account expenses have two parts:


1) the mortality and expense risk charge, and

2) the administrative charge.

The total  Separate  Account  expenses*  are  reflected in the tables below as a
percentage of average annual account value.

<TABLE>
<CAPTION>
<S>                          <C>                               <C>

                              Contracts without a GMIB         Contracts with a GMIB
                               M&E      Admin.               M&E      Admin.
For New Contracts:           Charge     Charge     Total    Charge    Charge     Total
------------------           ------     ------     -----    ------    ------     -----
     Traditional GMDB         1.60%      0.15%     1.75%    1.75%      0.15%     1.90%
     Enhanced GMDB            1.90%      0.15%     2.05%    2.00%      0.15%     2.15%
     EP GMDB                  1.90%      0.15%     2.05%    2.05%      0.15%     2.20%


                              Contracts without a GMIB         Contracts with a GMIB
                               M&E      Admin.               M&E      Admin.
For Old Contracts:           Charge     Charge     Total    Charge    Charge     Total
------------------           ------     ------     -----    ------    ------     -----
     Without the EDB          1.34%     0.15%     1.49%     1.64%      0.15%     1.79%
     Endorsement

        DB Option 1 or
     DB Option 2              1.34%      0.15%     1.49%    1.64%      0.15%     1.79%
     EP GMDB                  1.44%      0.15%     1.59%    1.74%      0.15%     1.89%

</TABLE>


    * Some or all of he guaranteed benefits may not be available in all states.

During the Payout Phase the total Separate  Account annual expenses are equal on
an  annual  basis  to  1.40%  for Old  Contracts  and  1.75%  for New  Contracts
regardless of the options selected.




Mortality and Expense Risk Charge. We deduct a mortality and expense risk charge
which  varies  depending  upon the death and income  benefits  you choose.  This
charge  compensates us for all the insurance  benefits provided by your Contract
(for example,  our contractual  obligation to make Annuity  Payments,  the death
benefits,  certain expenses  related to the Contract,  and for assuming the risk
(expense risk) that the current  charges will be  insufficient  in the future to
cover the cost of  administering  the  Contract).  During the Payout Phase,  the
charge is equal on an annual basis to 1.60% for New  Contracts and 1.25% for Old
Contracts of the average  daily value of the Contract  invested in an Investment
Option.  The amount of the  mortality and expense risk charge is less during the
Payout Phase because we do not pay a separate  death benefit (other than what is
provided under your Annuity Option) if you die during the Payout Phase.


If the mortality and expense risk charges are sufficient to cover such costs and
risks,  any excess will be profit to us. We anticipate  making such a profit and
using it to cover distribution expenses as well as the cost of providing certain
features under the Contract.

Administrative Charge. This charge is equal, on an annual basis, to 0.15% of the
average daily value of the Contract invested in an Investment  Option. We assess
this charge  during both the  Accumulation  and the Payout  phase.  This charge,
together with the contract maintenance charge (which is explained below), is for
all the expenses  associated with the  administration  of the Contract.  Some of
these  expenses  include:  preparation  of the Contract,  confirmations,  annual
statements,   maintenance  of  Contract  records,  personnel  costs,  legal  and
accounting fees, filing fees, and computer and systems costs.

CONTRACT MAINTENANCE CHARGE

On each Contract  anniversary,  Allianz Life deducts $30 from your Contract as a
contract  maintenance  charge.  The  fee is  assessed  on the  last  day of each
Contract year. (In South Carolina, we will waive the contract maintenance charge
that is to be deducted after the 20th Contract  anniversary.) This charge is for
administrative expenses (see above). This charge cannot be increased.


We will not deduct this charge during the Accumulation Phase if your Contract
value is at least $50,000 at the time we are to deduct the charge. If you own
more than one Contract under this prospectus, we will determine the total value
of all your Contracts. If the total value of all your Contracts registered under
the same social security number is at least $50,000, we will not assess the
contract maintenance charge (except in New Jersey). Currently, we also waive the
charge during the Payout Phase if your Contract value on the Income Date is at
least $50,000. If the Contract is owned by a non-individual (e.g., a qualified
plan or trust), We will look to the Annuitant to determine if we will assess the
charge.



If you make a  complete  withdrawal  from  your  Contract,  we will  deduct  the
contract maintenance charge. If we deduct the contract maintenance charge during
the Payout Phase, we collect it monthly out of each Annuity Payment.

Contingent Deferred Sales Charge

Withdrawals  may be subject to a contingent  deferred  sales charge.  During the
Accumulation  Phase, you can make  withdrawals from your Contract.  Allianz Life
keeps  track of each  Purchase  Payment you make.  The amount of the  contingent
deferred  sales  charge  depends  upon the  length  of time  since you made your
Purchase Payment. The charge is:


     Complete years since        Charge as a
       Purchase Payment      percentage of each
            receipt      purchase payment withdrawn
---------------------------------------------------
              0-1                    6%
              1-2                    6%
              2-3                    6%
              3-4                    5%
              4-5                    4%
              5-6                    3%
              6-7                    2%
              7+                     0%


However, after we have had a Purchase Payment for 7 full years, there is no
charge when you withdraw that Purchase Payment. For purposes of the contingent
deferred sales charge, Allianz Life treats withdrawals as coming from the oldest
Purchase Payments first. Allianz Life does not assess the contingent deferred
sales charge on any payments paid out as Annuity Payments or as death benefits.


In the state of Washington,  the contingent deferred sales charge will be waived
beginning with the later of the first Contract  anniversary after you attain age
70 or the 10th Contract anniversary.

NOTE:  For tax purposes,  withdrawals  are considered to have come from the last
money you put into the Contract. Thus, for tax purposes, earnings are considered
to come out first.


Partial Withdrawal Privilege. In the sales literature this is referred to as the
"15%  Withdrawal  Privilege".  Each Contract year after the first Contract year,
you can make multiple  withdrawals  up to 15% of your Contract value and we will
not deduct a contingent  deferred sales charge from the 15% you take out. If you
make a  withdrawal  of more  than the free  amount,  it will be  subject  to the
contingent deferred sales charge. If you do not withdraw the full 15% in any one
Contract year, you may not carry over the remaining percentage amount to another
Contract year.


You may also elect to participate in the  Systematic  Withdrawal  Program or the
Minimum  Distribution  Program.  These  programs  allow you to make  withdrawals
without the  deduction of the  contingent  deferred  sales charge under  certain
circumstances.  See Section 7 -- "Access to Your Money" for a description of the
Systematic Withdrawal Program and the Minimum Distribution Program.


Waiver  of   Contingent   Deferred   Sales  Charge   Benefits.   Under   certain
circumstances,  after the first  Contract  year, we will permit you to take your
money out of the Contract without deducting a contingent  deferred sales charge:
1) if you become confined to a nursing home for at least 90 days;


2)   if you become  terminally  ill,  which is defined as life  expectancy of 12
     months or less (a full withdrawal of the Contract
     will be required); or

3)   if you become totally disabled for at least 90 consecutive days.

The waiver will not apply if any of the above conditions existed on the date
your Contract was issued.

Also, after the first year, if you become unemployed for at least 90 consecutive
days, you can take up to 50% of your Contract value out of the Contract  without
incurring a contingent  deferred  sales charge.  This benefit is available  only
once during the life of the Contract.  You may not use both this benefit and the
15% free withdrawal amount in the same Contract year.

These benefits vary from state to state or may not be available in your state.
(Check with your registered representative.)


Reduction or Elimination of the Contingent  Deferred Sales Charge. We may reduce
or  eliminate  the  amount of the  contingent  deferred  sales  charge  when the
Contract  is sold  under  circumstances  that  reduce its sales  expenses.  Some
examples are: if there is a large group of  individuals  that will be purchasing
the Contract or a prospective  purchaser already had a relationship with Allianz
Life.  Allianz Life may choose not to deduct a contingent  deferred sales charge
under a Contract  issued to an officer,  director or employee of Allianz Life or
any of its affiliates.  Also, Allianz Life may reduce or not deduct a contingent
deferred sales charge when a Contract is sold by an agent of Allianz Life to any
members of his or her immediate family and the commission is waived.  We require
our prior approval for any reduction or  elimination of the contingent  deferred
sales charge.


TRANSFER FEE


You can currently make 12 free  transfers  every Contract year. If you make more
than 12 transfers a year,  we will deduct a transfer fee of the lesser of $25 or
2% of the amount  transferred for each additional  transfer.  Transfers from the
Fixed  Account  Investment  Choices may be subject to a Market Value  Adjustment
(MVA) which may  increase or decrease the amount  transferred.  The transfer fee
will be deducted from the Investment  Choice from which the transfer is made. If
the entire amount in the account is  transferred,  then the transfer fee will be
deducted  from the amount  transferred.  If the  transfer is from or to multiple
accounts,  it will be treated as a single  transfer.  Any  transfer  fee will be
deducted  proportionally  from the source account if less than the entire amount
in the  account is  transferred.  If the  transfer  is part of the  Dollar  Cost
Averaging  Program  or  Flexible  Rebalancing,  it will not  currently  count in
determining the transfer fee.


PREMIUM TAXES

Some  states  and other  governmental  entities  (e.g.,  municipalities)  charge
premium taxes or similar taxes.  Allianz Life is responsible  for the payment of
these taxes.  We will make a deduction  from the value of the Contract for them.
Some of these  taxes are due when the  Contract  is issued,  others are due when
Annuity  Payments begin. It is Allianz Life's current practice to not charge you
for these taxes  until you die,  Annuity  Payments  begin or you make a complete
withdrawal.  Allianz Life may discontinue this practice in the future and assess
the charge when the tax is due. Premium taxes generally range from 0% to 3.5% of
the Purchase Payment, depending on the state.

INCOME TAXES

Allianz  Life  reserves  the right to deduct from the  Contract any income taxes
which it may incur  because  of the  Contract.  Currently,  Allianz  Life is not
making any such deductions.

INVESTMENT OPTION EXPENSES

There are  deductions  from the assets of the  various  Investment  Options  for
operating expenses  (including  management fees), which are described in the Fee
Table in this prospectus and the Investment Option prospectuses.


7. TAXES
--------------------------------------------------------------------------------


NOTE: Allianz Life has prepared the following  information on taxes as a general
discussion of the subject.  It is not intended as tax advice. You should consult
your own tax adviser  about your own  circumstances.  Allianz  Life has included
additional   information   regarding   taxes  in  the  Statement  of  Additional
Information.

ANNUITY CONTRACTS IN GENERAL

Annuity  contracts are a means of setting aside money for future needs - usually
retirement.  Congress  recognized  how important  saving for  retirement was and
provided special rules in the Internal Revenue Code (Code) for annuities.

Basically, these rules provide that you will not be taxed on any earnings on the
money  held in your  annuity  Contract  until  you take the money  out.  This is
referred to as Tax Deferral. There are different rules regarding how you will be
taxed  depending  upon how you take the  money  out and the type of  Contract  -
Qualified or Non-Qualified (see following sections).

When a  Non-Qualified  Contract  is  owned  by a  non-natural  person  (e.g.,  a
corporation or certain other entities other than a trust holding the Contract as
an agent for a natural person), the Contract will generally not be treated as an
annuity  for tax  purposes.  This means that the  Contract  may not  receive the
benefits of Tax Deferral. Income may be taxed as ordinary income every year.

QUALIFIED AND NON-QUALIFIED CONTRACTS

If you purchase the Contract under a Qualified  plan,  your Contract is referred
to  as a  Qualified  Contract.  Examples  of  Qualified  plans  are:  Individual
Retirement Annuities (IRAs),  Tax-Sheltered  Annuities (sometimes referred to as
403(b) contracts),  and pension and  profit-sharing  plans, which include 401(k)
plans and H.R. 10 plans.  Qualified  Contracts  are subject to special tax rules
and the terms of the retirement plan itself. Adverse tax consequences may result
if  contributions,   distributions  and  transactions  in  connection  with  the
Qualified  Contracts  do not comply  with the law.  If you do not  purchase  the
Contract under a Qualified plan, your Contract is referred to as a Non-Qualified
Contract.

A Qualified  Contract will not provide any necessary or additional  Tax Deferral
if it is used to fund a  Qualified  plan  that  is Tax  Deferred.  However,  the
Contract has features and benefits  other than Tax Deferral  that may make it an
appropriate investment for a Qualified plan. You should consult your tax adviser
regarding these features and benefits prior to purchasing a Qualified Contract.

MULTIPLE CONTRACTS

The Code provides that multiple  Non-Qualified  deferred annuity contracts which
are  issued  within a calendar  year  period to the same  Contract  Owner by one
company or its  affiliates  are treated as one annuity  contract for purposes of
determining the tax consequences of any distribution.  Such treatment may result
in adverse tax  consequences,  including more rapid taxation of the  distributed
amounts from such combination of contracts. For purposes of this rule, contracts
received in a Section 1035 exchange will be considered issued in the year of the
exchange.  You should  consult a tax adviser prior to  purchasing  more than one
Non-Qualified annuity contract in any calendar year period.

Partial 1035 Exchanges


Section 1035 of the Code provides that an annuity contract may be exchanged in a
tax-free transaction for another annuity contract. Historically, it was presumed
that only the exchange of an entire contract,  as opposed to a partial exchange,
would be accorded tax-free status. In 1998 in CONWAY VS.  COMMISSIONER,  the Tax
Court held that the direct  transfer  of a portion of an annuity  contract  into
another annuity contract  qualified as a non-taxable  exchange.  On November 22,
1999, the Internal  Revenue  Service filed an Action on Decision which indicated
that  it  acquiesced  in the Tax  Court  decision  in  CONWAY.  However,  in its
acquiescence  with the decision of the Tax Court,  the Internal  Revenue Service
stated that it will challenge  transactions  where taxpayers enter into a series
of partial exchanges and annuitizations as part of a design to avoid application
of the 10%  premature  distribution  penalty  or other  limitations  imposed  on
annuity  contracts  under the Code. In the absence of further  guidance from the
Internal  Revenue Service it is unclear what specific types of partial  exchange
designs and transactions will be challenged by the Internal Revenue Service. Due
to the  uncertainty  in this area owners  should  consult their own tax advisers
prior to entering into a partial exchange of an annuity contract.


WITHDRAWALS -- NON-QUALIFIED CONTRACTS

You, as the Contract Owner,  will not be taxed on increases in the value of your
Contract  until a  distribution  occurs  either as a  withdrawal  or as  Annuity
Payments.  When you make a withdrawal from your Contract, the Code treats such a
withdrawal as first coming from  earnings and then from your Purchase  Payments.
You will be taxed on the  amount of the  withdrawal  that is  earnings.  In most
cases,  such withdrawn  earnings are included in income.  For Annuity  Payments,
different  rules apply.  A portion of each  Annuity  Payment you receive will be
treated as a partial return of your Purchase Payments and will not be taxed. The
remaining portion of the Annuity Payment will be treated as ordinary income. How
the Annuity Payment is divided between taxable and non-taxable  portions depends
upon the period over which the Annuity Payments are expected to be made. Annuity
Payments  received  after you have  received all of your  Purchase  Payments are
fully includible in income.

The Code also provides that any amount received under an annuity  contract which
is included in income may be subject to a tax penalty. The amount of the penalty
is equal to 10% of the amount that is  includible  in income.  Some  withdrawals
will be exempt from the penalty. They include any amounts:

1)   paid on or after the taxpayer reaches age 59 1/2 ;

2)   paid after you die;

3)   paid if the taxpayer becomes totally disabled (as that term is defined in
     the Code);

4)   paid in a series of  substantially  equal  payments  made annually (or more
     frequently) for life or a period not exceeding life
     expectancy;

5)   paid under an immediate annuity; or

6)   which come from purchase payments made prior to August 14, 1982.

With  respect  to (4)  above,  if the  series of  substantially  equal  periodic
payments is modified  before the later of your  attaining  age 59 1/2 or 5 years
from the date of the  first  Annuity  Payment,  then the tax for the year of the
modification  is  increased  by the  penalty  tax that would  have been  imposed
without the  exception,  plus  interest for the tax years in which the exception
was used. A partial liquidation  (withdrawal) during the Payout Phase may result
in  the  modification  of  the  series  of  Annuity  Payments  made  after  such
liquidation  and therefore could result in the imposition of the 10% penalty tax
and interest for the period as described  above unless another  exception to the
penalty tax applies.  You should obtain competent tax advice before you make any
liquidations from your Contract.

WITHDRAWALS --QUALIFIED CONTRACTS

If you  make a  withdrawal  from  your  Qualified  Contract,  a  portion  of the
withdrawal is treated as taxable  income.  This portion  depends on the ratio of
pre-tax Purchase  Payments to the after-tax  Purchase Payments in your Contract.
If all of your  Purchase  Payments  were made with  pre-tax  money then the full
amount of any  withdrawal  is includible  in taxable  income.  Special rules may
apply to withdrawals from certain types of Qualified  Contracts,  including Roth
IRAs.

The Code also  provides  that any amount  received  under a Qualified  Contract,
which is  included  in income,  may be  subject to a penalty.  The amount of the
penalty  is  equal to 10% of the  amount  that is  includible  in  income.  Some
withdrawals will be exempt from the penalty. They include any amounts:

1)   paid on or after you reach age 59 1/2 ;

2)   paid after you die;

3)   paid if you become totally disabled (as that term is defined in the Code);

4)   paid to you after leaving your employment in a series of substantially
     equal periodic payments made annually (or more frequently) under a lifetime
     annuity;

5)   paid  to you  after  you  have  attained  age 55 and  you  have  left  your
     employment;

6)   paid for certain allowable medical expenses (as defined in the Code);

7)   paid pursuant to a qualified domestic relations order;

8)   paid on account of an IRS levy upon the Qualified Contract;

9)   paid from an IRA for medical insurance (as defined in the Code);

10)  paid from an IRA for qualified higher education expenses; or

11)  paid  from an IRA for up to  $10,000  for  qualified  first-time  homebuyer
     expenses (as defined in the Code).

The  exceptions  in 5) and 7) above do not apply to IRAs.  The  exception  in 4)
above applies to IRAs but without the requirement of leaving employment.

We have provided a more complete discussion in the Statement of Additional
Information.

WITHDRAWALS -- TAX-SHELTERED ANNUITIES

The Code limits the withdrawal of amounts attributable to Purchase Payments made
under a  salary  reduction  agreement  by  Contract  Owners  from  Tax-Sheltered
Annuities. Withdrawals can only be made when a Contract Owner:

1)   reaches age 59 1/2 ;

2)   leaves his/her job;

3)   dies;

4)   becomes disabled (as that term is defined in the Code); or

5)   in the case of hardship.  However,  in the case of  hardship,  the Contract
     Owner can only withdraw the Purchase Payments and not any earnings.

DEATH BENEFITS


For  Contracts  which  contain  separate  charges for enhanced  death  benefits:
Certain death  benefits may be purchased  under your  Contract.  Although  these
types of benefits are used as investment  protection and should not give rise to
any adverse tax effects,  the Internal  Revenue  Service could take the position
that some or all of the charges for these death benefits  should be treated as a
partial  withdrawal  from the Contract.  In such case, the amount of the partial
withdrawal may be includible in taxable income and subject to the 10% penalty if
the owner is under age 59 1/2.

If an enhanced  death benefit is selected for a Qualified  Contract,  such death
benefits may be considered by the Internal Revenue Service as "incidental  death
benefits."  The Code imposes  limits on the amount of incidental  death benefits
allowable for Qualified Contracts, and if the death benefits selected by you are
considered to exceed such limits,  the  provisions of such benefits could result
in  currently  taxable  income  to  the  owners  of  the  Qualified   Contracts.
Furthermore,  the Code provides that the assets of an IRA may be not invested in
life  insurance,  but may provide in the case of death  during the  Accumulation
Phase for a death benefit  payment equal to the greater of purchase  payments or
contract value.  The Contract offers death benefits which may exceed the greater
of Purchase  Payments or Contract  value. If these death benefits are determined
by the Internal  Revenue Service as providing life  insurance,  the Contract may
not  qualify  as an IRA  (including  Roth  IRAs),  resulting  in the  individual
taxation of amounts held in the Contract and the  imposition  of penalty  taxes.
You should consult your tax adviser  regarding these features and benefits prior
to purchasing a Contract.


DIVERSIFICATION

The Code provides that the underlying  investments  for a variable  annuity must
satisfy  certain  diversification  requirements  in  order to be  treated  as an
annuity  contract.  Allianz Life believes that the Investment  Options are being
managed so as to comply with the requirements.

Neither the Code nor the Internal  Revenue  Service  Regulations  issued to date
provide guidance as to the circumstances  under which you, because of the degree
of control you exercise over the underlying  investments,  and not Allianz Life,
would be considered  the owner of the shares of the Investment  Options.  If you
are  considered  the  owner of the  shares,  it will  result  in the loss of the
favorable tax  treatment  for the  Contract.  It is unknown to what extent under
federal tax law Contract Owners are permitted to select Investment  Options,  to
make transfers among the Investment Options or the number and type of Investment
Options  Contract  Owners may select from without being  considered the owner of
the shares. If any guidance is provided which is considered a new position, then
the guidance would generally be applied prospectively. However, if such guidance
is considered not to be a new position,  it may be applied  retroactively.  This
would mean that you, as the Owner of the Contract, could be treated as the owner
of the Investment Options.

Due to the  uncertainty in this area,  Allianz Life reserves the right to modify
the Contract in an attempt to maintain favorable tax treatment.


8. ACCESS TO YOUR MONEY
--------------------------------------------------------------------------------


You can have access to the money in your Contract:


1) by making a withdrawal (either a partial or a total withdrawal);


2) by receiving Annuity Payments; or

3) when a death benefit is paid to your Beneficiary.


Withdrawals can only be made during the Accumulation Phase.

When you make a complete withdrawal you will receive the value of the Contract
on the day we receive the withdrawal request:

|X|      less any applicable contingent deferred sales charge,

|X|      adjusted for any applicable MVA,

|X|      less any premium tax, and

|X|      less any contract maintenance charge.

See section 6. Expenses for a discussion of the charges.


Any partial  withdrawal must be for at least $500.  After you make a partial
withdrawal,  the value of your  Contract  must be at least  $2,000.  Unless  you
instruct us  otherwise,  we will make any partial  withdrawal  pro rata from the
Investment Choices unless you have a Fixed Account Investment Choice with a MVA.
If you have a Fixed  Account  Investment  Choice  with a MVA,  we will  make any
partial  withdrawal pro rata from the Investment  Options.  If the amount in the
Investment  Options  is less than the  partial  withdrawal,  then the  remaining
amount will come pro rata from any other available Investment Choices.


Income taxes, tax penalties and certain restrictions may apply to any withdrawal
you make.

There  are  limits  on  withdrawals  from TSA or  403(b)  Contracts.  For a more
complete explanation see Section 7. Taxes and the discussion in the SAI.

SYSTEMATIC WITHDRAWAL PROGRAM

If the value of your  Contract  is at least  $25,000,  we offer a  program  that
provides  automatic monthly or quarterly payments to you each Contract year. The
systematic  withdrawal  program is subject to the partial  withdrawal  privilege
which means that the total  systematic  withdrawals  you can make each  Contract
year without incurring a contingent  deferred sales charge are limited to 15% of
your  Contract  value.  This is determined on the last business day prior to the
day we receive your request at our Service  Center.  You may withdraw any amount
you want under this program if your Purchase  Payments are no longer  subject to
the  contingent  deferred  sales  charge.  If you make  withdrawals  under  this
program, you may not also use the partial withdrawal privilege. For a discussion
of the contingent  deferred sales charge and the partial  withdrawal  privilege,
see Section 6. Expenses.  All systematic withdrawals will be made on the 9th day
of the month  unless  that day is not a  business  day.  If it is not,  then the
withdrawal will be made the previous business day.

Income taxes, tax penalties and certain restrictions may apply to systematic
withdrawals.

MINIMUM DISTRIBUTION PROGRAM


If you  own a  Qualified  Contract,  you may  select  the  minimum  distribution
program.  Under this  program,  we will make  payments to you from your Contract
that are  designed  to meet the  applicable  minimum  distribution  requirements
imposed  by the Code  for  Qualified  Contracts.  Such  withdrawals  will not be
subject to a contingent  deferred  sales  charge.  Payments may be made monthly,
quarterly,  or annually  unless your Contract is less than $25,000 in which case
the  payments  will  only be made  annually.  If you have  elected  the  minimum
distribution program, any additional withdrawals in a Contract year which exceed
15% of your Contract value when combined with minimum  distribution  withdrawals
will be subject to any applicable  contingent  deferred sales charge. You cannot
participate in the systematic  withdrawal  program and the minimum  distribution
program at the same time.


SUSPENSION OF PAYMENTS OR TRANSFERS

Allianz Life may be required to suspend or postpone payments for withdrawals or
transfers for any period when:

1)  the New York Stock Exchange is closed (other than customary weekend and
    holiday closings);

2)  trading on the New York Stock Exchange is restricted;

3)  an emergency exists as a result of which disposal of the Investment Option
    shares is not reasonably practicable or Allianz Life cannot reasonably value
    the Investment Option shares;

4)  during any other period when the Securities and Exchange Commission, by
    order, so permits for the protection of Contract Owners.

Allianz Life has reserved the right to defer payment for a withdrawal or
transfer from the Fixed Account for the period permitted by law but not for more
than six months.


9. PERFORMANCE and ILLUSTRATIONS
--------------------------------------------------------------------------------


Allianz  Life  periodically  advertises  performance  of  the  divisions  of the
Separate  Account  (also known as  sub-accounts).  Allianz  Life will  calculate
performance by determining the percentage change in the value of an Accumulation
Unit by  dividing  the  increase  (decrease)  for that  unit by the value of the
Accumulation  Unit at the  beginning  of the  period.  This  performance  number
reflects  the  deduction  of the  insurance  charges and the  Investment  Option
expenses. It may not reflect the deduction of any applicable contingent deferred
sales charges and contract  maintenance  charge. The deduction of any applicable
contract  maintenance charge and contingent  deferred sales charges would reduce
the  percentage   increase  or  make  greater  any  percentage   decrease.   Any
advertisement  will also  include  average  annual total  return  figures  which
reflect the deduction of the insurance  charges,  contract  maintenance  charge,
contingent  deferred sales charges and the expenses of the  Investment  Options.
Allianz Life may also advertise cumulative total return information.  Cumulative
total  return  is  determined  the same way  except  that  the  results  are not
annualized.  Performance  information  for the  Investment  Options  may also be
advertised; see the Investment Option prospectuses for more information.

Certain  Investment  Options  have  been in  existence  for  some  time and have
investment   performance  history.  In  order  to  demonstrate  how  the  actual
investment  experience of the  Investment  Options may affect your  Accumulation
Unit  values,  Allianz Life has prepared  performance  information  which can be
found in the SAI.  There is  performance  shown which is based on the historical
performance of the Investment  Options,  modified to reflect the current charges
and expenses of your  Contract as if the Contract had been in existence  for the
time periods shown.  The information is based upon the historical  experience of
the Investment Options and does not represent past performance or predict future
performance.

Allianz Life may in the future also advertise yield information. If it does, it
will provide you with information regarding how yield is calculated. More
detailed information regarding how performance is calculated is found in the
SAI.

Any performance advertised will be based on historical data. It does not
guarantee future results of the Investment Options.

Allianz Life may also provide  illustrations to customers.  These  illustrations
may provide  hypothetical  depictions  of either the  "payin,"  or  accumulation
phase, or the "payout," or annuitization phase.  Illustrations may be based upon
historical  performance  of the  Investment  Options,  as  adjusted  for certain
expenses.  (Any adjusted historical performance  information will be accompanied
by  "standardized"   performance  information.)  In  the  alternative,   certain
illustrations  may be based  upon an assumed  rate of return not to exceed  12%.
"Payin" and "payout" illustrations may have various features, as follows:

o    Pay in  illustrations  assume an initial  lump sum premium  payment and are
     designed to show how adjusted historical  performance or an assumed rate of
     return would have affected Contract values, withdrawal values, or the death
     benefit.  Payin  illustrations  may also be  designed to show the effect of
     periodic  additional premium payments and withdrawals.  Payin illustrations
     based upon  adjusted  historical  performance  may assume  that  monies are
     allocated to a single Investment Option or to multiple  Investment Options.
     In  the  event  that  monies  are  hypothetically   allocated  to  multiple
     Investment Options, performance may be shown on a weighted aggregate basis.
     Dollar  cost  averaging  illustrations,   which  are  based  upon  adjusted
     historical performance, would compare the hypothetical effect of a lump sum
     premium payment into the specified  Investment  Options, as contrasted with
     dollar cost averaging into the Investment Options over some period.


o    Payout  illustrations  are  designed  to show the  hypothetical  effect  of
     annuitizing a Contact,  or receiving a stream of periodic  payments.  These
     illustrations  may  depict  either  a  variable  annuitization  or a  fixed
     annuitization.  A  variable  payout  illustration  would  be  based  upon a
     combination of adjusted historical performance and an assumed interest rate
     (AIR),  whereas  a fixed  payout  illustration  would  be  based  upon  the
     annuitant's  age, the payout option  selected,  and the payout factor rates
     currently  in  effect  on the  date of the  illustration.  Variable  payout
     illustrations  may also show the  portion of each payout that is subject to
     income tax and the portion that is non-taxable.  Where applicable, a payout
     illustration  will  show  the  effect  of the  GMIB or GMDB  value  that is
     credited  to a  Contract  in the event of certain  annuitizations  or death
     benefit payouts. In addition to variable and fixed payout illustrations, an
     illustration  may also be prepared  showing the effect of required  minimum
     distribution payments from qualified Contracts.


The values illustrated will be calculated reflecting the deduction of Investment
Option  expenses for the specific  Investment  Options  selected,  mortality and
expense risk charges,  and other Contract charges.  Contract maintenance charges
may or may not be  deducted  from a  particular  illustration.  For fixed  payin
illustrations,  where no Investment Options are selected,  an arithmetic average
of Investment Option expenses will be reflected. The amount of the mortality and
expense risk charges charges shown in an illustration will vary,  depending upon
the Contract features you select. For withdrawal values, the contingent deferred
sales charges are also reflected.  Illustrations  will not reflect the deduction
of any state premium tax or any Federal or state income tax or penalties.

The  illustrations  that are given to  customers by Allianz Life are designed to
assist  customers  in  understanding  how a contract  may  function in different
scenarios.  They are not guarantees or  representations as to future performance
or any specific rate of return.

A sample format of a customer illustration is attached as Appendix A to the
Statement of Additional Information and is incorporated herein by reference.

10. DEATH BENEFIT
--------------------------------------------------------------------------------



At the time you purchase the Contract, you may be able to select a death benefit
option.  If you own the  Contract  jointly,  we  will  use the age of the  older
Contract Owner to determine the death benefit.

For New Contracts, the Enhanced Guaranteed Minimum Death Benefit (Enhanced GMDB)
is available for an  additional  mortality and expense risk charge if all owners
are age 79 or younger on the issue date.  The Enhanced GMDB does not provide any
additional  benefit  before the first  Contract  anniversary  and it may be less
advantageous  if any owner is age 75 to 79 on the issue date because the benefit
values may be limited after age 81.

If you have a New  Contract  you may be able to select  from one of three  death
benefit options subject to certain age restrictions and state availability.  The
three death  benefits  are the  Traditional  Guaranteed  Minimum  Death  Benefit
(Traditional  GMDB),  the Enhanced  Guaranteed  Minimum Death Benefit  (Enhanced
GMDB) and the Earnings Protection Guaranteed Minimum Death Benefit (EP GMDB). If
you do not select a death benefit on a New Contract,  the Traditional  GMDB will
apply.

If you  have an Old  Contract  that  does  not have an  Enhanced  Death  Benefit
Endorsement  (EDB  Endorsement),  the death benefit will be your Contract  value
determined  as of the end of the  business  day  during  which both due proof of
death and an election of the death benefit  payment option have been received at
our Service  Center,  less any  applicable  premium  taxes.  DB Option 2 was not
available before July 6, 1999.

The EP GMDB is available if all owners are age 75 or younger on the issue date.
The EP GMDB benefit values are limited if any owner is age 70 or older on the
issue date. The EP GMDB was not available on Old Contracts before November 1,
2001.


Once you select a death  benefit you cannot  change it. The GMDB options may not
be available in your state. Check with your registered  representative regarding
availability  and be sure to discuss  whether  your  selected  death  benefit is
appropriate for your situation.


If the Contract is owned by a non-individual,  the death benefit may be based on
the Annuitant.


Please refer to the applicable endorsements to your Contract for the specific
terms and conditions of the death benefits.

Upon Your Death


If you or any Joint Owner die during the Accumulation Phase, we will pay a death
benefit to your  Beneficiary  (see below).  If you or any Joint Owner die during
the Payout Phase,  the  Beneficiary  becomes the Contract  Owner and any benefit
will be as provided for in the Annuity Option selected. If the Contract is owned
by a non-individual, then all references to you mean the Annuitant.

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

In the case of Joint Owners,  if one Joint Owner dies, the surviving Joint Owner
will  be  considered  the  Beneficiary.  We will  treat  any  other  Beneficiary
designation  on record at the time of death as a contingent  Beneficiary.  Joint
Owners  generally must be spouses  (although this  requirement  may not apply in
certain states).




Traditional  guaranteed minimum death benefit (Traditional GMDB) - NEW CONTRACTS
ONLY


If the  Traditional  GMDB  applies,  the amount of the death benefit will be the
greater of 1 or 2, less any applicable premium tax.



1.   The  Contract  value  determined  as of the end of the  business day during
     which both due proof of death and an election of the death benefit  payment
     option have been received at our Service Center;

2.   The guaranteed  minimum death  benefit,  which is the total of all Purchase
     Payments you have made  reduced by the  percentage  of the  Contract  value
     withdrawn  (prior to any MVA, but including any  contingent  deferred sales
     charge) for each withdrawal you made.


enhanced guaranteed minimum death benefit (enhanced GMDB) - NEW CONTRACTS ONLY

If the  Enhanced  GMDB  applies,  the  amount of the death  benefit  will be the
greater of 1 or 2, less any applicable premium tax.

1.   The  Contract  value  determined  as of the end of the  business day during
     which both due proof of death and an election of the death benefit  payment
     option have been received at our Service Center;

2.   The guaranteed  minimum death benefit,  as defined below,  determined as of
     the end of the  business  day  during  which  both due  proof of death  and
     election of the death  benefit  payment  option  have been  received at our
     Service Center.

The guaranteed minimum death benefit is equal to the greater of A or B:

A. Annual Increase Amount

The Annual Increase Amount is initially equal to your Purchase Payment.


On each business day other than a Contract anniversary and before the date of
your death, the Annual Increase Amount is equal to:
|X| its value on the immediately preceding business day,
|X| plus any additional Purchase Payments received that day, and
|X| minus the percentage of any Contract value withdrawn
(prior to any MVA, but including any contingent deferred sales charge)
     for each withdrawal you make that day.

On every Contract anniversary prior to your 81st birthday and before the date of
your death, the Annual Increase Amount is equal to:
|X| its value on the immediately preceding business day increased by 3%;
|X| plus any additional
Purchase Payments received that day, and
|X| minus the percentage of any
Contract value withdrawn (prior to any MVA, but including any contingent
deferred sales charge)
     for each withdrawal you make that day.

Beginning  with the  Contract  anniversary  that  occurs  on or after  your 81st
birthday  and before the date of your death,  we calculate  the Annual  Increase
Amount  in the same way that we do on any  business  day other  than a  Contract
anniversary.

We limit  the  Annual  Increase  Amount to a maximum  of 1.5  times  your  total
Purchase Payments minus the percentage of any Contract value withdrawn (prior to
any MVA, but including any contingent deferred sales charge) for each withdrawal
you made.


B. Maximum Anniversary Value (MAV)

The MAV is initially equal to your Purchase Payment.

On each business day other than a Contract anniversary and before the date of
your death, the MAV is equal to:
|X| its value on the immediately precedingbusiness day,
|X| plus any additional Purchase Payments received that day, and
|X| minus the percentage of any Contract value withdrawn (prior to any MVA, but
including any contingent deferred sales charge)
     for each withdrawal you make that day.

On every Contract anniversary prior to your 81st birthday and before the date of
your death, the MAV is equal to:
|X| the highest Contract value that occurred on
any Contract anniversary,
|X| plus subsequent additional Purchase Payments you
made since that Contract anniversary, and
|X| minus the percentage of any
Contract value withdrawn (prior to any MVA, but including any contingent
deferred sales charge)
     for each withdrawal you made since that Contract anniversary.

Beginning  with the  Contract  anniversary  that  occurs  on or after  your 81st
birthday and before the date of your death, we calculate the MAV in the same way
that we do on any business day other than a Contract anniversary.

earnings protection guaranteed minimum death benefit (ep GMDB)


If the EP GMDB applies, the amount of the death benefit will be the greatest of
1, 2 or 3 (described below) less any applicable premium tax.

1.  The Contract value determined as of the end of the business day during which
    both due proof of death and an election of the death benefit payment option
    have been received at our Service Center;


2.  Total Purchase Payments less adjusted partial withdrawals.


An adjusted partial withdrawal   =  PW  x  DB
                                            CV

         PW = the partial withdrawal prior to any MVA, but including any
contingent deferred sales charge.
         DB       = the greater of (a) Contract value, or (b) total Purchase
                  Payments minus prior adjusted partial withdrawals, on the date
                  of (but prior to) the current partial withdrawal.
         CV = the Contract value on the date of (but prior to) the partial
withdrawal.

3.   The Contract value at the end of the business day during which both due
     proof of death and an election of the death benefit payment option have
     been received at our Service Center,


         PLUS


For New Contracts:
|X| If you are 69 or younger on the issue date, 50% of the lesser of (a) or (b),
or |X| If you are 70 or older on the issue date, 30% of the lesser of (a) or
(b).

(a) is the Contract  value as determined in number 1 above minus total  Purchase
Payments.  (b) is three times the total Purchase  Payments you make in the first
two Contract Years.


For Old Contracts:
|X| If you are 69 or younger on the issue date, 40% of the lesser of (a) or (b),
or |X| If you are 70 or older on the issue date, 25% of the lesser of (a) or
(b).


(a) is the Contract value as determined in number 1 above minus total Purchase
Payments. (b) is the total Purchase Payments.



death benefit Option 1 (DB Option 1) - old contracts only

If DB Option 1 applies, the amount of the death benefit will be the greater of 1
or 2, less any applicable premium tax.


1.  The Contract value determined as of the end of the business day during which
    both due proof of death and an election of the death benefit payment option
    have been received at our Service Center;

2.  The guaranteed minimum death benefit, as defined below, determined as of the
    end of the business day during which both due proof of death and election of
    the death benefit payment option have been received at our Service Center.

     If any owner is 80 or older at Contract issue, the guaranteed minimum death
     benefit will be total Purchase Payments minus any partial  withdrawal prior
     to any MVA, but including  any  contingent  deferred  sales charge for each
     withdrawal you make.


If   all owners are 79 or younger at  Contract  issue,  the  guaranteed  minimum
     death benefit is equal to the greater of A or B:

A. Annual Increase Amount

The Annual Increase Amount is initially equal to your Purchase Payment.

On each business day other than a Contract anniversary and before the date of
your death, the Annual Increase Amount is equal to:
|X| its value on theimmediately preceding business day,
|X| plus any additional Purchase Paymentsreceived that day, and
|X| minus any partial withdrawal (prior to any MVA, but
including any contingent deferred sales charge) for each withdrawal you
     make that day.


On every Contract anniversary prior to your 81st birthday* and before the date
of your death, the Annual Increase Amount is equal to:
|X| its value on the immediately preceding business day increased by 5%;
|X| plus any additional Purchase Payments received that day, and
|X| minus any partial withdrawal (prior
to any MVA, but including any contingent deferred sales charge) for each
withdrawal you
     make that day..

Beginning  with the  Contract  anniversary  that  occurs  on or after  your 81st
birthday* and before the date of your death,  we calculate  the Annual  Increase
Amount  in the same way that we do on any  business  day other  than a  Contract
anniversary.

*76th  birthday in Washington  and for Old Contracts  issued before  November 1,
1998.


B.       The Six-Year Step Up

The Six-Year Step Up is initially equal to your Purchase Payment.


On each business day other than a sixth year Contract anniversary and before the
date of your death, the Six-Year Step Up is equal to:
|X| its value on the immediately preceding business day,
|X| plus any additional Purchase Payments received that day, and
|X| minus any partial withdrawal (prior to any MVA, but
including any contingent deferred sales charge) for each withdrawal you
     make that day.

On every sixth year Contract anniversary (the 6th, 12th, 18th, 24th, etc.) prior
to your 81st birthday*, the Six-Year Step Up is equal to:
|X| the highest Contract value that occurred on any sixth year Contract
anniversary,
|X| plus subsequent additional Purchase Payments you made since that Contract
anniversary, and
|X| minus any partial withdrawals (prior to any MVA, but including any
contingent deferred sales charge) for each withdrawal you   made since that
Contract anniversary.

Beginning  with the  Contract  anniversary  that  occurs  on or after  your 81st
birthday*,  we calculate  the Six-Year Step Up in the same way that we do on any
business day other than a sixth year Contract anniversary.


*76th  birthday in Washington  and for Old Contracts  issued before  November 1,
1998.

death benefit Option 2 (DB Option 2) - old contracts only


If DB Option 2 applies, the amount of the death benefit will be the greater of 1
or 2 , less any applicable premium tax.

1.  The Contract value determined as of the end of the business day during which
    both due proof of death and an election of the death benefit payment option
    have been received at our Service Center;

2.  The guaranteed minimum death benefit, as defined below, determined as of the
    end of the business day during which both due proof of death and election of
    the death benefit payment option have been received at our Service Center.

      If any owner is 80 or older at Contract issue, the guaranteed minimum
death benefit is equal to A.

     If all owner are 79 or younger at Contract issue, the guaranteed minimum
     death benefit is equal to the greater of A or B:


A. Total Purchase Payments

Your total Purchase Payments:
|X|  minus any partial withdrawal (prior to any MVA, but including any
     contingent deferred sales charge) for each withdrawal you made.

B. Maximum Anniversary Value (MAV)

The MAV is initially equal to your Purchase Payment.


On each business day other than a Contract anniversary and before the date of
your death, the MAV is equal to:
|X| its value on the immediately preceding business day,
|X| plus any additional Purchase Payments received that day, and
|X| minus any partial withdrawal (prior to any MVA, but including any contingent
deferred sales charge) for each withdrawal you
     make that day.

On every Contract anniversary prior to your 81st birthday and before the date of
your death, the MAV is equal to:
|X| the highest Contract value that occurred on any Contract anniversary,
|X| plus subsequent additional Purchase Payments you made since that
 Contract anniversary, and
|X| minus any partial withdrawals
(prior to any MVA, but including any contingent deferred sales charge) for each
withdrawal you
     made since that Contract anniversary.

Beginning  with the  Contract  anniversary  that  occurs  on or after  your 81st
birthday and before the date of your death, we calculate the MAV in the same way
that we do on any business day other than a Contract anniversary.



Death Benefit Examples
|X|  You purchase a New Contract with an initial Purchase Payment of $100,000
     allocated only to the Investment Options. You are the only owner and are 69
     or younger on the issue date.
|X|  You make no additional Purchase Payments.
|X|  The MAV on the ninth Contract anniversary is $180,000.
|X|  You take a partial withdrawal of $20,000 (this includes the contingent
     deferred sales charge) in the tenth Contract year when the Contract value
     on the date of (but prior to the partial withdrawal) is $160,000. You take
     no other partial withdrawals.
|X| The Contract value on the tenth Contract anniversary is $140,000. |X| You
have not yet reached your 81st birthday as of the tenth Contract anniversary.


Traditional GMDB:
<TABLE>
<CAPTION>

We calculate the death benefit on the tenth Contract anniversary as the greater
of:
<S>                                                                             <C>


         1) Contract value:                                                     $140,000
                                                                                ========


         2) The guaranteed minimum death benefit:
               Total Purchase Payments                                          $100,000
               Minus the percentage of Contract value
                 withdrawn:   ($20,000 / $160,000) = 0.125 x $100,000 =         -  12,500
                                                                                ---------
                                                                                $ 87,500

Therefore, the death benefit under the Traditional GMDB on the tenth Contract
anniversary is $140,000.

Enhanced GMDB:

We calculate the death benefit on the tenth Contract anniversary as the greatest
of:

         1) Contract Value $ 140,000 2) The Annual Increase Amount:
               Purchase Payment made on Jan. 1, 2004                            $100,000.00
               Increased by 3% on the first Contract anniversary                x          1.03
                                                                                ---------------
                                                                                $103,000.00
               Increased by 3% on the second Contract anniversary               x           1.03
                                                                                ----------------
                                                                                $106,090.00
               Increased by 3% on the third Contract anniversary                x           1.03
                                                                                ----------------
                                                                                $109,272.70
               On the ninth Contract anniversary the
                 Annual Increase Amount is                                      $130,477.32
               Minus the percentage of Contract value
                 withdrawn:   ($20,000 / $160,000) = 0.125 x $130,477.32 =      -   16,309.66
                                                                                -------------
                                                                                $114,167.65
               Increased by 3% on the tenth Contract anniversary                x           1.03
                                                                                ----------------
                                                                                $117,592.68
               Verifying that the Annual Increase Amount is within the maximum
                 limit:
                   1.5 times Purchase Payments:    1.5 x $100,000 =             $150,000
                   Minus the percentage of Contract value
                     withdrawn:   ($20,000 / $160,000) = 0.125 x $150,000 =     -   18,750
                                                                                ----------
                                                                                $131,250
         3) The MAV:
               The MAV on the ninth Contract anniversary                        $180,000
               Minus the percentage of Contract value
                 withdrawn:   ($20,000 / $160,000) = 0.125 x $180,000 =          -  22,500
                                                                                 ---------
                                                                                 $157,500
Therefore, the death benefit for the Enhanced GMDB is $157,500.

EP GMDB:

We calculate the death benefit on the tenth Contract anniversary as the greater
of:

         1) Contract value:                                                     $140,000
                                                                                ========

         2) Total Purchase Payments                                             $100,000
               Less adjusted partial withdrawals calculated
                 as PW  x  DB/CV:
                 ($20,000 x $160,000 / $160,000) = $20,000  x  1  =             -  20,000
                                                                                ---------
                                                                                $ 80,000

         3) Contract value                                                      $140,000
               Plus 50% of the lesser of (a) or (b).
(a) Contract value minus total Purchase
                     Payments: $140,000  -  $100,000  =                $  40,000
(b) Three times your total Purchase Payments
                     received in the first two Contract years:         $300,000

                 (a) is less than (b), so 50% of (a) =  0.50  x  $40,000  =      $ 20,000
                                                                                 --------
                                                                                 $160,000

Therefore, the death benefit under the EP GMDB on the tenth Contract anniversary
is $160,000.

</TABLE>


Death Benefit Payment options

If you  have  not  previously  designated  a death  benefit  payment  option,  a
Beneficiary  must  request  the  death  benefit  be paid  under one of the death
benefit  payment options below. If the Beneficiary is the spouse of the Contract
Owner,  he/she can choose to  continue  the  Contract in his/her own name at the
then current  Contract  value,  or if greater,  the death  benefit  value.  With
respect to the EP GMDB, the Contract value is then treated as the total Purchase
Payments in the  calculation of the death benefit for the Contract  continued by
the spouse. An election by the spouse to continue the Contract must be made in a
form  satisfactory  to us at our Service  Center  within 60 days after the death
benefit  first becomes  payable by us. If a lump sum payment is  requested,  the
amount will be paid within seven days of receipt of proof of death and the valid
election,  including any required  governmental  forms, unless the suspension of
payments or transfers  provision is in effect.  Payment of the death benefit may
be delayed  pending  receipt of any applicable tax consents  and/or forms from a
state.  Option A: lump sum payment of the death  benefit.  Allianz Life will not
deduct the contract  maintenance charge at the time of a complete  withdrawal if
the distribution is due to death

Option B: payment of the entire death benefit  within 5 years of the date of the
Contract  Owner's  or any Joint  Owner's  death.  Allianz  Life will  assess the
contract maintenance charge on each Contract anniversary.

Option C: payment of the death benefit under an Annuity Option over the lifetime
of the Beneficiary or over a period not extending  beyond the life expectancy of
the  Beneficiary.  Distribution  under this option must begin within one year of
the date of the  Contract  Owner's  or any Joint  Owner's  death.  The  contract
maintenance  charge will not be assessed  to each  Beneficiary's  share pro rata
over the payments.

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


If the Beneficiary wants to receive the payment other than in a lump sum, he/she
may only make such an election during the 60 day period after the day that the
lump sum first became payable by Allianz Life.

If you (or any Joint  Owner) die  during  the  Payout  Phase and you are not the
Annuitant,  any payments which are remaining  under the Annuity Option  selected
will continue at least as rapidly as they were being paid at your death.  If you
die during the Payout Phase, the Beneficiary becomes the Contract Owner.

DEATH OF ANNUITANT


If the Annuitant, who is not a Contract Owner or Joint Owner, dies during the
Accumulation Phase, you can name a new Annuitant. If you do not name a new
Annuitant within 30 days of the death of the Annuitant, you will become the
Annuitant. However, if the Contract Owner is a non-individual (e.g., a qualified
plan or trust), then the death of the Annuitant will be treated as the death of
the Contract Owner, and a new Annuitant may not be named.

If the Annuitant dies after Annuity Payments have begun,  the remaining  amounts
payable,  if any, will be as provided for in the Annuity  Option  selected.  The
remaining amounts payable will be paid to the Contract Owner at least as rapidly
as they were being paid at the Annuitant's death.



10. OTHER INFORMATION
--------------------------------------------------------------------------------


ALLIANZ LIFE

Allianz Life  Insurance  Company of North America  (Allianz  Life),  5701 Golden
Hills Drive,  Minneapolis,  Minnesota 55416, was organized under the laws of the
state of  Minnesota  in 1896.  Allianz  Life  offers  fixed  and  variable  life
insurance and annuities and group life,  accident and health insurance.  Allianz
Life is  licensed  to do  direct  business  in 49  states  and the  District  of
Columbia.  Allianz Life is a wholly-owned subsidiary of Allianz Versicherungs-AG
Holding.

THE SEPARATE ACCOUNT

Allianz Life established Allianz Life Variable Account B (Separate Account)
under Minnesota insurance law on May 31, 1985. The Separate Account is
registered with the Securities and Exchange Commission as a unit investment
trust under the Investment Company Act of 1940. The SEC does not supervise our
management of the Separate Account.

The Separate Account holds the assets that underlie the Contracts, except assets
allocated to the Fixed Account. We keep the Separate Account assets separate
from the assets of our general account and other separate accounts. The Separate
Account is divided into subaccounts, each of which invests exclusively in a
single Investment Option.

Allianz  Life owns the assets of the  Separate  Account.  We credit  gains to or
charge losses against the Separate  Account without regard to the performance of
other investment accounts.  The Separate Account's assets may not be used to pay
any of our  liabilities  other than those  arising  from the  Contracts.  If the
Separate Account's assets exceed the required reserves and other liabilities, we
may transfer the excess to our general account.

DISTRIBUTION

Our wholly owned  subsidiary,  USAllianz  Investor  Services,  LLC  (USAllianz),
serves  as  principal  underwriter  for  the  Contracts.  USAllianz,  a  limited
liability  company,  organized  in  Minnesota,  is located at 5701 Golden  Hills
Drive, Minneapolis,  Minnesota 55416. USAllianz is registered as a broker/dealer
with the Securities and Exchange Commission under the Securities Exchange Act of
1934 as well as with  the  securities  commissions  in the  states  in  which it
operates,  and is a member of the National  Association  of Securities  Dealers,
Inc.   (NASD).    More    Information    about   USAllianz   is   available   at
http://www.nasdr.com  or by  calling  1-800-289-9999.  You  also can  obtain  an
investor brochure form NASD Regulation describing its Public Disclosure Program.

Commissions   will  be  paid  to   broker/dealers   who  sell   the   Contracts.
Broker/dealers  will  be paid  commissions  up to  7.5%  of  Purchase  Payments.
Sometimes,  Allianz Life enters into an agreement with the  broker/dealer to pay
the  broker/dealer  commissions  as a  combination  of a  certain  amount of the
commission at the time of sale and a trail commission  (which when totaled could
exceed 7.5% of Purchase Payments).

Other compensation options also may be made available.  USAllianz may enter into
selling  agreements with other  broker/dealers  registered  under the Securities
Exchange  Act of 1934.  Under the  agreements  with  those  broker/dealers,  the
commission paid to the broker/dealer on behalf of the registered  representative
will not exceed those  described  above;  selling  firms may retain a portion of
commissions.  We may pay additional expenses. The registered  representative may
receive  a  portion  of  the  expense   reimbursement   allowance  paid  to  the
broker/dealer.

In  addition,  Allianz  Life may pay  certain  sellers  for other  services  not
directly related to the sale of the Contracts (such as special marketing support
allowances). Allianz Life may also periodically pay certain sellers a commission
bonus on aggregate sales for special  promotional  programs.  Commissions may be
recovered  from a  broker/dealer  if a withdrawal  occurs  within 12 months of a
Purchase  Payment or there is a recission of the Contract  within the  Free-Look
period.

We intend to  recoup  commissions  and other  sales  expenses  through  fees and
charges imposed under the Contract.  Commissions paid on the Contract, including
other incentives or payments, are not charged directly to the Contract owners or
the Separate Account.

We offer the  Contracts  to the  public on a  continuous  basis.  We  anticipate
continuing  to offer the  Contracts,  but reserve the right to  discontinue  the
offering.

ADDITIONAL CREDITS FOR CERTAIN GROUPS

Allianz Life may credit  additional  amounts to a Contract  instead of modifying
charges  because  of  special  circumstances  that  result  in  lower  sales  or
administrative  expenses  or  better  than  expected  mortality  or  persistency
experience.

ADMINISTRATION

Allianz Life has hired Delaware Valley  Financial  Services,  Inc.  (DVFS),  300
Berwyn Park, Berwyn,  Pennsylvania,  to perform certain administrative  services
regarding the Contracts.  The  administrative  services  include issuance of the
Contracts and maintenance of Contract Owner's records.

To reduce expenses,  only one copy of most financial  reports and  prospectuses,
including reports and prospectuses for the Investment Options, will be mailed to
your  household,  even if you or other persons in your  household have more than
one contract issued by Allianz or an affiliate.  Call (800)-542-5427 if you need
additional copies of financial reports,  prospectuses,  or annual and semiannual
reports,  or if you would like to receive  one copy for each  contract in future
mailings.

FINANCIAL STATEMENTS



12. Glossary

--------------------------------------------------------------------------------



This  prospectus  is written in plain  English to make it as  understandable  as
possible.  However,  there are some  technical  words or terms that are  defined
below and are capitalized in the prospectus.

Accumulation  Phase - the  period of time  before  you elect to begin  receiving
Annuity  Payments.  You can generally make additional  Purchase  Payments during
this time.

Accumulation  Unit - the units  into which we convert  amounts  invested  in the
subaccounts during the Accumulation Phase.

Annuitant - the natural  person upon whose life the Annuity  Payments are based.
If the  Contract is a Qualified  Contract,  the  annuitant  must be the Contract
Owner unless the Qualified Plan itself is the Contract Owner. The Contract Owner
names the Annuitant at Contract issue.

Annuity Options - the income or payout options available under your Contract.

Annuity  Payments - payments  made by us to the payee  pursuant  to the  Annuity
Option chosen. Annuity Payments may be variable,  fixed or a combination of both
variable and fixed.

Annuity  Unit  - the  units  into  which  we  convert  amounts  invested  in the
subaccounts during the Payout Phase.

Beneficiary  - the  person(s) or entity the Contract  Owner names to receive any
death benefit. The Beneficiary is named at Contract issue. Unless an irrevocable
Beneficiary  has been named,  the Contract  Owner can change the  Beneficiary or
contingent  Beneficiary.  If no Beneficiary is named, the owner's estate becomes
the Beneficiary.

Contract - a deferred  annuity  contract that allows you to accumulate money tax
deferred by making one or more  Purchase  Payments.  It provides for lifetime or
other forms of Annuity Payments beginning on the Income Date.

Contract  Owner - "you",  "your" and "yours".  The person or entity named in the
Contract who may exercise all rights granted by the Contract. The Contract Owner
is designated at Contract issue, unless changed. A Non-Qualified Contract can be
owned by up to two Joint Owners. Any Joint Owner must be the spouse of the other
Contract Owner (this requirement may not apply in certain states).

Fixed Account - part of our general account. The general account consists of all
of our assets  other  than  those in our  variable  separate  accounts.  We have
complete ownership and control of all of these assets.

Income  Date - the date that you begin  receiving  Annuity  Payments  under your
Contract. This date must be the first day of a calendar month.

Investment  Choices - the  variable  Investment  Options  and any Fixed  Account
options available under the Contract for Purchase Payments or transfers.  We may
add, substitute or remove Investment Choices in the future.

Investment Options - the variable Investment Choices available under the
Separate Account. You may not invest in more than ten Investment Options at any
one time.

Market Value  Adjustment  (MVA) - a positive or negative  adjustment  to amounts
withdrawn or  transferred  more than 30 days before the end of an account period
from certain types of Fixed Account Investment Choices.

New  Contracts  - a  Contract  purchased  on or after  May 1,  2003  that has an
optional  Traditional  Guaranteed  Minimum  Income  Benefit and a maximum  total
Separate Account annual expense of 2.20% during the Accumulation Phase.

Non-Qualified  Contract - a Contract  that is not  purchased  under a pension or
retirement plan qualified under sections of the Internal Revenue Code.

Old  Contracts - a Contract  that has two  optional  Guaranteed  Minimum  Income
Benefits (GMIB Option 1 and GMIB Option 2) and a maximum total Separate  Account
annual expense is 1.89% during the Accumulation Phase.

Payout Phase - the phase your Contract is in once Annuity Payments begin.

Purchase Payment - the money you put in the Contract.

Qualified  Contract - a Contract  purchased  under a pension or retirement  plan
qualified under sections of the Internal  Revenue Code (e.g.  401(k) and H.R. 10
plans),  Individual  Retirement  Annuities  (IRAs),  or Tax-Sheltered  Annuities
(referred to as TSA, 403(b), or "90-24 rollover" contracts).  Currently we issue
Qualified  Contracts  which  include  but  may  not be  limited  to  Roth  IRAs,
Traditional  IRAs,  Simplified  Employee  Pension  (SEP)  IRAs and TSA or 403(b)
rollover Contracts (90-24 rollovers").

Separate  Account - Allianz Life Variable Account B is the Separate Account that
issues your Contract.  It is a separate  investment account of Allianz Life. The
Separate  Account  holds the assets  invested  in the  Investment  Options  that
underlie the Contracts.  The Separate Account is divided into subaccounts,  each
of which invests exclusively in a single Investment Option.

Service Center - The USAllianz  Service  Center.  Our Service Center address and
phone number are at the back of this prospectus.


The consolidated  financial  statements of Allianz Life and the Separate Account
have been included in the Statement of Additional Information.


TABLE OF CONTENTS
OF THE STATEMENT OF
ADDITIONAL INFORMATION
--------------------------------------------------------------------------------


Insurance Company                                         2

Experts                                                   2

Legal Opinions                                            2

Distributor                                               2

Reduction or Elimination of the
   Contingent Deferred Sales Charge                       2

Calculation of Performance Data                           2

Federal Tax Status                                       10

Annuity Provisions                                       16

Mortality and Expense Risk Guarantee                     16

Financial Statements                                     16

Appendix A - Illustrations                               17

Appendix  B - Condensed Financial Information            32



<PAGE>


PRIVACY NOTICE

We Care About Your Privacy!

In compliance with  Gramm-Leach-Bliley  (GLB), this notice describes the privacy
policy  and  practices  followed  by  Allianz  Life  Insurance  Company of North
America, and their affiliated companies (herein referred to as "Allianz").

Your  privacy is a high  priority for us and it will be treated with the highest
degree of confidentiality. In order for us to be able to provide these insurance
products and services, we need to collect certain information from you. However,
we want to emphasize  that we are committed to  maintaining  the privacy of this
information  in  accordance  with law. All  individuals  with access to personal
information about our customers are required to follow this policy.

Non-public Information Collected.

o    Information  we receive  from you on  insurance  and annuity  applications,
     claim forms or other forms such as your name, address, date and location of
     birth,  marital status, sex, social security number,  medical  information,
     beneficiary information, etc.

o    Information  about your transactions with us, our affiliates or others such
     as premium payment history, tax information,  investment  information,  and
     accounting information; and

o    Information  we receive  from  consumer  reporting  agencies,  such as your
     credit history.

Non-public Information Disclosed.

o    We may provide the non-public  information that we collect to affiliated or
     nonaffiliated persons or entities involved in the underwriting, processing,
     servicing and  marketing of your Allianz  insurance  products.  We will not
     provide this  information to a  nonaffiliated  third party unless we have a
     written   agreement   that   requires   the  third  party  to  protect  the
     confidentiality of this information.

o    We may have to provide the above described  non-public  information that we
     collect to  authorized  persons or  entities  to comply  with a subpoena or
     summons by federal,  state or local  authorities and to respond to judicial
     process or regulatory  authorities having jurisdiction over our company for
     examination, compliance or other purposes as required by law.

o    We do not disclose any non-public personal  information about our customers
     to anyone except as permitted or required by law.

Confidentiality and Security of Your Non-public Personal Information.

o    We restrict  access of non-public  personal  information  about you to only
     those  persons  who need to know  about  that  information  to  underwrite,
     process, service or market Allianz insurance products and services.

o    We maintain  physical,  electronic,  and procedural  safeguards that comply
     with  state  and  federal  standards  to  guard  your  non-public  personal
     information.

o    If we become aware that an item of personal  information  may be materially
     inaccurate,  we will make  reasonable  effort to re-verify its accuracy and
     correct any error as appropriate.

Information about Former Customers.

Non-public  information about our former customers is maintained by Allianz on a
confidential  and secure basis.  If any such disclosure is made, it would be for
reasons and under the  conditions  described in this notice.  We do not disclose
any non-public personal  information about our former customers to anyone except
as permitted or required by law.

Further Information.

o You have a right to access and request correction of your personal information
that is recorded with Allianz.

o    Information  obtained  from  a  report  prepared  by an  insurance  support
     organization  may be retained by the  insurance  support  organization  and
     disclosed to other persons.

*    You are  entitled to  receive,  upon  request to  Allianz,  a record of any
     subsequent  disclosures  of  medical  record  information  made by  Allianz
     including the following:

1.   the name,  address and  institutional  affiliation,  if any, of each person
     receiving or examining the medical  information  during the preceding three
     years prior to your receipt of this privacy notice;

2.  the date of the receipt or examination; and

3.  to the extent practicable, a description of the information disclosed.

*For Montana residents only

If you have any questions about our privacy policy, please write, call, or
email:
Allianz Life Insurance Company of North America
PO Box 1344, Minneapolis, MN  55440-1344
800/328-5600, www.allianzlife.com



<PAGE>



APPENDIX a - Condensed Financial Information
--------------------------------------------------------------------------------


The consolidated financial statements of Allianz Life Insurance Company of North
America and the financial  statements of Allianz Life Variable  Account B may be
found in the Statement of Additional Information.

Accumulation  Unit Value  (AUV)  information  corresponding  to the  highest and
lowest  combination of charges is reflected in the tables below. AUV information
reflecting the additional combination of charges is disclosed in the Appendix to
the Statement of Additional Information.

This information should be read in conjunction with the financial statements and
related notes of the Separate Account included in the Statement of Additional
Information.
<TABLE>
<CAPTION>

(Number of units in thousands)        Contract with GMIB and
                                        Earnings Protection                         Standard Contract
                                               1.89%                                       1.49%
                                        ------------------  -------------------------------------------------------------------
                                             Inception     Year or PeriodYear or PeriodYear or PeriodYear or PeriodInception
                                           (11/05/01) to        Ended         Ended        Ended        Ended     (2/3/97) to
Investment Options:                        Dec. 31, 2001    Dec 31, 2001  Dec. 31, 2000Dec. 31, 1999Dec. 31, 1998Dec. 31, 1997
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                <C>              <C>            <C>       <C>            <C>           <C>

USAZ Alliance Capital Growth and Income

Unit value at beginning of period                  NA                 NA           NA           NA           NA            NA

Unit value at end of period                   $10.435            $10.441           NA           NA           NA            NA

Number of units outstanding at end of period        0                 80           NA           NA           NA            NA
------------------------------------------------------------------------------------------------------------------------------------

USAZ Alliance Capital Large Cap Growth

Unit value at beginning of period                  NA                 NA           NA           NA           NA            NA

Unit value at end of period                   $10.518            $10.525           NA           NA           NA            NA

Number of units outstanding at end of period        0                 51           NA           NA           NA            NA
------------------------------------------------------------------------------------------------------------------------------------

USAZ Alliance Capital Technology

Unit value at beginning of period                  NA                 NA           NA           NA           NA            NA

Unit value at end of period                   $10.737            $10.744           NA           NA           NA            NA

Number of units outstanding at end of period        0                149           NA           NA           NA            NA
------------------------------------------------------------------------------------------------------------------------------------

Franklin Global Communications Securities

Unit value at beginning of period                  NA            $25.518      $38.572      $28.082      $25.635       $20.526

Unit value at end of period                   $16.888            $17.788      $25.518      $38.572      $28.082       $25.635

Number of units outstanding at end of period        0              1,314        1,588        1,418        1,006           310
------------------------------------------------------------------------------------------------------------------------------------

Franklin Growth and Income Securities

Unit value at beginning of period                  NA            $30.099      $25.891      $25.993      $24.354       $19.351

Unit value at end of period                   $27.609            $29.053      $30.099      $25.891      $25.993       $24.354

Number of units outstanding at end of period        0              4,359        4,691        5,570        5,185         2,376
------------------------------------------------------------------------------------------------------------------------------------

Franklin High Income

Unit value at beginning of period                  NA            $17.739      $20.695      $21.020      $21.141       $19.237

Unit value at end of period                   $17.315            $18.220      $17.739      $20.695      $21.020       $21.141

Number of units outstanding at end of period        0              2,807        3,269        4,118        4,191         2,202
------------------------------------------------------------------------------------------------------------------------------------

Franklin Income Securities

Unit value at beginning of period                  NA             $28.421     $24.084      $24.898      $24.864       $21.554

Unit value at end of period                   $26.869            $28.273      $28.421      $24.084      $24.898       $24.864

Number of units outstanding at end of period        0              3,485        3,577        4,380        4,239         2,094
------------------------------------------------------------------------------------------------------------------------------------

Franklin Large Cap Growth Securities

Unit value at beginning of period                  NA             $20.997     $20.152      $15.537      $13.110       $11.247

Unit value at end of period                   $17.944             $18.356     $20.997      $20.152      $15.537       $13.110

Number of units outstanding at end of period        0               6,822       7,938        7,521        4,502         1,957
------------------------------------------------------------------------------------------------------------------------------------

Franklin Real Estate

Unit value at beginning of period                  NA             $27.529     $21.176      $22.901      $27.944       $23.499

Unit value at end of period                   $27.883             $29.340     $27.529      $21.176      $22.901       $27.944

Number of units outstanding at end of period        0               1,185       1,336        1,490        1,823         1,217
------------------------------------------------------------------------------------------------------------------------------------

Franklin Rising Dividends Securities

Unit value at beginning of period                  NA             $22.317     $18.712      $21.034      $19.968       $15.235

Unit value at end of period                   $24.073             $25.041     $22.317      $18.712      $21.034       $19.968

Number of units outstanding at end of period        0               3,084       3,128        4,137        4,428         1,991
------------------------------------------------------------------------------------------------------------------------------------

Franklin Small Cap

Unit value at beginning of period                  NA            $23.767      $28.247      $14.558      $14.923       $12.899

Unit value at end of period                   $19.412            $19.898      $23.767      $28.247      $14.558       $14.923

Number of units outstanding at end of period        0              5,025        5,728        5,460        5,492         2,965
------------------------------------------------------------------------------------------------------------------------------------

Franklin Small Cap Value Securities

Unit value at beginning of period                  NA             $9.530       $7.724       $7.713      $10.000            NA

Unit value at end of period                   $10.566            $10.722       $9.530       $7.724       $7.713            NA

Number of units outstanding at end of period        0              1,364          867          603          367            NA
------------------------------------------------------------------------------------------------------------------------------------

Franklin U.S. Government

Unit value at beginning of period                  NA            $20.264      $18.394      $18.847      $17.805       $16.533

Unit value at end of period                   $20.414            $21.483      $20.264      $18.394      $18.847       $17.805

Number of units outstanding at end of period        0              3,480        3,294        3,857        3,040         1,359
------------------------------------------------------------------------------------------------------------------------------------
Franklin Zero Coupon 2005

Unit value at beginning of period                  NA            $25.489      $22.983      $24.786      $22.357       $20.375

Unit value at end of period                   $25.988            $27.353      $25.489      $22.983      $24.786       $22.357

Number of units outstanding at end of period        0                515          508          555          380           161
------------------------------------------------------------------------------------------------------------------------------------

Franklin Zero Coupon 2010

Unit value at beginning of period                  NA            $27.989      $23.929      $27.674      $24.544       $21.371

Unit value at end of period                   $27.674            $29.123      $27.989      $23.929      $27.674       $24.544

Number of units outstanding at end of period        3                462          575          668          478           150
------------------------------------------------------------------------------------------------------------------------------------

Mutual Discovery Securities

Unit value at beginning of period                  NA            $14.867      $13.662      $11.205      $11.971       $10.179

Unit value at end of period                   $14.404            $14.703      $14.867      $13.662      $11.205       $11.971

Number of units outstanding at end of period        0              6,442        7,118        7,820        8,822         5,461
------------------------------------------------------------------------------------------------------------------------------------

Mutual Shares Securities

Unit value at beginning of period                  NA            $14.776      $13.199      $11.814      $11.981       $10.329

Unit value at end of period                   $15.302            $15.620      $14.776      $13.199      $11.814       $11.981

Number of units outstanding at end of period        0             14,838       15,886       18,924       19,834        11,394
------------------------------------------------------------------------------------------------------------------------------------

Templeton Developing Markets Securities

Unit value at beginning of period                  NA             $8.421      $12.125       $7.958      $10.305       $11.458

Unit value at end of period                    $7.391             $7.626       $8.421      $12.125       $7.958       $10.305

Number of units outstanding at end of period        0              2,441        3,047        3,389        3,425         2,663
------------------------------------------------------------------------------------------------------------------------------------

Templeton Foreign Securities

Unit value at beginning of period                  NA            $21.413      $22.858      $18.322      $17.617       $16.010

Unit value at end of period                   $17.085            $17.772      $21.413      $22.858      $18.322       $17.617

Number of units outstanding at end of period        0              3,729        4,027        4,164        4,427         3,122
------------------------------------------------------------------------------------------------------------------------------------

Templeton Growth Securities

Unit value at beginning of period                  NA            $19.410      $19.364      $16.238      $15.124       $13.525

Unit value at end of period                   $18.351            $18.933      $19.410      $19.364      $16.238       $15.124

Number of units outstanding at end of period        0              7,387        8,239        9,008        8,864         5,525
------------------------------------------------------------------------------------------------------------------------------------

USAZ Templeton Developed Markets

Unit value at beginning of period                  NA                 NA           NA           NA           NA            NA

Unit value at end of period                   $10.219            $10.225           NA           NA           NA            NA

Number of units outstanding at end of period        0                 12           NA           NA           NA            NA
------------------------------------------------------------------------------------------------------------------------------------

SP Jennison International Growth

Unit value at beginning of period                  NA                 NA           NA           NA           NA            NA

Unit value at end of period                    $5.334             $5.356           NA           NA           NA            NA

Number of units outstanding at end of period        0                 23           NA           NA           NA            NA
------------------------------------------------------------------------------------------------------------------------------------

SP Jennison Strategic Partners Focused Growth

Unit value at beginning of period                  NA                 NA           NA           NA           NA            NA

Unit value at end of period                    $6.572             $6.599           NA           NA           NA            NA

Number of units outstanding at end of period        0                 46           NA           NA           NA            NA
------------------------------------------------------------------------------------------------------------------------------------

PIMCO VIT High Yield

Unit value at beginning of period                  NA                 NA           NA           NA           NA            NA

Unit value at end of period                    $9.848             $9.923           NA           NA           NA            NA

Number of units outstanding at end of period        0                103           NA           NA           NA            NA
------------------------------------------------------------------------------------------------------------------------------------

PIMCO VIT StocksPLUS Growth and Income

Unit value at beginning of period                  NA                 NA           NA           NA           NA            NA

Unit value at end of period                    $8.189             $8.252           NA           NA           NA            NA

Number of units outstanding at end of period        0                 14           NA           NA           NA            NA
------------------------------------------------------------------------------------------------------------------------------------

PIMCO VIT Total Return

Unit value at beginning of period                  NA                 NA           NA           NA           NA            NA

Unit value at end of period                   $11.610            $11.699           NA           NA           NA            NA

Number of units outstanding at end of period        0                159           NA           NA           NA            NA
------------------------------------------------------------------------------------------------------------------------------------

USAZ PIMCO Growth and Income

Unit value at beginning of period                  NA                 NA           NA           NA           NA            NA

Unit value at end of period                   $10.132            $10.139           NA           NA           NA            NA

Number of units outstanding at end of period        0                 43           NA           NA           NA            NA
------------------------------------------------------------------------------------------------------------------------------------

USAZ PIMCO Renaissance

Unit value at beginning of period                  NA                 NA           NA           NA           NA            NA

Unit value at end of period                   $10.987            $10.994           NA           NA           NA            NA

Number of units outstanding at end of period        2                287           NA           NA           NA            NA
------------------------------------------------------------------------------------------------------------------------------------

USAZ PIMCO Value

Unit value at beginning of period                  NA                 NA           NA           NA           NA            NA

Unit value at end of period                   $10.929            $10.936           NA           NA           NA            NA

Number of units outstanding at end of period        0                108           NA           NA           NA            NA

------------------------------------------------------------------------------------------------------------------------------------
USAZ Money Market

Unit value at beginning of period                  NA                 NA           NA           NA           NA            NA

Unit value at end of period                   $10.481            $10.561           NA           NA           NA            NA

Number of units outstanding at end of period        1                659           NA           NA           NA            NA
------------------------------------------------------------------------------------------------------------------------------------

USAZ Van Kampen Aggressive Growth

Unit value at beginning of period                  NA                 NA           NA           NA           NA            NA

Unit value at end of period                    $7.998             $8.019           NA           NA           NA            NA

Number of units outstanding at end of period        0                 53           NA           NA           NA            NA
------------------------------------------------------------------------------------------------------------------------------------

USAZ Van Kampen Comstock

Unit value at beginning of period                  NA                 NA           NA           NA           NA            NA

Unit value at end of period                    $9.300             $9.325           NA           NA           NA            NA

Number of units outstanding at end of period        0                254           NA           NA           NA            NA
------------------------------------------------------------------------------------------------------------------------------------

USAZ Van Kampen Emerging Growth

Unit value at beginning of period                  NA                 NA           NA           NA           NA            NA

Unit value at end of period                    $9.104             $9.128           NA           NA           NA            NA

Number of units outstanding at end of period        0                 81           NA           NA           NA            NA
------------------------------------------------------------------------------------------------------------------------------------

USAZ Van Kampen Growth and Income

Unit value at beginning of period                  NA                 NA           NA           NA           NA            NA

Unit value at end of period                    $9.636             $9.662           NA           NA           NA            NA

Number of units outstanding at end of period        0                116           NA           NA           NA            NA
------------------------------------------------------------------------------------------------------------------------------------

USAZ Van Kampen Growth

Unit value at beginning of period                  NA                 NA           NA           NA           NA            NA

Unit value at end of period                    $9.489             $9.514           NA           NA           NA            NA

Number of units outstanding at end of period        0                 58           NA           NA           NA            NA
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>



There are no  accumulation  units shown for the USAZ AIM Basic Value Fund,  USAZ
AIM  Blue  Chip  Fund,  USAZ  AIM  Dent   Demographic   Trends  Fund,  USAZ  AIM
International  Equity  Fund,  Davis  VA  Financial  Portfolio,  Davis  VA  Value
Portfolio,  Dreyfus  Small Cap Stock  Index  Fund,  Dreyfus  Stock  Index  Fund,
Jennison  20/20  Focus  Portfolio,   Oppenheimer   Global  Securities   Fund/VA,
Oppenheimer  High  Income  Fund/VA,  Oppenheimer  Main  Street  Growth  & Income
Fund/VA,  USAZ Oppenheimer Emerging Growth Fund and the Seligman Small-Cap Value
Portfolio  because they  commenced  operations  under this Contract as of May 1,
2002.







                                  PART B - SAI



                       STATEMENT OF ADDITIONAL INFORMATION
                                 VALUEMARK(R) IV
                           INDIVIDUAL FLEXIBLE PAYMENT
                           VARIABLE ANNUITY CONTRACTS
                                    ISSUED BY
                         ALLIANZ LIFE VARIABLE ACCOUNT B
                                       AND
                 ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
                                   MAY 1, 2003


THIS IS NOT A PROSPECTUS. THIS STATEMENT OF ADDITIONAL INFORMATION SHOULD BE
READ IN CONJUNCTION WITH THE PROSPECTUS FOR THE INDIVIDUAL FLEXIBLE PAYMENT
VARIABLE ANNUITY CONTRACTS WHICH ARE REFERRED TO HEREIN.


THE PROSPECTUS CONCISELY SETS FORTH INFORMATION THAT A PROSPECTIVE INVESTOR
OUGHT TO KNOW BEFORE INVESTING. FOR A COPY OF THE PROSPECTUS, CALL OR WRITE
ALLIANZ LIFE AT: 5701 GOLDEN HILLS DRIVE, MINNEAPOLIS, MN 55416 , (800)
542-5427.



THIS STATEMENT OF ADDITIONAL INFORMATION AND THE PROSPECTUS ARE DATED MAY 1,
2003, AND AS MAY BE AMENDED FROM TIME TO TIME.


TABLE OF CONTENTS                                  PAGE
Ratings Agencies ................................     2
Experts .........................................     2
Legal Opinions ..................................     2
Distributor .....................................     2
Reduction or Elimination of the
 Contingent Deferred Sales Charge ...............     2
Calculation of Performance Data .................     3
Federal Tax Status ..............................    10
Annuity Provisions ..............................    15
Mortality and Expense Risk Guarantee ............    16
Financial Statements ............................    16
Appendix A - Illustrations.......................    17
Appendix B - Condensed Financial Information.....    32









                                                                   V4SAI-0503


<PAGE>




RATINGS AGENCIES
-------------------------------------------------------------------------------

We receive ratings from the independent rating agencies of A.M. Best and
Moody's. A.M. Best and Moody's rate insurance companies for their financial
strength. These agencies evaluate the financial soundness and claims-paying
ability of insurance companies based on a number of different factors. This
information does not relate to the management or performance of the subaccounts
of the Separate Account. This information relates only to our general account
and reflects our ability to make Annuity Payments and to pay death benefits and
other distributions from the Contract. For detailed information on the current
agency ratings given to Allianz Life and on the rating categories that have been
established by the agencies, contact your registered representative.

EXPERTS
--------------------------------------------------------------------------------


The financial statements of Allianz Life Variable Account B as of and for the
year ended December 31, 2001 and the consolidated financial statements of
Allianz Life as of December 31, 2001 and 2000 and for each of the years in the
three years ended December 31, 2001 have been included in this Statement of
Additional Information in reliance upon the reports of __________, independent
accountants, included in this Statement of Additional Information and upon the
authority of said firm as experts in accounting and auditing.


The Allianz Life audit report refers to a change in its method of accounting for
derivative instruments in 2001 and a change in its method of calculating
deferred acquisition costs and future benefit reserves for two-tiered annuities
in 1999. The principal business address of KPMG LLP is 4200 Wells Fargo Center,
Minneapolis, MN.


LEGAL OPINIONS
--------------------------------------------------------------------------------

Stewart Gregg, Senior Counsel to Allianz Life, has provided legal advice on
certain matters in connection with the issuance of the Contracts.

DISTRIBUTOR
--------------------------------------------------------------------------------

USAllianz Investor Services, LLC, a subsidiary of Allianz Life , acts as the
distributor. The offering is on a continuous basis.

REDUCTION OR ELIMINATION OF THE
CONTINGENT DEFERRED SALES CHARGE
--------------------------------------------------------------------------------


The amount of the contingent deferred sales charge on the Contracts may be
reduced or eliminated when sales of the Contracts are made to individuals or to
a group of individuals in a manner that results in savings of sales expenses.
The entitlement to a reduction of the contingent deferred sales charge will be
determined by Allianz Life after examination of the following factors: 1) the
size of the group; 2) the total amount of purchase payments expected to be
received from the group; 3) the nature of the group for which the Contracts are
purchased, and the persistency expected in that group; 4) the purpose for which
the Contracts are purchased and whether that purpose makes it likely that
expenses will be reduced; and 5) any other circumstances which Allianz Life
believes to be relevant to determining whether reduced sales or administrative
expenses may be expected. None of the reductions in charges for sales is
Contractually guaranteed.

The contingent deferred sales charge may be eliminated when the Contracts are
issued to an officer, director or employee of Allianz Life or any of its
affiliates. The contingent deferred sales charge may be reduced or eliminated
when the Contract is sold by an agent of Allianz Life to any members of his or
her immediate family and the commission is waived. In no event will any
reduction or elimination of the contingent deferred sales charge be permitted
where the reduction or elimination will be unfairly discriminatory to any
person.


CALCULATION OF PERFORMANCE DATA
----------------------------------------------------------------------- --------

TOTAL RETURN


From time to time, Allianz Life may advertise the performance data for the
divisions of the separate account (also known as subaccounts), in sales
literature, advertisements, personalized hypothetical illustrations, and
Contract Owner communications. Such data will show the percentage change in the
value of an Accumulation Unit based on the performance of a subaccount over a
stated period of time which is determined by dividing the increase (or decrease)
in value for that unit by the Accumulation Unit value at the beginning of the
period.

Any such performance data will include total return figures for the one, five,
and ten year (or since inception) time periods indicated. Such total return
figures will reflect the deduction of the mortality and expense risk charge, the
administrative charge, the operating expenses of the Investment Options and any
applicable contingent deferred sales charge and Contract maintenance charge
("Standardized Total Return"). The contingent deferred sales charge and Contract
maintenance charge deductions are calculated assuming a Contract is surrendered
at the end of the reporting period.


The hypothetical value of a Contract purchased for the time periods described
will be determined by using the actual Accumulation Unit values for an initial
$1,000 Purchase Payment, and deducting any applicable Contract maintenance
charges and any applicable contingent deferred sales charges to arrive at the
ending hypothetical value. The average annual total return is then determined by
computing the fixed interest rate that a $1,000 Purchase Payment would have to
earn annually, compounded annually, to grow to the hypothetical value at the end
of the time periods described. The formula used in these calculations is:

                                  P(1+T)n = ERV
where:
P = a hypothetical initial payment of $1,000;
T = average annual total return;
n = number of years;
ERV = ending redeemable value of a hypothetical $1,000
payment made at the beginning of the time periods used at the end of such time
periods (or fractional portion thereof).


Allianz Life may also advertise performance data which will be calculated in the
same manner as described above but which will not reflect the deduction of the
contingent deferred sales charge and the Contract maintenance charge. Allianz
Life may also advertise cumulative and average total return information over
different periods of time. Allianz Life may also present performance information
computed on a different basis ("Non-Standardized Total Return").


Cumulative total return is calculated in a similar manner, except that the
results are not annualized. Each calculation assumes that no sales load is
deducted from the initial $1,000 payment at the time it is allocated to the
Investment Options and assumes that the income earned by the investment in the
Investment Option is reinvested.

Contract Owners should note that investment results will fluctuate over time,
and any presentation of total return for any period should not be considered as
a representation of what an investment may earn or what a Contract Owner's total
return may be in any future period.

YIELD


THE USAZ MONEY MARKET FUND. Allianz Life may advertise yield information for the
USAZ Money Market Fund. The USAZ Money Market Fund's current yield may vary each
day, depending upon, among other things, the average maturity of the Investment
Option's investment securities and changes in interest rates, operating
expenses, the deduction of the mortality and expense risk charge, the
administrative charge and the Contract maintenance charge and, in certain
instances, the value of the Investment Option's investment securities. The fact
that the subaccount's current yield will fluctuate and that the principal is not
guaranteed should be taken into consideration when using the subaccount's
current yield as a basis for comparison with savings accounts or other
fixed-yield investments. The yield at any particular time is not indicative of
what the yield may be at any other time.


The USAZ Money Market Fund's current yield is computed on a base period return
of a hypothetical Contract having a beginning balance of one Accumulation Unit
for a particular period of time (generally seven days). The return is determined
by dividing the net change (exclusive of any capital changes) in such
Accumulation Unit by its beginning value, and then multiplying it by 365/7 to
get the annualized current yield. The calculation of net change reflects the
value of additional shares purchased with the dividends paid by the Investment
Option, and the deduction of the mortality and expense risk charge, the
administrative charge and Contract maintenance charge. The effective yield
reflects the effects of compounding and represents an annualization of the
current return with all dividends reinvested.

(Effective yield = [(Base Period Return + 1)365/7] - 1.)


For the seven-day period ending on December 31, 2002, the USAZ Money Market
Investment Option had a current yield of ____% and an effective yield of____%.


Other Investment Options. Allianz Life may also quote yield in sales literature,
advertisements, personalized hypothetical illustrations, and Contract Owner
communications for the other Investment Options. Each Investment Options (other
than the USAZ Money Market Fund) will publish standardized total return
information with any quotation of current yield.

The yield computation is determined by dividing the net investment income per
Accumulation Unit earned during the period (minus the deduction for the
mortality and expense risk charge, administrative charge and Contract
maintenance charge) by the Accumulation Unit value on the last day of the period
and annualizing the resulting figure, according to the following formula:

         Yield = 2 [((A-B) + 1)6 - 1]
                    -------
                     cd
where:
a = net investment income earned during the period by the Investment Options
     attributable to shares owned  by the subaccount;
b = expenses accrued for the period (net of reimbursements);
c = the average daily number of Accumulation Units outstanding during the
period;
d = the maximum offering price per Accumulation Unit on the last day of
the period.

The above formula will be used in calculating quotations of yield, based on
specified 30-day periods (or one month) identified in the sales literature,
advertisement, or communication. Yield calculations assume no sales load.
Allianz Life does not currently advertise yield information for any subaccount
(other than the USAZ Money Market Fund).

PERFORMANCE RANKING

Total return may be compared to relevant indices, including U.S. domestic and
international indices and data from Lipper Analytical Services, Inc., Standard &
Poor's Indices, or VARDS(R). From time to time, evaluation of performance by
independent sources may also be used.

PERFORMANCE INFORMATION


Accumulation Unit performance is reflected in the following tables. These charts
show the highest and lowest expenses for New Contracts. High and low expenses
for old Contracts, if shown would be lower. The performance figures in Charts A
and B reflect Accumulation Unit performance from Separate Account inception or,
if later, the date that a particular Investment Option was added to the Separate
Account. Chart A reflects performance for the New Contract with the Traditional
GMDB and GMIB (total Separate Account annual charges of 1.75%). Chart B reflects
performance for the New Contract with the Earnings Protection GMDB and the
Traditional GMIB ( total Separate Account annual charges of 2.20%).

The performance figures in Charts C and D reflect Accumulation Unit performance
from Investment Option inception which may pre-date Separate Account inception
and assumes the Accumulation Units were invested in each of the Investment
Options from the Investment Option inception dates as listed on the table. Chart
C reflects performance for the New Contract with the Traditional GMDB and no
GMIB (total Separate Account annual charges of 1.75%). Chart D reflects
performance for the New Contract with the Earnings Protection GMDB and the
Traditional GMIB (total Separate Account annual charges of 2.20%). Chart E
reflects performance information for the Investment Options which does not
include any Contract fees or expenses.
<TABLE>
<CAPTION>


-------------------------------------------------------------- ------------- ---------------- -----------------
PRODUCT FEATURE                                                TOTAL         ACTUAL           HYPOTHETICAL
                                                               SEPARATE                       PERFORMANCE
                                                               ACCOUNT       PERFORMANCE
                                                               EXPENSES
-------------------------------------------------------------- ------------- ---------------- -----------------
<S>                                                            <C>           <C>              <C>
Traditional GMDB and no GMIB on New Contracts                  1.75%         Chart A          Chart C
-------------------------------------------------------------- ------------- ---------------- -----------------
Earnings Protection GMDB and                                   2.20%         Chart B          Chart D
Traditional GMIB on New Contracts
-------------------------------------------------------------- ------------- ---------------- -----------------
</TABLE>

The performance figures in Column I of each table represent performance figures
for the Accumulation Units which reflects the mortality and expense risk charge,
administrative charge and the operating expenses of the Investment Options, but
not the Contract maintenance charge. Column II represents performance figures
for the Accumulation Units which reflects the deduction of the mortality and
expense risk charge, administrative charge, the operating expenses of the
Investment Options and the Contract maintenance charge.



<PAGE>

<TABLE>
<CAPTION>

[THIS TABLE WILL BE UPDATED UPON AMENDMENT]


CHART A- NEW CONTRACT WITH THE TRADITONAL GMDB AND NO GMIB ( TOTAL ANNUAL
SEPARATE ACCOUNT EXPENSES OF 1.75%)
-----------------------------------------------------------------------------------------------------------------------------------


Total Return for the periods ended December 31, 2002:                                             ACTUAL

                                                   COLUMN I (WITHOUT CHARGES)                  COLUMN II (WITH CHARGES)
-----------------------------------------------------------------------------------------------------------------------------------
                               SEPARATE ACCOUNT
                                   INCEPTION   ONE    THREE    FIVE     TEN     SINCE    ONE     THREE    FIVE     TEN     SINCE
INVESTMENT OPTION                    DATE     YEAR    YEAR     YEAR    YEAR   INCEPTION YEAR     YEAR     YEAR    YEAR   INCEPTION

-----------------------------------------------------------------------------------------------------------------------------------
<S>                                 <C>         <C>      <C>     <C>      <C>      <C>     <C>      <C>     <C>      <C>      <C>
USAZ Alliance Capital Growth and    11/5/2001     N/A      N/A     N/A      N/A     4.43     N/A      N/A     N/A      N/A    -1.67
Income
USAZ Alliance Capital Large Cap     11/5/2001     N/A      N/A     N/A      N/A     5.26     N/A      N/A     N/A      N/A    -0.84
Growth
USAZ Alliance Capital Technology    11/5/2001     N/A      N/A     N/A      N/A     7.45     N/A      N/A     N/A      N/A     1.35
Franklin Global Communications      1/24/1989  -30.29   -14.12   -2.82     1.87     4.55  -36.39   -16.59   -3.68     1.79     4.49
Securities - Class 11
Franklin Growth and Income          1/24/1989   -3.48     3.78    8.47     9.32     8.59   -9.58     2.08    7.89     9.25     8.52
Securities -
Class 11
Franklin High Income - Class 1      1/24/1989    2.71    -4.65   -1.08     4.66     4.74   -3.39    -6.67   -1.90     4.59     4.67
Franklin Income Securities - Class  1/24/1989   -0.52     4.33    5.58     7.64     8.36   -6.62     2.64    4.93     7.57     8.30
11
Franklin Large Cap Growth            5/1/1996  -12.58     5.71   10.29      N/A    11.30  -18.68     4.09    9.75      N/A    10.96
Securities - Class 11
Franklin Real Estate - Class 11,2   1/24/1989    6.58     8.61    4.54     9.52     8.67    0.48     7.05    3.87     9.46     8.61
Franklin Rising Dividends           1/27/1992   12.21     5.98   10.45      N/A     9.68    6.11     4.34    9.91      N/A     9.61
Securities - Class 11
Franklin Small Cap - Class 11       11/1/1995  -16.28    10.98    9.06      N/A    11.80  -22.38     9.51    8.50      N/A    11.56
Franklin Small Cap Value             5/1/1998   12.51    11.61     N/A      N/A     1.92    6.41    10.13     N/A      N/A     0.68
Securities - Class 11
Franklin U.S. Government - Class 1  3/14/1989    6.02     4.46    5.38     5.34     6.15   -0.08     2.78    4.73     5.26     6.08
Franklin Zero Coupon 2005 - Class 1 3/14/1989    7.31     3.34    6.07     7.18     8.17    1.21     1.62    5.43     7.11     8.11
Franklin Zero Coupon 2010 - Class 1 3/14/1989    4.05     1.72    6.39     8.03     8.70   -2.05    -0.06    5.76     7.97     8.64
Mutual Discovery Securities -       11/8/1996   -1.10     9.48    7.63      N/A     7.78   -7.20     7.96    7.03      N/A     7.31
Class 11
Mutual Shares Securities - Class 11 11/8/1996    5.71     9.75    8.62      N/A     9.05   -0.39     8.23    8.04      N/A     8.60
Templeton Developing Markets         3/4/1996   -9.45    -1.41   -7.82      N/A    -3.41  -15.55    -3.28   -8.91      N/A    -3.52
Securities - Class 11,3
Templeton Foreign Securities -       5/1/1992  -17.00    -1.01    2.11      N/A     5.96  -23.10    -2.87    1.39      N/A     5.89
Class 11,3,4
Templeton Growth Securities -       3/15/1994   -2.46     5.25    6.96      N/A     8.52   -8.56     3.60    6.35      N/A     8.45
Class 11
USAZ Templeton Developed Markets -  11/5/2001     N/A      N/A     N/A      N/A     2.27     N/A      N/A     N/A      N/A    -3.83
Class 1
SP Jennison International Growth    12/15/2000 -36.88      N/A     N/A      N/A   -35.90  -42.98      N/A     N/A      N/A   -41.09
SP Strategic Partners Focused       12/15/2000 -16.98      N/A     N/A      N/A   -20.45  -23.08      N/A     N/A      N/A   -25.59
Growth
PIMCO VIT High Yield                 2/1/2000    0.84      N/A     N/A      N/A    -0.41   -5.26      N/A     N/A      N/A    -3.22
PIMCO VIT StocksPLUS Growth &        2/1/2000  -12.75      N/A     N/A      N/A   -10.13  -18.85      N/A     N/A      N/A   -13.22
Income
PIMCO VIT Total Return               2/1/2000    6.78      N/A     N/A      N/A     8.90    0.68      N/A     N/A      N/A     6.31
USAZ PIMCO Growth and Income        11/5/2001     N/A      N/A     N/A      N/A     1.40     N/A      N/A     N/A      N/A    -4.70
USAZ PIMCO Renaissance              11/5/2001     N/A      N/A     N/A      N/A     9.95     N/A      N/A     N/A      N/A     3.85
USAZ PIMCO Value                    11/5/2001     N/A      N/A     N/A      N/A     9.38     N/A      N/A     N/A      N/A     3.28
USAZ Money Market                    2/1/2000    1.74      N/A     N/A      N/A     2.89   -4.36      N/A     N/A      N/A     0.16
USAZ Van Kampen Aggressive Growth    5/1/2001     N/A      N/A     N/A      N/A   -19.80     N/A      N/A     N/A      N/A   -25.90
USAZ Van Kampen Comstock             5/1/2001     N/A      N/A     N/A      N/A    -6.56     N/A      N/A     N/A      N/A   -12.66
USAZ Van Kampen Emerging Growth      5/1/2001     N/A      N/A     N/A      N/A    -8.22     N/A      N/A     N/A      N/A   -14.32
USAZ Van Kampen Growth and Income    5/1/2001     N/A      N/A     N/A      N/A    -3.38     N/A      N/A     N/A      N/A    -9.48
USAZ Van Kampen Growth               5/1/2001     N/A      N/A     N/A      N/A    -4.85     N/A      N/A     N/A      N/A   -10.95
------------------------------------------------------------------------------------------------------------------------------------

1. Ongoing stock market volatility can dramatically change the Investment
Options' short-term performance; current results may differ.

2. These returns reflect periods of rapidly rising stock markets and such gains
may not continue.

3. Performance prior to the 5/1/00 merger reflects the historical performance of
the Templeton Developing Markets and Foreign Securities Investment Options.

4. For Templeton Foreign Securities Fund, performance prior to the 5/1/00 merger
reflects the historical performance of Templeton International Fund.

There is no performance shown for the USAZ AIM Basic Value Fund, USAZ AIM Blue
Chip Fund, USAZ AIM Dent Demographic Trends Fund, USAZ AIM International Equity
Fund, Davis VA Financial Portfolio, Davis VA Value Portfolio, Dreyfus Small Cap
Stock Index Fund, Dreyfus Stock Index Fund, Jennison 20/20 Focus Portfolio,
Oppenheimer Global Securities Fund/VA, Oppenheimer High Income Fund/VA,
Oppenheimer Main Street Growth & Income Fund/VA, USAZ Oppenheimer Emerging
Growth Fund and the Seligman Small-Cap Value Portfolio because they commenced
operations under this Contract as of May 1, 2002.

</TABLE>

<PAGE>

<TABLE>
<CAPTION>

[THIS TABLE WILL BE UPDATED UPON AMENDMENT]


CHART B-NEW CONTRACT WITH THE EARNINGS PROTECTION GMDB AND THE TRADITIONAL GMIB
(TOTAL ANNUAL SEPARATE ACCOUNT EXPENSES OF 2.20%)
------------------------------------------------------------------------------------------------------------------------------------


Total Return for the periods ended December 31, 2002:                                             ACTUAL

                                                   COLUMN I (WITHOUT CHARGES)                  COLUMN II (WITH CHARGES)
-----------------------------------------------------------------------------------------------------------------------------------
                               SEPARATE ACCOUNT
                                   INCEPTION   ONE    THREE    FIVE     TEN     SINCE    ONE     THREE    FIVE     TEN     SINCE
INVESTMENT OPTION                    DATE     YEAR    YEAR     YEAR    YEAR   INCEPTION YEAR     YEAR     YEAR    YEAR   INCEPTION

------------------------------------------------------------------------------------------------------------------------------------

<S>                                 <C>         <C>      <C>     <C>      <C>      <C>     <C>      <C>     <C>      <C>      <C>
USAZ Alliance Capital Growth and   11/5/2001     N/A      N/A     N/A      N/A     4.36     N/A      N/A     N/A      N/A   -1.74
Income
USAZ Alliance Capital Large Cap    11/5/2001     N/A      N/A     N/A      N/A     5.19     N/A      N/A     N/A      N/A   -0.91
Growth
USAZ Alliance Capital Technology   11/5/2001     N/A      N/A     N/A      N/A     7.39     N/A      N/A     N/A      N/A    1.29
Franklin Global Communications     1/24/1989  -30.57   -14.46   -3.21     1.45     4.13  -36.67   -16.96   -4.08     1.38    4.07
Securities - Class 11
Franklin Growth and Income         1/24/1989   -3.86     3.36    8.03     8.88     8.16   -9.96     1.65    7.45     8.81    8.09
Securities -
Class 11
Franklin High Income - Class 1     1/24/1989    2.30    -5.03   -1.48     4.24     4.33   -3.80    -7.07   -2.31     4.17    4.26
Franklin Income Securities -       1/24/1989   -0.92     3.91    5.16     7.21     7.94   -7.02     2.21    4.50     7.14    7.87
Class 11
Franklin Large Cap Growth           5/1/1996  -12.93     5.29    9.85      N/A    10.86  -19.03     3.65    9.31      N/A   10.51
Securities - Class 11
Franklin Real Estate - Class 11,2  1/24/1989    6.15     8.18    4.12     9.08     8.25    0.05     6.60    3.44     9.02    8.18
Franklin Rising Dividends          1/27/1992   11.76     5.56   10.01      N/A     9.25    5.66     3.91    9.46      N/A    9.17
Securities - Class 11
Franklin Small Cap - Class 11      11/1/1995  -16.61    10.53    8.62      N/A    11.35  -22.71     9.05    8.05      N/A   11.11
Franklin Small Cap Value            5/1/1998   12.06    11.16     N/A      N/A     1.51    5.96     9.67     N/A      N/A    0.26
Securities - Class 11
Franklin U.S. Government - Class 1 3/14/1989    5.59     4.04    4.96     4.92     5.73   -0.51     2.35    4.30     4.84    5.66
Franklin Zero Coupon 2005 - Class  3/14/1989    6.88     2.93    5.64     6.75     7.74    0.78     1.19    5.00     6.68    7.68
1
Franklin Zero Coupon 2010 - Class  3/14/1989    3.64     1.31    5.96     7.60     8.27   -2.46    -0.48    5.33     7.53    8.21
1
Mutual Discovery Securities -      11/8/1996   -1.50     9.04    7.20      N/A     7.35   -7.60     7.51    6.60      N/A    6.87
Class 11
Mutual Shares Securities - Class   11/8/1996    5.29     9.32    8.19      N/A     8.61   -0.81     7.78    7.60      N/A    8.16
11
Templeton Developing Markets        3/4/1996   -9.81    -1.81   -8.19      N/A    -3.80  -15.91    -3.69   -9.29      N/A   -3.91
Securities - Class 11,3
Templeton Foreign Securities -      5/1/1992  -17.34    -1.41    1.70      N/A     5.54  -23.44    -3.28    0.97      N/A    5.47
Class 11,3,4
Templeton Growth Securities -      3/15/1994   -2.85     4.83    6.53      N/A     8.09   -8.95     3.17    5.91      N/A    8.02
Class 11
USAZ Templeton Developed Markets   11/5/2001     N/A      N/A     N/A      N/A     2.20     N/A      N/A     N/A      N/A   -3.90
- Class 1
SP Jennison International Growth   12/15/2000 -37.13      N/A     N/A      N/A   -36.15  -43.23      N/A     N/A      N/A  -41.34
SP Strategic Partners Focused      12/15/2000 -17.31      N/A     N/A      N/A   -20.77  -23.41      N/A     N/A      N/A  -25.91
Growth
PIMCO VIT High Yield                2/1/2000    0.43      N/A     N/A      N/A    -0.81   -5.67      N/A     N/A      N/A   -3.63
PIMCO VIT StocksPLUS Growth &       2/1/2000  -13.10      N/A     N/A      N/A   -10.49  -19.20      N/A     N/A      N/A  -13.59
Income
PIMCO VIT Total Return              2/1/2000    6.35      N/A     N/A      N/A     8.46    0.25      N/A     N/A      N/A    5.86
USAZ PIMCO Growth and Income       11/5/2001     N/A      N/A     N/A      N/A     1.34     N/A      N/A     N/A      N/A   -4.76
USAZ PIMCO Renaissance             11/5/2001     N/A      N/A     N/A      N/A     9.88     N/A      N/A     N/A      N/A    3.78
USAZ PIMCO Value                   11/5/2001     N/A      N/A     N/A      N/A     9.31     N/A      N/A     N/A      N/A    3.21
USAZ Money Market                   2/1/2000    1.33      N/A     N/A      N/A     2.48   -4.77      N/A     N/A      N/A   -0.26
USAZ Van Kampen Aggressive Growth   5/1/2001     N/A      N/A     N/A      N/A   -20.02     N/A      N/A     N/A      N/A  -26.12
USAZ Van Kampen Comstock            5/1/2001     N/A      N/A     N/A      N/A    -6.81     N/A      N/A     N/A      N/A  -12.91
USAZ Van Kampen Emerging Growth     5/1/2001     N/A      N/A     N/A      N/A    -8.46     N/A      N/A     N/A      N/A  -14.56
USAZ Van Kampen Growth and Income   5/1/2001     N/A      N/A     N/A      N/A    -3.64     N/A      N/A     N/A      N/A   -9.74
USAZ Van Kampen Growth              5/1/2001     N/A      N/A     N/A      N/A    -5.11     N/A      N/A     N/A      N/A  -11.21
----------------------------------------------------------------------------------------------------------------------------------

1. Ongoing stock market volatility can dramatically change the Investment
Options' short-term performance; current results may differ.

2. These returns reflect periods of rapidly rising stock markets and such gains
may not continue.

3. Performance prior to the 5/1/00 merger reflects the historical performance of
the Templeton Developing Markets and Foreign Securities Investment Options.

4. For Templeton Foreign Securities Fund, performance prior to the 5/1/00 merger
reflects the historical performance of Templeton International Fund.

There is no performance shown for the USAZ AIM Basic Value Fund, USAZ AIM Blue
Chip Fund, USAZ AIM Dent Demographic Trends Fund, USAZ AIM International Equity
Fund, Davis VA Financial Portfolio, Davis VA Value Portfolio, Dreyfus Small Cap
Stock Index Fund, Dreyfus Stock Index Fund, Jennison 20/20 Focus Portfolio,
Oppenheimer Global Securities Fund/VA, Oppenheimer High Income Fund/VA,
Oppenheimer Main Street Growth & Income Fund/VA, USAZ Oppenheimer Emerging
Growth Fund and the Seligman Small-Cap Value Portfolio because they commenced
operations under this Contract as of May 1, 2002.
</TABLE>
<PAGE>

<TABLE>
<CAPTION>

[THIS TABLE WILL BE UPDATED UPON AMENDMENT]



CHART C- NEW CONTRACT WITH THE TRADITIONAL GMDB AND NO GMIB(TOTAL ANNUAL
SEPARATE ACCOUNT EXPENSES OF 1.75%)
-----------------------------------------------------------------------------------------------------------------------------------


Total Return for the periods ended December 31, 2002:
HYPOTHETICAL

                                                   COLUMN I (WITHOUT CHARGES)                  COLUMN II (WITH CHARGES)
-----------------------------------------------------------------------------------------------------------------------------------
                               INVESTMENT OPTION
                                   INCEPTION   ONE    THREE    FIVE     TEN     SINCE    ONE     THREE    FIVE     TEN     SINCE
INVESTMENT OPTION                    DATE     YEAR    YEAR     YEAR    YEAR   INCEPTION YEAR     YEAR     YEAR    YEAR   INCEPTION

-----------------------------------------------------------------------------------------------------------------------------------
<S>                                 <C>         <C>      <C>     <C>      <C>      <C>     <C>      <C>     <C>      <C>      <C>

                                   11/5/2001     N/A      N/A     N/A      N/A     4.43     N/A      N/A     N/A      N/A   -1.67
USAZ Alliance Capital Growth and
Income
                                   11/5/2001     N/A      N/A     N/A      N/A     5.26     N/A      N/A     N/A      N/A   -0.84
USAZ Alliance Capital Large Cap
Growth
USAZ Alliance Capital Technology   11/5/2001     N/A      N/A     N/A      N/A     7.45     N/A      N/A     N/A      N/A    1.35
Franklin Global Communications     1/24/1989  -30.29   -14.12   -2.82     1.87     4.55  -36.39   -16.59   -3.68     1.79    4.49
Securities - Class 11
Franklin Growth and Income         1/24/1989   -3.48     3.78    8.47     9.32     8.59   -9.58     2.08    7.89     9.25    8.52
Securities -
Class 11
Franklin High Income - Class 1     1/24/1989    2.71    -4.65   -1.08     4.66     4.74   -3.39    -6.67   -1.90     4.59    4.67
Franklin Income Securities -       1/24/1989   -0.52     4.33    5.58     7.64     8.36   -6.62     2.64    4.93     7.57    8.30
Class 11
Franklin Large Cap Growth           5/1/1996  -12.58     5.71   10.29      N/A    11.30  -18.68     4.09    9.75      N/A   10.96
Securities - Class 11
Franklin Real Estate - Class 11,2  1/24/1989    6.58     8.61    4.54     9.52     8.67    0.48     7.05    3.87     9.46    8.61
Franklin Rising Dividends          1/27/1992   12.21     5.98   10.45      N/A     9.68    6.11     4.34    9.91      N/A    9.61
Securities - Class 11
Franklin Small Cap - Class 11      11/1/1995  -16.28    10.98    9.06      N/A    11.80  -22.38     9.51    8.50      N/A   11.56
Franklin Small Cap Value            5/1/1998   12.51    11.61     N/A      N/A     1.92    6.41    10.13     N/A      N/A    0.68
Securities - Class 11
Franklin U.S. Government - Class 1 3/14/1989    6.02     4.46    5.38     5.34     6.15   -0.08     2.78    4.73     5.26    6.08
Franklin Zero Coupon 2005 - Class  3/14/1989    7.31     3.34    6.07     7.18     8.17    1.21     1.62    5.43     7.11    8.11
1
Franklin Zero Coupon 2010 - Class  3/14/1989    4.05     1.72    6.39     8.03     8.70   -2.05    -0.06    5.76     7.97    8.64
1
Mutual Discovery Securities -      11/8/1996   -1.10     9.48    7.63      N/A     7.78   -7.20     7.96    7.03      N/A    7.31
Class 11
Mutual Shares Securities - Class   11/8/1996    5.71     9.75    8.62      N/A     9.05   -0.39     8.23    8.04      N/A    8.60
11
Templeton Developing Markets        3/4/1996   -9.45    -1.41   -7.82      N/A    -3.41  -15.55    -3.28   -8.91      N/A   -3.52
Securities - Class 11,3
Templeton Foreign Securities -      5/1/1992  -17.00    -1.01    2.11      N/A     5.96  -23.10    -2.87    1.39      N/A    5.89
Class 11,3,4
Templeton Growth Securities -      3/15/1994   -2.46     5.25    6.96      N/A     8.52   -8.56     3.60    6.35      N/A    8.45
Class 11
USAZ Templeton Developed Markets   11/5/2001     N/A      N/A     N/A      N/A     2.27     N/A      N/A     N/A      N/A   -3.83
- Class 1
SP Jennison International Growth   12/15/2000 -36.88      N/A     N/A      N/A   -35.90  -42.98      N/A     N/A      N/A  -41.09
SP Strategic Partners Focused      12/15/2000 -16.98      N/A     N/A      N/A   -20.45  -23.08      N/A     N/A      N/A  -25.59
Growth
PIMCO VIT High Yield               4/30/1998    0.84    -0.02     N/A      N/A     0.20   -5.26    -1.85     N/A      N/A   -1.08
PIMCO VIT StocksPLUS Growth &      12/31/1997 -12.75    -2.79     N/A      N/A     4.17  -18.85    -4.72     N/A      N/A    3.13
Income
PIMCO VIT Total Return             12/31/1997   6.78     4.32     N/A      N/A     4.99    0.68     2.64     N/A      N/A    3.96
USAZ PIMCO Growth and Income       11/5/2001     N/A      N/A     N/A      N/A     1.40     N/A      N/A     N/A      N/A   -4.70
USAZ PIMCO Renaissance             11/5/2001     N/A      N/A     N/A      N/A     9.95     N/A      N/A     N/A      N/A    3.85
USAZ PIMCO Value                   11/5/2001     N/A      N/A     N/A      N/A     9.38     N/A      N/A     N/A      N/A    3.28
USAZ Money Market                   2/1/2000    1.74      N/A     N/A      N/A     2.89   -4.36      N/A     N/A      N/A    0.16
USAZ Van Kampen Aggressive Growth   5/1/2001     N/A      N/A     N/A      N/A   -19.80     N/A      N/A     N/A      N/A  -25.90
USAZ Van Kampen Comstock            5/1/2001     N/A      N/A     N/A      N/A    -6.56     N/A      N/A     N/A      N/A  -12.66
USAZ Van Kampen Emerging Growth     5/1/2001     N/A      N/A     N/A      N/A    -8.22     N/A      N/A     N/A      N/A  -14.32
USAZ Van Kampen Growth and Income   5/1/2001     N/A      N/A     N/A      N/A    -3.38     N/A      N/A     N/A      N/A   -9.48
USAZ Van Kampen Growth              5/1/2001     N/A      N/A     N/A      N/A    -4.85     N/A      N/A     N/A      N/A  -10.95
----------------------------------------------------------------------------------------------------------------------------------

1. Ongoing stock market volatility can dramatically change the Investment
Options' short-term performance; current results may differ.

2. These returns reflect periods of rapidly rising stock markets and such gains
may not continue.

3. Performance prior to the 5/1/00 merger reflects the historical performance of
the Templeton Developing Markets and Foreign Securities Investment Options.

4. For Templeton Foreign Securities Fund, performance prior to the 5/1/00 merger
reflects the historical performance of Templeton International Fund.

There is no performance shown for the USAZ AIM Basic Value Fund, USAZ AIM Blue
Chip Fund, USAZ AIM Dent Demographic Trends Fund, USAZ AIM International Equity
Fund, Davis VA Financial Portfolio, Davis VA Value Portfolio, Dreyfus Small Cap
Stock Index Fund, Dreyfus Stock Index Fund, Jennison 20/20 Focus Portfolio,
Oppenheimer Global Securities Fund/VA, Oppenheimer High Income Fund/VA,
Oppenheimer Main Street Growth & Income Fund/VA, USAZ Oppenheimer Emerging
Growth Fund and the Seligman Small-Cap Value Portfolio because they commenced
operations under this Contract as of May 1, 2002.

</TABLE>

<PAGE>

<TABLE>
<CAPTION>

[THIS TABLE WILL BE UPDATED UPON AMENDMENT]



CHART D-NEW CONTRACT WITH THE EARNINGS PROTECTION GMDB AND THE TRADITIONAL GMIB
( TOTAL ANNUAL SEPARATE ACCOUNT EXPENSES OF 2.20%)
-----------------------------------------------------------------------------------------------------------------------------------


Total Return for the periods ended December 31, 2002:
HYPOTHETICAL

                                                   COLUMN I (WITHOUT CHARGES)                  COLUMN II (WITH CHARGES)
------------------------------------------------------------------------------------------------------------------------------------
                               INVESTMENT OPTION
                                   INCEPTION   ONE    THREE    FIVE     TEN     SINCE    ONE     THREE    FIVE     TEN     SINCE
INVESTMENT OPTION                    DATE     YEAR    YEAR     YEAR    YEAR   INCEPTION YEAR     YEAR     YEAR    YEAR   INCEPTION

-----------------------------------------------------------------------------------------------------------------------------------
<S>                                 <C>         <C>      <C>     <C>      <C>      <C>     <C>      <C>     <C>      <C>      <C>

                                   11/5/2001     N/A      N/A     N/A      N/A     4.36     N/A      N/A     N/A      N/A   -1.74
USAZ Alliance Capital Growth and
Income
                                   11/5/2001     N/A      N/A     N/A      N/A     5.19     N/A      N/A     N/A      N/A   -0.91
USAZ Alliance Capital Large Cap
Growth
USAZ Alliance Capital Technology   11/5/2001     N/A      N/A     N/A      N/A     7.39     N/A      N/A     N/A      N/A    1.29
Franklin Global Communications     1/24/1989  -30.57   -14.46   -3.21     1.45     4.13  -36.67   -16.96   -4.08     1.38    4.07
Securities - Class 11
Franklin Growth and Income         1/24/1989   -3.86     3.36    8.03     8.88     8.16   -9.96     1.65    7.45     8.81    8.09
Securities -
----------------------------------
Class 11
Franklin High Income - Class 1     1/24/1989    2.30    -5.03   -1.48     4.24     4.33   -3.80    -7.07   -2.31     4.17    4.26
Franklin Income Securities -       1/24/1989   -0.92     3.91    5.16     7.21     7.94   -7.02     2.21    4.50     7.14    7.87
Class 11
Franklin Large Cap Growth           5/1/1996  -12.93     5.29    9.85      N/A    10.86  -19.03     3.65    9.31      N/A   10.51
Securities - Class 11
Franklin Real Estate - Class 11,2  1/24/1989    6.15     8.18    4.12     9.08     8.25    0.05     6.60    3.44     9.02    8.18
Franklin Rising Dividends          1/27/1992   11.76     5.56   10.01      N/A     9.25    5.66     3.91    9.46      N/A    9.17
Securities - Class 11
Franklin Small Cap - Class 11      11/1/1995  -16.61    10.53    8.62      N/A    11.35  -22.71     9.05    8.05      N/A   11.11
Franklin Small Cap Value            5/1/1998   12.06    11.16     N/A      N/A     1.51    5.96     9.67     N/A      N/A    0.26
Securities - Class 11
Franklin U.S. Government - Class 1 3/14/1989    5.59     4.04    4.96     4.92     5.73   -0.51     2.35    4.30     4.84    5.66
Franklin Zero Coupon 2005 - Class  3/14/1989    6.88     2.93    5.64     6.75     7.74    0.78     1.19    5.00     6.68    7.68
1
Franklin Zero Coupon 2010 - Class  3/14/1989    3.64     1.31    5.96     7.60     8.27   -2.46    -0.48    5.33     7.53    8.21
1
Mutual Discovery Securities -      11/8/1996   -1.50     9.04    7.20      N/A     7.35   -7.60     7.51    6.60      N/A    6.87
Class 11
Mutual Shares Securities - Class   11/8/1996    5.29     9.32    8.19      N/A     8.61   -0.81     7.78    7.60      N/A    8.16
11
Templeton Developing Markets        3/4/1996   -9.81    -1.81   -8.19      N/A    -3.80  -15.91    -3.69   -9.29      N/A   -3.91
Securities - Class 11,3
Templeton Foreign Securities -      5/1/1992  -17.34    -1.41    1.70      N/A     5.54  -23.44    -3.28    0.97      N/A    5.47
Class 11,3,4
Templeton Growth Securities -      3/15/1994   -2.85     4.83    6.53      N/A     8.09   -8.95     3.17    5.91      N/A    8.02
Class 11
USAZ Templeton Developed Markets   11/5/2001     N/A      N/A     N/A      N/A     2.20     N/A      N/A     N/A      N/A   -3.90
- Class 1
SP Jennison International Growth   12/15/2000 -37.13      N/A     N/A      N/A   -36.15  -43.23      N/A     N/A      N/A  -41.34
SP Strategic Partners Focused      12/15/2000 -17.31      N/A     N/A      N/A   -20.77  -23.41      N/A     N/A      N/A  -25.91
Growth
PIMCO VIT High Yield               4/30/1998    0.43    -0.42     N/A      N/A    -0.20   -5.67    -2.27     N/A      N/A   -1.50
PIMCO VIT StocksPLUS Growth &      12/31/1997 -13.10    -3.18     N/A      N/A     3.75  -19.20    -5.13     N/A      N/A    2.70
Income
PIMCO VIT Total Return             12/31/1997   6.35     3.91     N/A      N/A     4.57    0.25     2.21     N/A      N/A    3.53
USAZ PIMCO Growth and Income       11/5/2001     N/A      N/A     N/A      N/A     1.34     N/A      N/A     N/A      N/A   -4.76
USAZ PIMCO Renaissance             11/5/2001     N/A      N/A     N/A      N/A     9.88     N/A      N/A     N/A      N/A    3.78
USAZ PIMCO Value                   11/5/2001     N/A      N/A     N/A      N/A     9.31     N/A      N/A     N/A      N/A    3.21
USAZ Money Market                   2/1/2000    1.33      N/A     N/A      N/A     2.48   -4.77      N/A     N/A      N/A   -0.26
USAZ Van Kampen Aggressive Growth   5/1/2001     N/A      N/A     N/A      N/A   -20.02     N/A      N/A     N/A      N/A  -26.12
USAZ Van Kampen Comstock            5/1/2001     N/A      N/A     N/A      N/A    -6.81     N/A      N/A     N/A      N/A  -12.91
USAZ Van Kampen Emerging Growth     5/1/2001     N/A      N/A     N/A      N/A    -8.46     N/A      N/A     N/A      N/A  -14.56
USAZ Van Kampen Growth and Income   5/1/2001     N/A      N/A     N/A      N/A    -3.64     N/A      N/A     N/A      N/A   -9.74
USAZ Van Kampen Growth              5/1/2001     N/A      N/A     N/A      N/A    -5.11     N/A      N/A     N/A      N/A  -11.21
----------------------------------------------------------------------------------------------------------------------------------

1. Ongoing stock market volatility can dramatically change the Investment
Options' short-term performance; current results may differ.

2. These returns reflect periods of rapidly rising stock markets and such gains
may not continue.

3. Performance prior to the 5/1/00 merger reflects the historical performance of
the Templeton Developing Markets and Foreign Securities Investment Options.

4. For Templeton Foreign Securities Fund, performance prior to the 5/1/00 merger
reflects the historical performance of Templeton International Fund.

There is no performance shown for the USAZ AIM Basic Value Fund, USAZ AIM Blue
Chip Fund, USAZ AIM Dent Demographic Trends Fund, USAZ AIM International Equity
Fund, Davis VA Financial Portfolio, Davis VA Value Portfolio, Dreyfus Small Cap
Stock Index Fund, Dreyfus Stock Index Fund, Jennison 20/20 Focus Portfolio,
Oppenheimer Global Securities Fund/VA, Oppenheimer High Income Fund/VA,
Oppenheimer Main Street Growth & Income Fund/VA, USAZ Oppenheimer Emerging
Growth Fund and the Seligman Small-Cap Value Portfolio because they commenced
operations under this Contract as of May 1, 2002.

</TABLE>

<PAGE>


<TABLE>
<CAPTION>

CHART E- INVESTMENT OPTION PERFORMANCE (NO CONTRACT CHARGES)

Total Return for the periods ended December 31, 2001
____________________________________________________________________________________________
                                                         ONE     FIVE       TEN       SINCE
INVESTMENT OPTION                                       YEAR     YEAR      YEAR     INCEPTION
                                                          %        %         %          %

----------------------------------------------------------------------------------------------
<S>                                                     <C>       <C>       <C>         <C>
USAZ Alliance Capital Growth and Income                   N/A       N/A       N/A        4.67
USAZ Alliance Capital Large Cap Growth                    N/A       N/A       N/A        5.50
USAZ Alliance Capital Technology                          N/A       N/A       N/A        7.70
Franklin Global Communications Securities - Class      -29.24     -1.36      3.47        6.09
11
Franklin Growth and Income Securities - Class 11        -2.02     10.10     11.30       10.21
Franklin High Income - Class 1                           4.26      0.41      6.26        6.30
Franklin Income Securities - Class 11                    0.98      7.16      9.34        9.97
Franklin Large Cap Growth Securities - Class 11        -11.26     11.95       N/A       12.97
Franklin Real Estate - Class 11,2                        8.19      6.11     11.54       10.29
Franklin Rising Dividends Securities - Class 11         13.90     12.11       N/A       11.32
Franklin Small Cap - Class 11                          -15.02     10.69       N/A       13.59
Franklin Small Cap Value Securities - Class 11          14.21       N/A       N/A        3.45
Franklin U.S. Government - Class 1                       7.62      6.96      6.99        7.75
Franklin Zero Coupon 2005 - Class 1                      8.93      7.66      8.93        9.80
Franklin Zero Coupon 2010 - Class 1                      5.62      7.98      9.87       10.34
Mutual Discovery Securities - Class 11                   0.39      9.25       N/A        9.40
Mutual Shares Securities - Class 11                      7.31     10.25       N/A       10.69
Templeton Developing Markets Securities - Class         -8.08    -11.59       N/A      -10.94
11,3
Templeton Foreign Securities - Class 11,3,4            -15.75      4.88       N/A        9.78
Templeton Growth Securities - Class 11                  -0.98      8.56       N/A       10.16
USAZ Templeton Developed Markets - Class 1                N/A       N/A       N/A        2.50
SP Jennison International Growth                       -35.92       N/A       N/A      -37.67
SP Strategic Partners Focused Growth                   -20.80       N/A       N/A      -19.93
PIMCO VIT High Yield - Admin. Class                      2.35       N/A       N/A        1.70
PIMCO VIT StocksPLUS Growth & Income - Admin. Class    -11.43       N/A       N/A        5.73
PIMCO VIT Total Return - Admin. Class                    8.37       N/A       N/A        6.55
USAZ PIMCO Growth and Income                              N/A       N/A       N/A        1.63
USAZ PIMCO Renaissance                                    N/A       N/A       N/A       10.20
USAZ PIMCO Value                                          N/A       N/A       N/A        9.63
USAZ Money Market                                        3.27       N/A       N/A        4.24
USAZ Van Kampen Aggressive Growth                         N/A       N/A       N/A      -19.00
USAZ Van Kampen Comstock                                  N/A       N/A       N/A       -5.63
USAZ Van Kampen Emerging Growth                           N/A       N/A       N/A       -7.80
USAZ Van Kampen Growth and Income                         N/A       N/A       N/A       -2.41
USAZ Van Kampen Growth                                    N/A       N/A       N/A       -3.90
----------------------------------------------------------------------------------------------

1.Ongoing stock market volatility can dramatically change the Investment
  Options' short-term performance; current results may differ.

2.These returns reflect periods of rapidly rising stock markets and such gains
  may not continue.

3.Performance prior to the 5/1/00 merger reflects the historical performance of
  the Templeton Developing Markets and Foreign Securities Investment Options.


4.For Templeton Foreign Securities Fund, performance prior to the 5/1/00 merger
  reflects the historical performance of Templeton International Fund.
</TABLE>

There is no performance shown for the USAZ AIM Basic Value Fund, USAZ AIM Blue
Chip Fund, USAZ AIM Dent Demographic Trends Fund, USAZ AIM International Equity
Fund, Davis VA Financial Portfolio, Davis VA Value Portfolio, Dreyfus Small Cap
Stock Index Fund, Dreyfus Stock Index Fund, Jennison 20/20 Focus Portfolio,
Oppenheimer Global Securities Fund/VA, Oppenheimer High Income Fund/VA,
Oppenheimer Main Street Growth & Income Fund/VA, USAZ Oppenheimer Emerging
Growth Fund and the Seligman Small-Cap Value Portfolio because they commenced
operations under this Contract as of May 1, 2002.



ILLUSTRATIONS
--------------------------------------------------------------------------------

Allianz Life may also provide illustrations to customers. These illustrations
may provide hypothetical depictions of either the "payin," or accumulation
phase, or the "payout," or annuitization phase. Illustrations may be based upon
historical performance of the Investment Options, as adjusted for certain
expenses. (Any adjusted historical performance information will be accompanied
by "standardized" performance information.) In the alternative, certain
illustrations may be based upon an assumed rate of return not to exceed 12%.
"Payin" and "payout" illustrations may have various features, as follows:

o Pay in  illustrations  assume an  initial  lump sum  premium  payment  and are
designed  to show how  adjusted  historical  performance  or an assumed  rate of
return would have affected  Contract  values,  withdrawal  values,  or the death
benefit. Payin illustrations may also be designed to show the effect of periodic
additional  premium payments and  withdrawals.  Payin  illustrations  based upon
adjusted historical performance may assume that monies are allocated to a single
Investment Option or to multiple  Investment  Options.  In the event that monies
are hypothetically allocated to multiple Investment Options,  performance may be
shown on a weighted aggregate basis. Dollar cost averaging illustrations,  which
are based upon adjusted historical  performance,  would compare the hypothetical
effect of a lump sum premium payment into the specified  Investment  Options, as
contrasted  with dollar cost  averaging  into the  Investment  Options over some
period.

o  Payout  illustrations  are  designed  to  show  the  hypothetical  effect  of
annuitizing  a  Contact,  or  receiving  a stream of  periodic  payments.  These
illustrations   may  depict   either  a  variable   annuitization   or  a  fixed
annuitization.  A variable payout illustration would be based upon a combination
of adjusted historical performance and an assumed interest rate (AIR), whereas a
fixed payout  illustration  would be based upon the annuitant's  age, the payout
option selected,  and the payout factor rates currently in effect on the date of
the  illustration.  Variable payout  illustrations  may also show the portion of
each payout that is subject to income tax and the portion  that is  non-taxable.
Where applicable,  a payout illustration will show the effect of the GMIB values
or GMDB that is credited to a Contract in the event of certain annuitizations or
death benefit payouts.  In addition to variable and fixed payout  illustrations,
an  illustration  may also be prepared  showing  the effect of required  minimum
distribution payments from qualified Contracts.

The values illustrated will be calculated reflecting the deduction of Investment
Option expenses for the specific Investment Options selected, mortality and
expense risk charges, and other Contract charges. Contract maintenance charges
may or may not be deducted from a particular illustration. For fixed payin
illustrations, where no Investment Options are selected, an arithmetic average
of Investment Option expenses will be reflected. The amount of the mortality and
expense risk charges charges shown in an illustration will vary, depending upon
the Contract features you select. For surrender values, the contingent deferred
sales charges are also reflected. Illustrations will not reflect the deduction
of any state premium tax or any Federal or state income tax or penalties.

The illustrations that are given to customers by Allianz Life are designed to
assist customers in understanding how a Contract may function in different
scenarios. They are not guarantees or representations as to future performance
or any specific rate of return.

A sample format of a customer illustration is attached as Appendix A to the
Statement of Additional Information and is incorporated herein by reference.
-------------------------------------------------------------------------------


FEDERAL TAX STATUS

NOTE: THE FOLLOWING DESCRIPTION IS BASED UPON ALLIANZ LIFE'S UNDERSTANDING OF
CURRENT FEDERAL INCOME TAX LAW APPLICABLE TO ANNUITIES IN GENERAL. ALLIANZ LIFE
CANNOT PREDICT THE PROBABILITY THAT ANY CHANGES IN SUCH LAWS WILL BE MADE.
PURCHASERS ARE CAUTIONED TO SEEK COMPETENT TAX ADVICE REGARDING THE POSSIBILITY
OF SUCH CHANGES. ALLIANZ LIFE DOES NOT GUARANTEE THE TAX STATUS OF THE
CONTRACTS. PURCHASERS BEAR THE COMPLETE RISK THAT THE CONTRACTS MAY NOT BE
TREATED AS "ANNUITY CONTRACTS" UNDER FEDERAL INCOME TAX LAWS. IT SHOULD BE
FURTHER UNDERSTOOD THAT THE FOLLOWING DISCUSSION IS NOT EXHAUSTIVE AND THAT
SPECIAL RULES NOT DESCRIBED HEREIN MAY BE APPLICABLE IN CERTAIN SITUATIONS.
MOREOVER, NO ATTEMPT HAS BEEN MADE TO CONSIDER ANY APPLICABLE STATE OR OTHER TAX
LAWS.

GENERAL

Section 72 of the Internal Revenue Code of 1986, as amended ("Code") governs
taxation of annuities in general. A Contract Owner is not taxed on increases in
the value of a Contract until distribution occurs, either in the form of a lump
sum payment or as annuity payments under the Annuity Option elected. For a lump
sum payment received as a total surrender (total redemption) or death benefit,
the recipient is taxed on the portion of the payment that exceeds the cost basis
of the Contract. For Non-Qualified Contracts, this cost basis is generally the
purchase payments, while for Qualified Contracts there may be no cost basis. The
taxable portion of the lump sum payment is taxed at ordinary income tax rates.

For annuity payments, a portion of each payment in excess of an exclusion amount
is includible in taxable income. The exclusion amount for payments based on a
fixed annuity option is determined by multiplying the payment by the ratio that
the cost basis of the Contract (adjusted for any period certain or refund
feature) bears to the expected return under the Contract. The exclusion amount
for payments based on a variable annuity option is determined by dividing the
cost basis of the Contract (adjusted for any period certain or refund guarantee)
by the number of years over which the annuity is expected to be paid. Payments
received after the investment in the Contract has been recovered (i.e. when the
total of the excludible amounts equal the investment in the Contract) are fully
taxable. The taxable portion is taxed at ordinary income rates. For certain
types of Qualified Plans there may be no cost basis in the Contract within the
meaning of Section 72 of the Code. Contract Owners, annuitants and beneficiaries
under the Contracts should seek competent financial advice about the tax
consequences of any distributions.

Allianz Life is taxed as a life insurance company under the Code. For federal
income tax purposes, the Separate Account is not a separate entity from Allianz
Life, and its operations form a part of Allianz Life.

DIVERSIFICATION

Section 817(h) of the Code imposes certain diversification standards on the
underlying assets of variable annuity Contracts. The Code provides that a
variable annuity Contract will not be treated as an annuity Contract for any
period (and any subsequent period) for which the investments are not adequately
diversified in accordance with regulations prescribed by the United States
Treasury Department ("Treasury Department"). Disqualification of the Contract as
an annuity Contract would result in imposition of federal income tax to the
Contract Owner with respect to earnings allocable to the Contract prior to the
receipt of payments under the Contract. The Code contains a safe harbor
provision which provides that annuity Contracts such as the Contracts meet the
diversification requirements if, as of the end of each quarter, the underlying
assets meet the diversification standards for a regulated investment company and
no more than fifty-five percent (55%) of the total assets consist of cash, cash
items, U.S. government securities and securities of other regulated investment
companies.

On March 2, 1989, the Treasury Department issued regulations (Treas. Reg.
1.817-5) which established diversification requirements for the Investment
Options underlying variable Contracts such as the Contracts. The regulations
amplify the diversification requirements for variable Contracts set forth in the
Code and provide an alternative to the safe harbor provision described above.
Under the regulations, an Investment Option will be deemed adequately
diversified if: (1) no more than 55% of the value of the total assets of the
Investment Option is represented by any one investment; (2) no more than 70% of
the value of the total assets of the Investment Option is represented by any two
investments; (3) no more than 80% of the value of the total assets of the
Investment Option is represented by any three investments; and (4) no more than
90% of the value of the total assets of the Investment Option is represented by
any four investments.

The Code provides that for purposes of determining whether or not the
diversification standards imposed on the underlying assets of variable Contracts
by Section 817(h) of the Code have been met, "each United States government
agency or instrumentality shall be treated as a separate issuer."


Allianz Life intends that all Investment  Options  underlying the Contracts will
be managed by the  investment  advisers in such a manner as to comply with these
diversification requirements.


The Treasury Department has indicated that the diversification Regulations do
not provide guidance regarding the circumstances in which Contract Owner control
of the investments of the Separate Account will cause the Contract Owner to be
treated as the owner of the assets of the Separate Account, thereby resulting in
the loss of favorable tax treatment for the Contract. At this time it cannot be
determined whether additional guidance will be provided and what standards may
be contained in such guidance.

The amount of Contract Owner control which may be exercised under the Contract
is different in some respects from the situations addressed in published rulings
issued by the Internal Revenue Service in which it was held that the policy
owner was not the owner of the assets of the separate account. It is unknown
whether these differences, such as the Contract Owner's ability to transfer
among investment choices or the number and type of investment choices available,
would cause the Contract Owner to be considered as the owner of the assets of
the Separate Account resulting in the imposition of federal income tax to the
Contract Owner with respect to earnings allocable to the Contract prior to
receipt of payments under the Contract.

In the event any forthcoming guidance or ruling is considered to set forth a new
position, such guidance or ruling will generally be applied only prospectively.
However, if such ruling or guidance is not considered to set forth a new
position, it may be applied retroactively resulting in the Contract Owner being
retroactively determined to be the owner of the assets of the Separate Account.
Due to the uncertainty in this area, Allianz Life reserves the right to modify
the Contract in an attempt to maintain favorable tax treatment.

MULTIPLE CONTRACTS

The Code provides that multiple non-qualified deferred annuity Contracts which
are issued within a calendar year period to the same Contract owner by one
company or its affiliates are treated as one annuity Contract for purposes of
determining the tax consequences of any distribution. Such treatment may result
in adverse tax consequences, including more rapid taxation of the distributed
amounts from such combination of Contracts. For purposes of this rule, Contracts
received in a Section 1035 exchange will be considered issued in the year of the
exchange. Contract Owners should consult a tax adviser prior to purchasing more
than one non-qualified annuity Contract in any calendar year period.

PARTIAL 1035 EXCHANGES

Section 1035 of the Code provides that an annuity Contract may be exchanged in a
tax-free transaction for another annuity Contract. Historically, it was presumed
that only the exchange of an entire Contract, as opposed to a partial exchange,
would be accorded tax-free status. In 1998 in CONWAY VS. COMMISSIONER, the Tax
Court held that the direct transfer of a portion of an annuity Contract into
another annuity Contract qualified as a non-taxable exchange. On November 22,
1999, the Internal Revenue Service filed an Action on Decision which indicated
that it acquiesced in the Tax Court decision in CONWAY. However, in its
acquiescence with the decision of the Tax Court, the Internal Revenue Service
stated that it will challenge transactions where taxpayers enter into a series
of partial exchanges and annuitizations as part of a design to avoid application
of the 10% premature distribution penalty or other limitations imposed on
annuity Contracts under the Code. In the absence of further guidance from the
Internal Revenue Service it is unclear what specific types of partial exchange
designs and transactions will be challenged by the Internal Revenue Service. Due
to the uncertainty in this area owners should consult their own tax advisers
prior to entering into a partial exchange of an annuity Contract.

CONTRACTS OWNED BY OTHER
THAN NATURAL PERSONS

Under Section 72(u) of the Code, the investment earnings on purchase payments
for the Contracts will be taxed currently to the Contract Owner if the Owner is
a non-natural person, e.g., a corporation or certain other entities. Such
Contracts generally will not be treated as annuities for federal income tax
purposes. However, this treatment is not applied to Contracts held by a trust or
other entity as an agent for a natural person nor to Contracts held by qualified
plans. Purchasers should consult their own tax counsel or other tax adviser
before purchasing a Contract to be owned by a non-natural person.

ASSIGNMENTS, PLEDGES AND GRATUITOUS TRANSFERS

Other than in the case of Qualified Contracts (which generally cannot be
assigned or pledged), any assignment or pledge of (or agreement to assign or
pledge) any portion of the Accumulation Value is treated for federal income tax
purposes as a surrender of such amount or portion. The investment in the
Contract is increased by the amount includible as income with respect to such
amount or portion, though it is not affected by any other aspect of the
assignment or pledge (including its release). If a Contract Owner transfers a
Contract without adequate consideration to a person other than the Contract
Owner's spouse (or to a former spouse incident to divorce), the Contract Owner
will be taxed on the difference between his or her Accumulation Value and the
investment in the Contract at the time of transfer. In such case, the
transferee's investment in the Contract will be increased to reflect the
increase in the transferor's income.

The transfer or assignment of ownership of the Contract, the designation of an
Annuitant, the selection of certain annuity starting dates, or the exchange of
the Contract may result in certain other tax consequences that are not discussed
herein. A Contract Owner contemplating any such transfer, assignment, or
exchange should consult a tax advisor as to the tax consequences.

DEATH BENEFITS

Any death benefits paid under the Contract are taxable to the beneficiary. The
rules governing the taxation of payments from an annuity Contract, as discussed
above, generally apply to the payment of death benefits and depend on whether
the death benefits are paid as a lump sum or as annuity payments. Estate taxes
may also apply.

INCOME TAX WITHHOLDING

All distributions or the portion thereof which is includible in the gross income
of the Contract Owner are subject to federal income tax withholding. Generally,
amounts are withheld from periodic payments at the same rate as wages and at the
rate of 10% from non-periodic payments. However, the Contract Owner, in most
cases, may elect not to have taxes withheld or to have withholding done at a
different rate.

Certain distributions from retirement plans qualified under Section 401 or
Section 403(b) of the Code, which are not directly rolled over to another
eligible retirement plan or individual retirement account or individual
retirement annuity, are subject to a mandatory 20% withholding for federal
income tax. The 20% withholding requirement generally does not apply to: (a) a
series of substantially equal payments made at least annually for the life or
life expectancy of the participant or joint and last survivor expectancy of the
participant and a designated beneficiary, or for a specified period of 10 years
or more; or (b) distributions which are required minimum distributions; or (c)
the portion of the distributions not includible in gross income (i.e. returns of
after-tax contributions); or (d) hardship withdrawals. Participants should
consult their own tax counsel or other tax adviser regarding withholding
requirements.

REQUIRED DISTRIBUTIONS

In order to be treated as an annuity Contract for Federal income tax purposes,
Section 72(s) of the Code requires any Non-Qualified Contract to contain certain
provisions specifying how your interest in the Contract will be distributed in
the event of the death of an owner of the Contract. Specifically, section 72(s)
requires that (a) if any owner dies on or after the annuity starting date, but
prior to the time the entire interest in the Contract has been distributed, the
entire interest in the Contract will be distributed at least as rapidly as under
the method of distribution being used as of the date of such owner's death; and
(b) if any owner dies prior to the annuity starting date, the entire interest in
the Contract will be distributed within five years after the date of such
owner's death. These requirements will be considered satisfied as to any portion
of an owner's interest which is payable to or for the benefit of a designated
beneficiary and which is distributed over the life of such designated
beneficiary or over a period not extending beyond the life expectancy of that
beneficiary, provided that such distributions begin within one year of the
owner's death. The designated beneficiary refers to a natural person designated
by the owner as a beneficiary and to whom ownership of the Contract passes by
reason of death. However, if the designated beneficiary is the surviving spouse
of the deceased owner, the Contract may be continued with the surviving spouse
as the new owner. If the owner of the Contract is a non-natural person, then the
death or change of an annuitant is treated as the death of the owner.

The Non-Qualified Contracts contain provisions that are intended to comply with
these Code requirements, although no regulations interpreting these requirements
have yet been issued. We intend to review such provisions and modify them if
necessary to assure that they comply with the applicable requirements when such
requirements are clarified by regulation or otherwise.

TAX TREATMENT OF WITHDRAWALS -
NON-QUALIFIED CONTRACTS

Section 72 of the Code governs treatment of distributions from annuity
Contracts. It provides that if the Contract value exceeds the aggregate purchase
payments made, any amount surrendered will be treated as coming first from the
earnings and then, only after the income portion is exhausted, as coming from
the principal. Withdrawn earnings are includable in gross income. It further
provides that a ten percent (10%) penalty will apply to the income portion of
any distribution. However, the penalty is not imposed on amounts received: (a)
after the taxpayer reaches age 59 1/2 ; (b) after the death of the Contract
Owner; (c) if the taxpayer is totally disabled (for this purpose disability is
as defined in Section 72(m)(7) of the Code); (d) in a series of substantially
equal periodic payments made not less frequently than annually for the life (or
life expectancy) of the taxpayer or for the joint lives (or joint life
expectancies) of the taxpayer and his beneficiary; (e) under an immediate
annuity; or (f) which are allocable to purchase payments made prior to August
14, 1982.

With respect to (d) above, if the series of substantially equal periodic
payments is modified before the later of your attaining age 59 1/2 or 5 years
from the date of the first periodic payment, then the tax for the year of the
modification is increased by an amount equal to the tax which would have been
imposed (the 10% penalty tax) but for the exception, plus interest for the tax
years in which the exception was used.

The above information does not apply to Qualified Contracts. However, separate
tax withdrawal penalties and restrictions may apply to such Qualified Contracts.
(See "Tax Treatment of Withdrawals"- Qualified Contracts.")

QUALIFIED PLANS

The Contracts offered by the Prospectus are designed to be suitable for use
under various types of Qualified Plans. Because of the minimum Purchase
Payment requirements, these Contracts may not be appropriate for some periodic
payment retirement plans. Taxation of participants in each Qualified Plan varies
with the type of plan and terms and conditions of each specific plan. Contract
Owners, Annuitants and beneficiaries are cautioned that benefits under a
Qualified Plan may be subject to the terms and conditions of the plan regardless
of the terms and conditions of the Contracts issued pursuant to the plan. Some
retirement plans are subject to distribution and other requirements that are not
incorporated into Allianz Life's administrative procedures. Allianz Life is not
bound by the terms and conditions of such plans to the extent such terms
conflict with the terms of a Contract, unless Allianz Life specifically consents
to be bound. Contract Owners, participants and beneficiaries are responsible for
determining that contributions, distributions and other transactions with
respect to the Contracts comply with applicable law.

A Qualified Contract will not provide any necessary or additional tax deferral
if it is used to fund a Qualified Plan that is tax deferred. However, the
Contract has features and benefits other than tax deferral that may make it an
appropriate investment for a Qualified Plan. Following are general descriptions
of the types of Qualified Plans with which the Contracts may be used. Such
descriptions are not exhaustive and are for general informational purposes only.
The tax rules regarding Qualified Plans are very complex and will have differing
applications, depending on individual facts and circumstances. Each purchaser
should obtain competent tax advice prior to purchasing a Contract issued under a
Qualified Plan.

On July 6, 1983, the Supreme Court decided in ARIZONA GOVERNING COMMITTEE V.
NORRIS that optional annuity benefits provided under an employer's deferred
compensation plan could not, under Title VII of the Civil Rights Act of 1964,
vary between men and women. The Contracts sold by Allianz Life in connection
with Qualified Plans will utilize annuity tables which do not differentiate on
the basis of sex. Such annuity tables will also be available for use in
connection with certain non-qualified deferred compensation plans.

Contracts issued pursuant to Qualified Plans include special provisions
restricting Contract provisions that may otherwise be available and described in
this Statement of Additional Information. Generally, Contracts issued pursuant
to Qualified Plans are not transferable except upon surrender or annuitization.
Various penalty and excise taxes may apply to contributions or distributions
made in violation of applicable limitations. Furthermore, certain withdrawal
penalties and restrictions may apply to withdrawals from Qualified Contracts.
(See "Tax Treatment of Withdrawals - Qualified Contracts.")

A. TAX-SHELTERED ANNUITIES

Section 403(b) of the Code permits the purchase of "tax-sheltered annuities" by
public schools and certain charitable, educational and scientific organizations
described in Section 501(c)(3) of the Code. These qualifying employers may make
contributions to the Contracts for the benefit of their employees. Such
contributions are not includible in the gross income of the employee until the
employee receives distributions from the Contract. The amount of contributions
to the tax-sheltered annuity is limited to certain maximums imposed by the Code.
Furthermore, the Code sets forth additional restrictions governing such items as
transferability, distributions, nondiscrimination and withdrawals. (See "Tax
Treatment of Withdrawals - Qualified Contracts" and "Tax-Sheltered Annuities -
Withdrawal Limitations.") Employee loans are not allowed under these Contracts.
Any employee should obtain competent tax advice as to the tax treatment and
suitability of such an investment.

B. INDIVIDUAL RETIREMENT ANNUITIES

Section 408(b) of the Code permits eligible individuals to contribute to an
individual retirement program known as an "Individual Retirement Annuity"
("IRA"). Under applicable limitations, certain amounts may be contributed to an
IRA which may be deductible from the individual's taxable income. These IRAs are
subject to limitations on eligibility, contributions, transferability and
distributions. (See "Tax Treatment of Withdrawals - Qualified Contracts.") Under
certain conditions, distributions from other IRAs and other Qualified Plans may
be rolled over or transferred on a tax-deferred basis into an IRA. Sales of
Contracts for use with IRAs are subject to special requirements imposed by the
Code, including the requirement that certain informational disclosure be given
to persons desiring to establish an IRA. Purchasers of Contracts to be qualified
as Individual Retirement Annuities should obtain competent tax advice as to the
tax treatment and suitability of such an investment.

ROTH IRAS

Section 408A of the Code provides that beginning in 1998, individuals may
purchase a new type of non-deductible IRA, known as a Roth IRA. Purchase
payments for a Roth IRA are limited to a maximum amount each year and are not
deductible from taxable income. Lower maximum limitations apply to individuals
with adjusted gross incomes between $95,000 and $110,000 in the case of single
taxpayers, between $150,000 and $160,000 in the case of married taxpayers filing
joint returns, and between $0 and $10,000 in the case of married taxpayers
filing separately. An overall annual limitation continues to apply to all of a
taxpayer's IRA contributions, including Roth IRA and non-Roth IRAs.

Qualified distributions from Roth IRAs are free from federal income tax. A
qualified distribution requires that an individual has held the Roth IRA for at
least five years and, in addition, that the distribution is made either after
the individual reaches age 59 1/2, on the individual's death or disability, or
as a qualified first-time home purchase, subject to a $10,000 lifetime maximum,
for the individual, a spouse, child, grandchild, or ancestor. Any distribution
which is not a qualified distribution is taxable to the extent of earnings in
the distribution. Distributions are treated as made from contributions first and
therefore no distributions are taxable until distributions exceed the amount of
contributions to the Roth IRA. The 10% penalty tax and the regular IRA
exceptions to the 10% penalty tax apply to taxable distributions from a Roth
IRA.

Amounts may be rolled over from one Roth IRA to another Roth IRA. Furthermore,
an individual may make a rollover contribution from a non-Roth IRA to a Roth
IRA, unless the individual has adjusted gross income over $100,000 or the
individual is a married taxpayer filing a separate return. The individual must
pay tax on any portion of the IRA being rolled over that represents income or a
previously deductible IRA contribution. However, for rollovers in 1998, the
individual may pay that tax ratably over the four taxable year periods beginning
with tax year 1998.

Purchasers of Contracts to be qualified as a Roth IRA should obtain competent
tax advice as to the tax treatment and suitability of such an investment.

C. PENSION AND PROFIT-SHARING PLANS

Sections 401(a) and 401(k) of the Code permit employers, including self-employed
individuals, to establish various types of retirement plans for employees. These
retirement plans may permit the purchase of the Contracts to provide benefits
under the Plan. Contributions to the Plan for the benefit of employees will not
be includible in the gross income of the employee until distributed from the
Plan. The tax consequences to participants may vary, depending upon the
particular Plan design. However, the Code places limitations and restrictions on
all Plans, including on such items as: amount of allowable contributions; form,
manner and timing of distributions; transferability of benefits; vesting and
nonforfeitability of interests; nondiscrimination in eligibility and
participation; and the tax treatment of distributions and withdrawals.
Participant loans are not allowed under the Contracts purchased in connection
with these Plans. (See "Tax Treatment of Withdrawals - Qualified Contracts.")
Purchasers of Contracts for use with Pension or Profit-Sharing Plans should
obtain competent tax advice as to the tax treatment and suitability of such an
investment.

TAX TREATMENT OF WITHDRAWALS -
QUALIFIED CONTRACTS

In the case of a withdrawal under a Qualified Contract, a ratable portion of the
amount received is taxable, generally based on the ratio of the individual's
cost basis to the individual's total accrued benefit under the retirement plan.
Special tax rules may be available for certain distributions from a Qualified
Contract. Section 72(t) of the Code imposes a 10% penalty tax on the taxable
portion of any distribution from qualified retirement plans, including Contracts
issued and qualified under Code Sections 401 (Pension and Profit-Sharing Plans),
403(b) (Tax-Sheltered Annuities) and 408 and 408A (Individual Retirement
Annuities). To the extent amounts are not includible in gross income because
they have been properly rolled over to an IRA or to another eligible Qualified
Plan, no tax penalty will be imposed. The tax penalty will not apply to the
following distributions: (a) if distribution is made on or after the date on
which the Contract Owner or Annuitant (as applicable) reaches age 59 1/2; (b)
distributions following the death or disability of the Contract Owner or
Annuitant (as applicable) (for this purpose disability is as defined in Section
72(m)(7) of the Code); (c) after separation from service, distributions that are
part of substantially equal periodic payments made not less frequently than
annually for the life (or life expectancy) of the Contract Owner or Annuitant
(as applicable) or the joint lives (or joint life expectancies) of such Contract
Owner or Annuitant (as applicable) and his or her designated beneficiary; (d)
distributions to a Contract Owner or Annuitant (as applicable) who has separated
from service after he or she has attained age 55; (e) distributions made to the
Contract Owner or Annuitant (as applicable) to the extent such distributions do
not exceed the amount allowable as a deduction under Code Section 213 to the
Contract Owner or Annuitant (as applicable) for amounts paid during the taxable
year for medical care; (f) distributions made to an alternate payee pursuant to
a qualified domestic relations order; (g) distributions made on account of an
IRS levy upon the Qualified Contract; (h) distributions from an Individual
Retirement Annuity for the purchase of medical insurance (as described in
Section 213(d)(1)(D) of the Code) for the Contract Owner or Annuitant (as
applicable) and his or her spouse and dependents if the Contract Owner or
Annuitant (as applicable) has received unemployment compensation for at least 12
weeks (this exception no longer applies after the Contract Owner or Annuitant
(as applicable) has been re-employed for at least 60 days); (i) distributions
from an Individual Retirement Annuity made to the Owner or Annuitant (as
applicable) to the extent such distributions do not exceed the qualified higher
education expenses (as defined in Section 72(t)(7) of the Code) of the Owner or
Annuitant (as applicable) for the taxable year; and (j) distributions from an
Individual Retirement Annuity made to the Owner or Annuitant (as applicable)
which are qualified first-time home buyer distributions (as defined in Section
72(t)(8) of the Code). The exceptions stated in items (d) and (f) above do not
apply in the case of an Individual Retirement Annuity. The exception stated in
item (c) applies to an Individual Retirement Annuity without the requirement
that there be a separation from service.

With respect to (c) above, if the series of substantially equal periodic
payments is modified before the later of your attaining age 59 1/2 or 5 years
from the date of the first periodic payment, then the tax for the year of the
modification is increased by an amount equal to the tax which would have been
imposed (the 10% penalty tax) but for the exception, plus interest for the tax
years in which the exception was used.

Generally, distributions from a Qualified Plan must commence no later than April
1 of the calendar year following the later of: (a) the year in which the
employee attains age 70 1/2, or (b) the calendar year in which the employee
retires. The date set forth in (b) does not apply to an Individual Retirement
Annuity or to a "5% owner" (as defined in the Code). Required distributions must
be over a period not exceeding the life expectancy of the individual or the
joint lives or life expectancies of the individual and his or her designated
beneficiary. If the required minimum distributions are not made, a 50% penalty
tax is imposed as to the amount not distributed.

Many withdrawals from Qualified Contracts can be rolled over to an IRA or
another qualified retirement plan. If you receive a withdrawal from a Qualified
Contract that could be rolled over and you do not elect to make a direct
rollover of that amount to an IRA or qualified plan, 20% of the taxable amount
must by law be withheld by us for taxes. In situations where this mandatory tax
withholding does not apply, other tax amounts may be withheld unless you elect
out of the withholding. You may request more detailed information about income
tax withholding at the time of a withdrawal.

TAX-SHELTERED ANNUITIES - WITHDRAWAL LIMITATIONS

The Code limits the withdrawal of amounts attributable to contributions made
pursuant to a salary reduction agreement (as defined in Section 403(b)(11) of
the Code) to circumstances only when the Contract Owner: (1) attains age 59 1/2;
(2) separates from service; (3) dies; (4) becomes disabled (within the meaning
of Section 72(m)(7) of the Code); or (5) in the case of hardship. However,
withdrawals for hardship are restricted to the portion of the Contract Owner's
Contract Value which represents contributions by the Contract Owner and does not
include any investment results. The limitations on withdrawals became effective
on January 1, 1989, and apply only to salary reduction contributions made after
December 31, 1988, and to income attributable to such contributions and to
income attributable to amounts held as of December 31, 1988. The limitations on
withdrawals do not affect rollovers and transfers between certain Qualified
Plans. Contract Owners should consult their own tax counsel or other tax adviser
regarding any distributions.

Although the likelihood of legislative changes is uncertain, there is always the
possibility that the tax treatment of the Contract could change by legislation
or otherwise. Consult a tax adviser with respect to legislative developments and
their effect on the Contract.

We have the right to modify the Contract in response to legislative changes that
could otherwise diminish the favorable tax treatment that annuity Contract
Owners currently receive. We make no guarantee regarding the tax status of any
Contract and do not intend the above discussion as tax advice.

ANNUITY PROVISIONS
--------------------------------------------------------------------------------

FIXED ANNUITY PAYOUT

A fixed annuity is an annuity with payments which are guaranteed as to dollar
amount by Allianz Life and do not vary with the investment experience of an
Investment Option. The Fixed Account value on the day immediately preceding the
Income Date will be used to determine the Fixed Annuity monthly payment. The
monthly Annuity Payment will be based upon the Contract Value at the time of
annuitization, the Annuity Option selected, the age of the Annuitant and any
joint Annuitant and the sex of the Annuitant and joint Annuitant where allowed.

VARIABLE ANNUITY PAYOUT

A variable annuity is an annuity with payments which: (1) are not predetermined
as to dollar amount; and (2) will vary in amount with the net investment results
of the applicable Investment Option(s).

ANNUITY UNIT VALUE

On the Income Date, a fixed number of Annuity Units will be purchased as
follows:

The first Annuity Payment is equal to the Adjusted Contract Value, divided first
by $1,000 and then multiplied by the appropriate Annuity Payment amount for each
$1,000 of value for the Annuity Option selected. In each subaccount the fixed
number of Annuity Units is determined by dividing the amount of the initial
Annuity Payment determined for each subaccount by the Annuity Unit value on the
Income Date. Thereafter, the number of Annuity Units in each subaccount remains
unchanged unless the Contract Owner elects to transfer between Investment
Options. All calculations will appropriately reflect the Annuity Payment
frequency selected.

On each subsequent Annuity Payment date, the total Annuity Payment is the sum of
the Annuity Payments for each subaccount. The Annuity Payment in each subaccount
is determined by multiplying the number of Annuity Units then allocated to such
subaccount by the Annuity Unit value for that subaccount.

On each subsequent Valuation Date, the value of an Annuity Unit is determined in
the following way:

First:  The Net  Investment  Factor is determined as described in the Prospectus
under "Purchase - Accumulation Units."

Second: The value of an Annuity Unit for a Valuation Period is equal to:

a. the value of the Annuity Unit for the immediately preceding Valuation Period.

b. multiplied by the Net Investment Factor for the current Valuation Period;

c. divided by the Assumed Net Investment Factor (see below) for the Valuation
Period.

The Assumed Net Investment Factor is equal to one plus the Assumed Investment
Return which is used in determining the basis for the purchase of an Annuity,
adjusted to reflect the particular Valuation Period. The Assumed Investment
Return that Allianz Life will use is 5%. However, Allianz Life may agree to use
a different value.

MORTALITY AND EXPENSE RISK GUARANTEE
--------------------------------------------------------------------------------


Allianz Life guarantees that the dollar amount of each Annuity Payment after the
first Annuity Payment will not be affected by variations in mortality and
expense experience.

FINANCIAL STATEMENTS
--------------------------------------------------------------------------------



The audited consolidated financial statements of Allianz Life as of and for the
year ended December 31, _____, included herein should be considered only as
bearing upon the ability of Allianz Life to meet its obligations under the
Contracts. The audited financial statements of the Separate Account as of and
for the year ended December 31, _____, are also included herein.




<PAGE>



                                                                            A-1

APPENDIX A - ILLUSTRATIONS
--------------------------------------------------------------------------------

                        IMPORTANT DISCLOSURES
         HYPOTHETICAL VARIABLE AND/OR FIXED PAYOUT ILLUSTRATION

This illustration depicts how a payment option may work when you annuitize your
Contract. THIS ILLUSTRATION IS NOT A CONTRACT, AND IT IS NOT A REPRESENTATION OR
GUARANTEE OF FUTURE RETURNS OR OF ANY SPECIFIC PAYOUT AMOUNT.

 If you want to receive regular income from your annuity, you can choose an
 Annuity Option at any time after the 2nd Contract anniversary. You may elect to
 receive your Annuity Payments as a variable payout, a fixed payout, or a
 combination of both. If you choose to have any part of your payments come from
 the Variable Investment Options, the dollar amount of your payments may go up
 or down based on the performance of the Investment Options.

The Contract provides that the Contract cannot be annuitized prior to 2 years
after the Contract issue date. For this reason, illustrations that you receive
will be based upon an Income Date that is at least 2 years after the issue date.


You can elect to have illustrated either a "variable" payout option or a "fixed"
payout option, or, you may elect to receive both a variable payout illustration
and a fixed payout illustration. THE "VARIABLE" PAYOUT OPTION ILLUSTRATION is
based upon actual historical performance of one or more Investment Options over
the specified period, as adjusted for all applicable Investment Option expenses
and applicable Contract expenses. The principal purpose of the variable payout
illustration is to demonstrate how the performance of the underlying Investment
Options could affect Contract values and payout amounts when the Contract is
annuitized. Past performance is not a guarantee of future results. Investment
returns and principal value will fluctuate with market conditions so that units,
when redeemed may be with more or less than the original cost.


The illustration has not been adjusted for state or federal income tax
liability, 10% federal penalty tax for withdrawals prior to age 59 1/2, or any
applicable state premium taxes; values would be lower if such adjustments had
been made.


 This illustration may illustrate adjusted historical performance for one or
 more Investment Options. If more than one Investment Option is illustrated,
 performance may be shown as aggregate performance for all Investment Options
 selected. In addition, if you elect to illustrate more than one Investment
 Option and to hypothetically allocate more money to one option than to other
 Investment Options (for example, 50% to one Investment Option, 30% to a second
 Investment Option, and 20% to a third Investment Option), performance may be
 shown as weighted aggregate performance.


THE "FIXED" PAYOUT OPTION ILLUSTRATION is not based upon any sort of historical
performance, but rather is based upon fixed payout factors that are in effect on
the date of the illustration. These factors can change, up until the date you
annuitize your Contract.

 VARIABLE PAYOUT ANNUITY- Variable Annuity payouts depend on a variety of
 factors, including the amount annuitized, annuity payout option selected,
 assumed investment rate (AIR), and will vary with the performance of the
 Investment Option(s) selected. The variable income can increase or decrease
 from the initial monthly payment and no minimum dollar amount of variable
 income is guaranteed. Actual performance results may be more or less than those
 reflected in the hypothetical rates of return.







--------------------------------------------------------------------------------
This is a hypothetical variable annuity illustration, not a Contract, and is not
complete without all pages. The illustration can only be used when accompanied
or preceded by the Contract prospectus for the Valuemark(R)IV, a flexible
premium variable annuity. The prospectus contains more information, including
fees, expenses and risk factors, and should be read carefully before sending
money. All product guarantees are based on the claims paying ability of Allianz
Life Insurance Company of North America. Variable annuities are: not insured by
the FDIC or any other governmental agency; not deposits or obligations of, or
guarantees by, any bank or deposit or institution; and subject to investment
risks, including the possible loss of principal.
USAllianz products are issued by Allianz Life Insurance Company of North America
and distributed by its affiliate, USAllianz Investor Services, LLC, 5701 Golden
Hills Drive, Minneapolis, MN 55416-1297. Member NASD.
                                   Page x of y
 Date                                                                   L30570


<PAGE>


                                                                            A-2


The AIR was selected by your registered representative. The 3% AIR payments
start at a lower level than the 5% or 7% AIR, with the potential for more rapid
increase in payments during later years. Conversely if a 7% AIR is chosen there
is a potential for a more rapid decrease in payments during the later years. The
7% AIR is not available in the states of Oregon, Texas and New Jersey.

 The value of a variable annuity will fluctuate, based on the performance of the
 underlying Investment Options, and the Contract owner may experience a gain or
 loss. Actual performance results may be more or less than those shown on this
 illustration.

 STANDARDIZED AVERAGE ANNUAL RETURN: Any adjusted historical performance
 illustration is accompanied by Standardized Average Annual Return for each
 Investment Option depicted in the illustration. Standardized return is
 calculated using uniform guidelines as mandated by the Securities and Exchange
 Commission. Standardized return figures assume a one-time lump sum purchase
 amount, and do not reflect the effect of taxation. Standardized return is shown
 for the most recent 1, 5, and 10 year periods, or from the inception date of
 the Investment Option, if later. In contrast, illustration material may depict
 returns from the inception date of the applicable portfolio, if earlier than
 the inception date of the Investment Option. Standardized return includes the
 effect of all portfolio expenses and all Contract expenses. If Contract
 expenses vary depending upon which features are selected, standardized return
 will reflect the highest potential expenses. In contrast, an illustration may
 reflect only certain expenses. Standardized return also assumes the assessment
 of a CDSC at the end of each applicable period. Standardized return is computed
 as of the most recent calendar quarter.

 FIXED PAYOUT ANNUITY- Fixed payments will depend on a variety of factors,
 including the amount annuitized, payout factor rates when the Contract is
 annuitized, date of birth, and annuity payout option selected. Fixed Annuity
 payouts, once commenced, will not vary.

COSTS AND EXPENSES: The Contract has insurance features and investment features,
and there are costs related to each. Each year, Allianz Life deducts a $30
Contract maintenance charge from your Contract. Allianz Life currently waives
this charge if your Contract value is at least $50,000.


 Allianz Life deducts a mortality and expense risk charge which varies depending
 upon your selection of the Guaranteed Minimum Income Benefit and the Guaranteed
 Minimum Death Benefit (GMDB) options. Allianz Life also deducts an
 administration charge. This charge, together with the Contract maintenance
 charge, is for all the expenses associated with the administration of the
 Contract. The table below shows the benefit combinations available to you and
 their Separate Account expenses during the Accumulation Phase, as a percentage
 of the average daily value of the Contract value allocated to the Variable
 Investment Options.



<TABLE>
<CAPTION>

                                                CHARGES FOR CONTRACT WITH              CHARGES FOR CONTRACT WITH
                                                         NO GMIB                            TRADITIONAL GMIB
                                                M&E      Admin.     Total                M&E     Admin.    Total
                                               CHARGE    CHARGE    CHARGE              CHARGE    CHARGE   CHARGE
<S>                                             <C>       <C>       <C>                 <C>      <C>       <C>
Traditional Guaranteed Minimum Death Benefit    1.60%     0.15%     1.75%               1.75%    0.15%     1.90%
Earnings Protection
      Guaranteed Minimum Death Benefit          1.90%     0.15%     2.05%               2.05%    0.15%     2.20%
Enhanced Guaranteed Minimum Death Benefit       1.90%     0.15%     2.05%               2.00%    0.15%     2.15%
</TABLE>



-------------------------------------------------------------------------------
This is a hypothetical variable annuity illustration, not a Contract, and is not
complete without all pages. The illustration can only be used when accompanied
or preceded by the Contract prospectus for the Valuemark (R)IV, a flexible
premium variable annuity. The prospectus contains more information, including
fees, expenses and risk factors, and should be read carefully before sending
money. All product guarantees are based on the claims paying ability of Allianz
Life Insurance Company of North America. Variable annuities are: not insured by
the FDIC or any other governmental agency; not deposits or obligations of, or
guarantees by, any bank or deposit or institution; and subject to investment
risks, including the possible loss of principal.
USAllianz products are issued by Allianz Life Insurance Company of North America
and distributed by its affiliate, USAllianz Investor Services, LLC, 5701 Golden
Hills Drive, Minneapolis, MN 55416-1297. Member NASD.
                                   Page x of y
Date                                                                    L30570


<PAGE>

                                                                           A-3

The selection of the GMIB and the GMDB must be made at the time of initial
Purchase Payment. Once selected, they cannot be changed.

The GMIB guarantees that your Annuity Payments will be equal to the guaranteed
fixed payout rates applied to the GMIB value. We will use current fixed payout
rates applied to the Contract Value adjusted for any applicable MVA (less any
applicable premium tax) to calculate your Annuity Payments if that produces a
greater payment. However, if we do not use the GMIB value to calculate your
Annuity Payments you will incur higher Contract expenses without receiving any
explicit benefit from the GMIB option.

The GMIB is subject to a 7-year waiting period and your Contract must be
annuitized under one of the fixed Annuity Options 1-5. If you do not hold your
Contract for seven years before the Income Date, you cannot take advantage of
the GMIB benefit.

You can always annuitize your Contract Value (adjusted for any applicable MVA
less any applicable premium tax) two years or more after the Issue Date under a
fixed and/or variable Annuity Option. Some states may require a shorter period
of time.

The Traditional GMIB Value is equal to the total Purchase Payments adjusted for
partial withdrawals.

The Traditional GMDB guarantees the greater of the following, less any
applicable premium tax:
     Contract Value or
     total Purchase Payments.

The Enhanced GMDB guarantees the greater of the following, less any applicable
premium tax:
 oContract Value or
 oThe Enhanced Guaranteed Minimum Death Benefit which is equal to the greater
  of:
           ototal Purchase Payments adjusted for partial withdrawals increased
            by 3% on each Contract Anniversary prior to age 81 (maximum of 150%
             of purchase payments adjusted for partial withdrawals); or

           othe maximum Contract Value on any Contract Anniversary plus
              subsequent additional Purchase Payments and minus subsequent
              adjusted partial withdrawals prior to age 81.

The EP GMDB guarantees the greater of 1, 2 or 3, less any applicable premium
tax:
1)   Contract Value ;
2)   total Purchase Payments less adjusted partial withdrawals;
3)   Contract Value PLUS

oIf you are 69 or younger on the Issue Date, 50% of the lesser of (a) or (b),
or
oIf you are 70 or older on the Issue Date, 35% of the lesser of (a) or
(b).
     (a) Is the Contract Value minus total Purchase Payments.
     (b) Is three times the total Purchase Payments made in the first two
         Contract years.



-------------------------------------------------------------------------------
This is a hypothetical variable annuity illustration, not a Contract, and is not
complete without all pages. The illustration can only be used when accompanied
or preceded by the Contract prospectus for the Valuemark (R)IV, a flexible
premium variable annuity. The prospectus contains more information, including
fees, expenses and risk factors, and should be read carefully before sending
money. All product guarantees are based on the claims paying ability of Allianz
Life Insurance Company of North America. Variable annuities are: not insured by
the FDIC or any other governmental agency; not deposits or obligations of, or
guarantees by, any bank or deposit or institution; and subject to investment
risks, including the possible loss of principal.
USAllianz products are issued by Allianz Life Insurance Company of North America
and distributed by its affiliate, USAllianz Investor Services, LLC, 5701 Golden
Hills Drive, Minneapolis, MN 55416-1297. Member NASD.
                                   Page x of y
Date                                                                     L30570


<PAGE>


                                                                            A-4

If you take money out of the Contract, Allianz Life may assess a Contingent
Deferred Sales Charge (CDSC). The CDSC starts at 6% in the first year and
declines to 0% after we have had a Purchase Payment for 7 complete years. A
different charge applies to liquidations from the Period Certain Only annuity
option during the payout phase called a commutation fee.

There are also daily investment charges which currently range, on an annual
basis, from ____% to ____% of the average daily value of the Investment Option,
depending upon the Investment Option.

This illustration reflects the costs of all optional features you have selected.
It does not reflect costs associated with features you have not selected. If you
choose to add optional features, it will increase costs and reduce returns. Some
optional features must be selected at the issue date, and cannot be added once
the Contract is issued.

The "CONTRACT VALUE" for any point in time is an amount equal to the sum of each
Accumulation Unit Value multiplied by the number of Units allocated to the
Contract for each Investment Option. This value will fluctuate due to the
performance of the selected Investment Options. The Contract Value reflects all
Contract charges, and Investment Option expenses for the Contract features
selected but does not reflect the CDSC. It does not reflect the impact of
premium taxes, income taxes or the 10% federal penalty tax for withdrawals prior
to age 59 1/2.

The "CASH SURRENDER VALUE" reflects all of the expenses and charges assessed
against "Contract value", and also reflects any CDSC if applicable. It does not
reflect the impact of premium taxes, income taxes or the 10% federal penalty tax
for withdrawals prior to age 59 1/2.

IMPORTANT CONSIDERATIONS: Past performance is not a guarantee of future results.
Investment returns and principal value will fluctuate with market conditions so
that units, when redeemed may be worth more or less than the original cost.

Product and features may not be available in all states. All product guarantees
are based on the claims paying ability of Allianz Life Insurance Company of
North America.

High yield securities inherently have a high degree of market risk in addition
to credit risk and potential illiquidity.

Index Investment Options seek to match the performance of specified market
indexes. Investors cannot invest directly into indexes.

Money invested in a specific sector or industry is subject to a higher degree of
risk than money that is diversified.

Small cap stocks may be more volatile than large cap or more established
companies' securities.

International investing involves some risks not presented with U.S. investments,
such as currency fluctuation and political volatility.

An investment in the Money Market fund is neither insured nor guaranteed by the
FDIC or any other governmental agency. Although the fund seeks to preserve your
$1.00 per share, it is possible to lose money in the fund.










-------------------------------------------------------------------------------
This is a hypothetical variable annuity illustration, not a Contract, and is not
complete without all pages. The illustration can only be used when accompanied
or preceded by the Contract prospectus for the Valuemark (R)IV, a flexible
premium variable annuity. The prospectus contains more information, including
fees, expenses and risk factors, and should be read carefully before sending
money. All product guarantees are based on the claims paying ability of Allianz
Life Insurance Company of North America. Variable annuities are: not insured by
the FDIC or any other governmental agency; not deposits or obligations of, or
guarantees by, any bank or deposit or institution; and subject to investment
risks, including the possible loss of principal.
USAllianz products are issued by Allianz Life Insurance Company of North America
and distributed by its affiliate, USAllianz Investor Services, LLC, 5701 Golden
Hills Drive, Minneapolis, MN 55416-1297. Member NASD.
                                   Page x of y
Date                                                                     L30570


<PAGE>


                                                                            A-5

                            USALLIANZ VALUEMARK(R) IV
<TABLE>
<CAPTION>

PREPARED FOR                                         CONTRACT INFORMATION FOR FEATURES SELECTED
John Doe
                                                     Contract Type: Non-Qualified
                                                     Guaranteed Minimum Income Benefit (GMIB):
                                                     Guaranteed Minimum Death Benefit (GMDB:

                                                     HYPOTHETICAL FIXED PAYOUT ANNUITIZATION



Annuitization Age: 65, Male                                                                Annuity Value:            520,097.92
Federal Tax Rate:
Annuitization Date:                                                                           Cost Basis:            500,000.00

                                       Monthly                           Exclusion                Taxable
                                       PAYOUT                            AMOUNT                  AMOUNT
                                      <S>                               <C>                                     <C>
                                       xxxx.xx                          xxxxx.xx                                xxxxx.xx

This hypothetical illustration is based upon payout factor rates currently in
effect. These are subject to change, and may be higher or lower when you
annuitize your Contract.

This illustration is for illustrative purposes only and is no guarantee of
return of future performance.

</TABLE>


















-------------------------------------------------------------------------------
This is a hypothetical variable annuity illustration, not a Contract, and is not
complete without all pages. The illustration can only be used when accompanied
or preceded by the Contract prospectus for the Valuemark (R)IV, a flexible
premium variable annuity. The prospectus contains more information, including
fees, expenses and risk factors, and should be read carefully before sending
money. All product guarantees are based on the claims paying ability of Allianz
Life Insurance Company of North America. Variable annuities are: not insured by
the FDIC or any other governmental agency; not deposits or obligations of, or
guarantees by, any bank or deposit or institution; and subject to investment
risks, including the possible loss of principal.
USAllianz products are issued by Allianz Life Insurance Company of North America
and distributed by its affiliate, USAllianz Investor Services, LLC, 5701 Golden
Hills Drive, Minneapolis, MN 55416-1297. Member NASD.
                                   Page x of y
Date                                                                     L30570



<PAGE>


                                                                            A-6

                              IMPORTANT DISCLOSURES
                 HYPOTHETICAL FIXED RATE OF RETURN ILLUSTRATION

THIS IS AN ILLUSTRATION NOT A CONTRACT. The purpose of this illustration is to
demonstrate how a varying rate of return may affect Contract values, death
benefits, and income benefits over an extended period of time. This illustration
is based upon hypothetical fixed returns during the period indicated. This
illustration is for illustrative purposed only and is no guarantee of return or
future performance. It illustrates how much the Contract would hypothetically be
worth, and how much the guaranteed death benefit and guaranteed income benefit
would be, based on the hypothetical rate of return illustrated. No
representations are made that these hypothetical rates of return can be achieved
for any one year or sustained over any period of time.

The value of a variable annuity will fluctuate, based on the performance of the
underlying Investment Options, and the Contract Owner may experience a gain or
loss. Actual performance results may be more or less than those reflected in the
hypothetical rates of return and will depend on a number of factors, including
the choice and investment experience of the variable Investment Options.

This illustration, including any accompanying reports and graphs, must be
preceded or accompanied by the current prospectus. For complete information
about USAllianz Valuemark IV, a flexible premium variable annuity, including
fees and expenses, refer to the prospectus from USAllianz Investor Services,
LLC. Read it carefully before sending money.

TAXES: The effects of income, penalty and state premium taxes have not been
reflected in the illustration. While withdrawals may or may not be depicted
within this illustration, withdrawals from the Contract will be subject to
ordinary income tax to the extent that the Contract value immediately before the
withdrawal exceeds the total amount of after-tax money paid into the Contract. A
withdrawal in excess of the taxable amount will constitute a nontaxable return
of principal. Withdrawals may be subject to a surrender charge, included in
taxable income, and prior to age 59 1/2 may be subject to a 10% federal tax
penalty.

For any tax-qualified account, e.g., IRA or TSA, the tax deferred growth feature
is already provided by the tax qualified retirement plan. Therefore, product
features and benefits other than tax deferral should be reasons for acquiring an
annuity in a qualified retirement plan. If the Contract is an individual
retirement annuity or other qualified Contract, the Contract Owner will
generally be taxed on all amounts withdrawn, or received on withdrawal. The tax
consequences will be different, however, if the Contract is a Roth IRA, or a
traditional non-deductible IRA.

The tax treatment of death benefit proceeds of an annuity Contract differs from
the tax treatment of a life insurance policy. This section is designed to
provide information on the subjects covered. It is not, however, intended to
provide specific legal, tax or other professional advice. For complete details,
consult with your tax advisor or attorney and refer to the prospectus.

COSTS AND EXPENSES: The Contract has insurance features and investment features,
and there are costs related to each.

Each year, Allianz Life deducts a $30 Contract maintenance charge from your
Contract. Allianz Life currently waives this charge if your Contract value is at
least $50,000.


Allianz Life deducts a mortality and expense risk charge which varies depending
upon your selection of the Guaranteed Minimum Income Benefit and the Guaranteed
Minimum Death Benefit (GMDB) options . Allianz Life also deducts an
administration charge. This charge, together with the Contract maintenance
charge, is for all the expenses associated with the administration of the
Contract. The table below shows the combinations available to you and their
Separate Account expenses during the Accumulation Phase, as a percentage of the
average daily value of the Contract value allocated to the Variable Investment
Options.



-------------------------------------------------------------------------------
This is a hypothetical variable annuity illustration, not a Contract, and is not
complete without all pages. The illustration can only be used when accompanied
or preceded by the Contract prospectus for the Valuemark(R) IV, a flexible
premium variable annuity. The prospectus contains more information, including
fees, expenses, and risk factors, and should be read carefully before sending
money. All product guarantees are based on the claims paying ability of Allianz
Life Insurance Company of North America. Variable annuities are: not insured by
the FDIC or any other governmental agency; not deposits or obligations of, or
guarantees by, any bank or deposit or institution; and subject to investment
risks, including the possible loss of principal.
USAllianz products are issued by Allianz Life Insurance Company of North America
and distributed by its affiliate, USAllianz Investor Services, LLC, 5701 Golden
Hills Drive, Minneapolis, MN 55416-1297. Member NASD.
                                   Page x of y
Date                                                                    L30570


<PAGE>


<TABLE>
<CAPTION>
                                                                            A-7
                                                CHARGES FOR CONTRACT WITH              CHARGES FOR CONTRACT WITH
                                                         NO GMIB                            TRADITIONAL GMIB
                                                M&E      Admin.     Total                M&E     Admin.    Total
                                               CHARGE    CHARGE    CHARGE              CHARGE    CHARGE   CHARGE
<S>                                             <C>       <C>       <C>                 <C>      <C>       <C>
Traditional Guaranteed Minimum Death Benefit    1.60%     0.15%     1.75%               1.75%    0.15%     1.90%
Earnings Protection
      Guaranteed Minimum Death Benefit          1.90%     0.15%     2.05%               2.05%    0.15%     2.20%
Enhanced Guaranteed Minimum Death Benefit       1.90%     0.15%     2.05%               2.00%    0.15%     2.15%
</TABLE>

The selection of the GMIB and GMDB must be made at the time of initial Purchase
Payment. Once selected, they cannot be changed.

The GMIB guarantees that your Annuity Payments will be equal to the guaranteed
fixed payout rates applied to the GMIB value. We will use current fixed payout
rates applied to the Contract Value adjusted for any applicable MVA (less any
applicable premium tax) to calculate your Annuity Payments if that produces a
greater payment. However, if we do not use the GMIB value to calculate your
Annuity Payments you will incur higher Contract expenses without receiving any
explicit benefit from the GMIB option.

The GMIB is subject to a 7-year waiting period and your Contract must be
annuitized under one of the fixed Annuity Options 1-5. If you do not hold your
Contract for seven years before the Income Date, you cannot take advantage of
the GMIB benefit.

You can always annuitize your Contract Value (adjusted for any applicable MVA
less any applicable premium tax) two years or more after the Issue Date under a
fixed and/or variable Annuity Option. Some states may require a shorter period
of time.

The Traditional GMIB Value is equal to the total Purchase Payments adjusted for
partial withdrawals:

The Traditional GMDB guarantees the greater of the following, less any
applicable premium tax:
     oContract Value or
     ototal Purchase Payments adjusted for partial withdrawals.

The Enhanced GMDB guarantees the greater of the following, less any applicable
premium tax:
o Contract Value or
o The Enhanced Guaranteed Minimum Death Benefit which is equal to the greater
  of:
        o  total Purchase Payments adjusted for partial withdrawals increased
           by 3% on each Contract Anniversary prior to age 81 (maximum of 150%
           of purchase payments adjusted for partial withdrawals); or

        o  the maximum Contract Value on any Contract Anniversary plus
           subsequent additional Purchase Payments and minus subsequent
           adjusted partial withdrawals prior to age 81.

The EP GMDB guarantees the greater of 1, 2 or 3, less any applicable premium
tax:
1)   Contract Value;
2)   total Purchase Payments less adjusted partial withdrawals;
3)   Contract Value PLUS
     o If you are 69 or younger on the Issue Date, 50% of the lesser of (a) or
       (b),or
     o If you are 70 or older on the Issue Date, 35% of the lesser of (a) or (b)
     (a) Is the Contract Value minus total Purchase Payments.
     (b) Is three times the total Purchase Payments made in the first two
         Contract years.

--------------------------------------------------------------------------------
This is a hypothetical variable annuity illustration, not a Contract, and is not
complete without all pages. The illustration can only be used when accompanied
or preceded by the Contract prospectus for the Valuemark(R) IV, a flexible
premium variable annuity. The prospectus contains more information, including
fees, expenses and risk factors, and should be read carefully before sending
money. All product guarantees are based on the claims paying ability of Allianz
Life Insurance Company of North America. Variable annuities are: not insured by
the FDIC or any other governmental agency; not deposits or obligations of, or
guarantees by, any bank or deposit or institution; and subject to investment
risks, including the possible loss of principal.
USAllianz products are issued by Allianz Life Insurance Company of North America
and distributed by its affiliate, USAllianz Investor Services, LLC, 5701 Golden
Hills Drive, Minneapolis, MN 55416-1297. Member NASD.

                                   Page x of y
 Date                                                                    L30570

<PAGE>


                                                                            A-8
If you take money out of the Contract, Allianz Life may assess a Contingent
Deferred Sales Charge (CDSC). The CDSC starts at 6% in the first year and
declines to 0% after we have had Purchase Payments for 7 complete years. A
different charge applies to liquidations from the Period Certain Only annuity
option during the payout phase called a commutation fee.

There are also daily investment charges which currently range, on an annual
basis, from ____% to ____% of the average daily value of the Investment Option,
depending upon the Investment Option.

This illustration reflects the costs of all optional features you have selected.
It does not reflect costs associated with features you have not selected. If you
choose to add optional features, it will increase costs and reduce returns. Some
optional features must be selected at the issue date, and cannot be added once
the Contract is issued.

The "CONTRACT VALUE" for any point in time is an amount equal to the sum of each
Accumulation Unit Value multiplied by the number of Units allocated to the
Contract for each Investment Option. This value will fluctuate due to the
performance of the selected Investment Options. The Contract Value reflects all
Contract charges, and Investment Option expenses for the Contract features
selected but does not reflect the CDSC. It does not reflect the impact of
premium taxes, income taxes or the 10% federal penalty tax for withdrawals prior
to age 59 1/2.

The "CASH SURRENDER VALUE" reflects all of the expenses and charges assessed
against "Contract value", and also reflects any CDSC if applicable. It does not
reflect the impact of premium taxes, income taxes or the 10% federal penalty tax
for withdrawals prior to age 59 1/2.

IMPORTANT CONSIDERATIONS: Past performance is not a guarantee of future results.
Investment returns and principal value will fluctuate with market conditions so
that units, when redeemed may be worth more or less than the original cost.

Product and features may not be available in all states. All product guarantees
are based on the claims paying ability of Allianz Life Insurance Company of
North America.

High yield securities inherently have a high degree of market risk in addition
to credit risk and potential illiquidity.

Index Investment Options seek to match the performance of specified market
indexes. Investors cannot invest directly into indexes.

Money invested in a specific sector or industry is subject to a higher degree of
risk than money that is diversified.

Small cap stocks may be more volatile than large cap or more established
companies' securities.

International investing involves some risks not presented with U.S. investments,
such as currency fluctuation and political volatility.

An investment in the Money Market fund is neither insured nor guaranteed by the
FDIC or any other governmental agency. Although the fund seeks to preserve your
$1.00 per share, it is possible to lose money in the fund.

-------------------------------------------------------------------------------











This is a hypothetical variable annuity illustration, not a Contract, and is not
complete without all pages. The illustration can only be used when accompanied
or preceded by the Contract prospectus for the Valuemark(R) IV, a flexible
premium variable annuity. The prospectus contains more information, including
fees, expenses and risk factors, and should be read carefully before sending
money. All product guarantees are based on the claims paying ability of Allianz
Life Insurance Company of North America. Variable annuities are: not insured by
the FDIC or any other governmental agency; not deposits or obligations of, or
guarantees by, any bank or deposit or institution; and subject to investment
risks, including the possible loss of principal.
USAllianz products are issued by Allianz Life Insurance Company of North America
and distributed by its affiliate, USAllianz Investor Services, LLC, 5701 Golden
Hills Drive, Minneapolis, MN 55416-1297. Member NASD.
                                   Page x of y
Date                                                                     L30570


<PAGE>


                                                                            A-9
                            USALLIANZ VAULEMARK(R) IV

<TABLE>
<CAPTION>

PREPARED FOR                                         CONTRACT INFORMATION FOR FEATURES SELECTED
John Doe                                             Contract Type:                     Non-Qualified

                                                     Guaranteed Minimum Income Benefit (GMIB):
PERIOD BEGINNING:
                                                     Guaranteed Minimum Death Benefit (GMDB):


                     HYPOTHETICAL FIXED RETURN ILLUSTRATION
                           GROSS RATE OF RETURN X.XX%

    ------------ -------- -------------------- --------------- -------------- ---------------- ------------- ------------ --------

    END OF YEAR    AGE    HYPOTHETICAL GROSS      PURCHASE      WITHDRAWALS   CONTRACT VALUE       CASH         GMIB       GMDB
                            RATE OF RETURN        PAYMENTS                                      SURRENDER
                          -------------------                                                     VALUE

                          (NOT TO EXCEED 12%)
    ------------ -------- -------------------- --------------- -------------- ---------------- ------------- ------------ --------

         <S>      <C>          <C>               <C>            <C>              <C>             <C>          <C>
         1         45           xx.xx%           $x,xxx.00       ($xxx.00)      $x,xxxx.00      $x,xxxx.00    $x,xxx.00


    ------------ -------- -------------------- --------------- -------------- ---------------- ------------- ------------ --------
</TABLE>
This hypothetical is based on the selected gross rate of return and calculates
the change in Contract value from the beginning period to the ending period,
adjusted for subsequent purchase payments and any withdrawals. Hypothetical
gross rate of return does not include any expenses and charges. However, all
values reflect the Contract maintenance charge, net rate of return, which takes
into consideration the applicable M&E charge, administration charge and average
Investment Option fee of .XXXX%.

This illustration is not intended to serve as a projection or prediction of
future returns.

An illustration showing a hypothetical 0% gross rate of return is contained on
the following page.





















-------------------------------------------------------------------------------
This is a hypothetical variable annuity illustration, not a Contract, and is not
complete without all pages. The illustration can only be used when accompanied
or preceded by the Contract prospectus for the Valuemark(R) IV, a flexible
premium variable annuity. The prospectus contains more information, including
fees, expenses and risk factors, and should be read carefully before sending
money. All product guarantees are based on the claims paying ability of Allianz
Life Insurance Company of North America. Variable annuities are: not insured by
the FDIC or any other governmental agency; not deposits or obligations of, or
guarantees by, any bank or deposit or institution; and subject to investment
risks, including the possible loss of principal.
USAllianz products are issued by Allianz Life Insurance Company of North America
and distributed by its affiliate, USAllianz Investor Services, LLC, 5701 Golden
Hills Drive, Minneapolis, MN 55416-1297. Member NASD.
                                   Page x of y
Date                                                                  L30570


<PAGE>



                                                                           A-10
                            USALLIANZ VALUEMARK(R) IV
<TABLE>
<CAPTION>

PREPARED FOR                                         CONTRACT INFORMATION FOR FEATURES SELECTED
John Doe                                             Contract Type:    Non-Qualified

                                                     Guaranteed Minimum Income Benefit (GMIB):
PERIOD BEGINNING:
                                                     Guaranteed Minimum Death Benefit (GMDB):

                 HYPOTHETICAL FIXED RATE OF RETURN ILLUSTRATION
                           GROSS RATE OF RETURN 0.00%

------------ ------ ------------------ -------------- ---------------- -------------- --------------- ------------- --------------

               AGE     HYPOTHETICAL       PURCHASE       WITHDRAWALS      CONTRACT          CASH           GMIB          GMDB
END OF YEAR           GROSS RATE OF      PAYMENTS                          VALUE        SURRENDER
                         RETURN                                                           VALUE

------------ ------ ------------------ -------------- ---------------- -------------- --------------- ------------- --------------

    <S>      <C>         <C>             <C>             <C>            <C>             <C>           <C>            <C>
     1        45         xx.xx%          $x,xxx.00       ($xxx.00)      $x,xxxx.00      $x,xxxx.00     $x,xxx.00      $x,xxx.00


------------ ------ ------------------ -------------- ---------------- -------------- --------------- ------------- --------------
</TABLE>
This hypothetical is based on the selected gross rate of return and calculates
the change in Contract value from the beginning period to the ending period,
adjusted for subsequent purchase payments and any withdrawals. Hypothetical
gross rate of return does not include any expenses and charges. However, all
values reflect the Contract maintenance charge, net rate of return, which takes
into consideration the applicable M & E charge, administration charge and
average Investment Option fee of .XXXX%.

 [This page must accompany any fixed return illustration showing a gross rate of
return in excess of 0%.]
















-------------------------------------------------------------------------------
This is a hypothetical variable annuity illustration, not a Contract, and is not
complete without all pages. The illustration can only be used when accompanied
or preceded by the Contract prospectus for the Valuemark(R) IV, a flexible
premium variable annuity. The prospectus contains more information, including
fees, expenses and risk factors, and should be read carefully before sending
money. All product guarantees are based on the claims paying ability of Allianz
Life Insurance Company of North America. Variable annuities are: not insured by
the FDIC or any other governmental agency; not deposits or obligations of, or
guarantees by, any bank or deposit or institution; and subject to investment
risks, including the possible loss of principal.
USAllianz products are issued by Allianz Life Insurance Company of North America
and distributed by its affiliate, USAllianz Investor Services, LLC, 5701 Golden
Hills Drive, Minneapolis, MN 55416-1297. Member NASD.
                                   Page x of y
Date                                                                    L30570


<PAGE>



                                                                           A-11

                            USALLIANZ VALUEMARK(R) IV
<TABLE>
<CAPTION>

PREPARED FOR                                   CONTRACT INFORMATION FOR FEATURES SELECTED
John Doe                                       Contract Type: Non-Qualified

                                               Guaranteed Minimum Income Benefit (GMIB):
PERIOD BEGINNING:
                                               Guaranteed Minimum Death Benefit (GMDB):

                 HYPOTHETICAL FIXED RATE OF RETURN ILLUSTRATION

                     GUARANTEED MINIMUM DEATH BENEFIT REPORT

  ------------------- ----- ----------------------- ---------------- -------------------- -------------------- ---------------------

                        AGE     HYPOTHETICAL GROSS       PURCHASE          WITHDRAWALS        CONTRACT VALUE             GMDB
   ANNIVERSARY YEAR             RATE OF RETURN         PAYMENTS

                             (NOT TO EXCEED 12%)
  ------------------- ----- ----------------------- ---------------- -------------------- -------------------- ---------------------

        <S>            <C>           <C>                <C>                  <C>                  <C>               <C>
      Mm/dd/yyyy       45           xx.xx%              $xxx.00         ($x,xxxx.00)          $x,xxxx.00            $x,xxx.00
  ------------------- ----- ----------------------- ---------------- -------------------- -------------------- ---------------------

</TABLE>

This hypothetical is based on the selected gross rate of return and calculates
the change in Contract value from the beginning period to the ending period,
adjusted for subsequent purchase payments and any withdrawals. Hypothetical
gross rate of return does not include any expenses and charges. However, all
values reflect the Contract maintenance charge, net rate of return, which takes
into consideration the applicable M & E charge, administration charge and
average Investment Option fee of .xxxx% .

An illustration showing a hypothetical 0% gross rate of return is contained on
the following page. This illustration is for illustrative purposes only and is
no guarantee of return or future performance.























-------------------------------------------------------------------------------
This is a hypothetical variable annuity illustration, not a Contract, and is not
complete without all pages. The illustration can only be used when accompanied
or preceded by the Contract prospectus for the Valuemark(R) IV, a flexible
premium variable annuity. The prospectus contains more information, including
fees, expenses and risk factors, and should be read carefully before sending
money. All product guarantees are based on the claims paying ability of Allianz
Life Insurance Company of North America. Variable annuities are: not insured by
the FDIC or any other governmental agency; not deposits or obligations of, or
guarantees by, any bank or deposit or institution; and subject to investment
risks, including the possible loss of principal.
USAllianz products are issued by Allianz Life Insurance Company of North America
and distributed by its affiliate, USAllianz Investor Services, LLC, 5701 Golden
Hills Drive, Minneapolis, MN 55416-1297. Member NASD.
                                   Page x of y
Date                                                                     L30570


<PAGE>



                                                                           A-12

                            USALLIANZ VALUEMARK(R) IV
                 HYPOTHETICAL FIXED RATE OF RETURN ILLUSTRATION

                     GUARANTEED MINIMUM DEATH BENEFIT REPORT
<TABLE>
<CAPTION>

PREPARED FOR                                   CONTRACT INFORMATION FOR FEATURES SELECTED
John Doe                                       Contract Type: Non-Qualified

                                               Guaranteed Minimum Income Benefit (GMIB):
PERIOD BEGINNING:
                                               Guaranteed Minimum Death Benefit (GMDB):

   ------------------- ------ ------------------- ------------- --------------- ---------------- ---------------

                         AGE      HYPOTHETICAL       PURCHASE     WITHDRAWALS    CONTRACT VALUE        GMDB
    ANNIVERSARY YEAR            GROSS RATE OF       PAYMENTS
                                    RETURN

                                   ( 0.00%)
   ------------------- ------ ------------------- ------------- --------------- ---------------- ---------------

       <S>              <C>         <C>            <C>              <C>             <C>             <C>
       Mm/dd/yyyy       45          xx.xx%         ($xxx.00)      $x,xxxx.00      $x,xxxx.00       $x,xxx.00

   ------------------- ------ ------------------- ------------- --------------- ---------------- ---------------

</TABLE>
This hypothetical is based on the selected gross rate of return and calculates
the change in Contract value from the beginning period to the ending period,
adjusted for subsequent purchase payments and any withdrawals. Hypothetical
gross rate of return does not include any expenses and charges. However, all
values reflect the Contract maintenance charge, net rate of return, which takes
into consideration the applicable M & E charge, administration charge and
average Investment Option fee of .xxxx% .

This illustration is for illustrative purposes only and is no guarantee of
return or future performance.

 [This page must accompany any fixed return illustration showing a gross rate of
return in excess of 0%.]





















--------------------------------------------------------------------------------
This is a hypothetical variable annuity illustration, not a Contract, and is not
complete without all pages. The illustration can only be used when accompanied
or preceded by the Contract prospectus for the Valuemark(R) IV, a flexible
premium variable annuity. The prospectus contains more information, including
fees, expenses, and risk factors, and should be read carefully before sending
money. All product guarantees are based on the claims paying ability of Allianz
Life Insurance Company of North America. Variable annuities are: not insured by
the FDIC or any other governmental agency; not deposits or obligations of, or
guarantees by, any bank or deposit or institution; and subject to investment
risks, including the possible loss of principal.
USAllianz products are issued by Allianz Life Insurance Company of North America
and distributed by its affiliate, USAllianz Investor Services, LLC, 5701 Golden
Hills Drive, Minneapolis, MN 55416-1297. Member NASD.
                                   Page x of y
Date                                                                    L30570



<PAGE>




                                                                           A-13

                            USALLIANZ VALUEMARK(R) IV
<TABLE>
<CAPTION>

PREPARED FOR                                   CONTRACT INFORMATION FOR FEATURES SELECTED
John Doe                                       Contract Type:          Non-Qualified

                                               Guaranteed Minimum Income Benefit (GMIB):
PERIOD BEGINNING:
                                               Guaranteed Minimum Death Benefit (GMDB):

                 HYPOTHETICAL FIXED RATE OF RETURN ILLUSTRATION

                    GUARANTEED MINIMUM INCOME BENEFIT REPORT


   ACCUMULATION PHASE                                                                                              PAYOUT PHASE
 ---------------- ----- ---------------- ------------- ----------- ----------- ------------- ---------- -- ---------- --------------
                   AGE    HYPOTHETICAL    NET PURCHASE  CONTRACT
   ANNIVERSARY           GROSS RATE OF    PAYMENTS*      VALUE     3% ANNUAL   MAXIMUM       GMIB          MONTHLY    ANNUAL
      YEAR                  RETURN                                 INCREASE    ANNIVERSARY
                        (NOT TO EXCEED                             AMOUNT      VALUE
                             12%)

 ---------------- ----- ---------------- ------------- ----------- ----------- ------------- ---------- -- ---------- --------------

     <S>           <C>       <C>            <C>        <C>          <C>          <C>           <C>        <C>           <C>
    Mm/dd/yyyy     45        xx.xx%         $xxx.00     $x,xxxx.00  $x,xxx.00    $x,xxx.00    $x,xxx.00     $x,xxx.00  $x,xxx.00
 --------------- ------ --------------- -------------- ----------- ----------- ------------- ---------- -- ---------- ---------- --
</TABLE>
*The Net Purchase Paymentcolumn represents purchase payments minus withdrawals
in the accumulation phase.

This hypothetical is based on the selected gross rate of return and calculates
the change in Contract value from the beginning period to the ending period,
adjusted for subsequent purchase payments and any withdrawals. Hypothetical
gross rate of return does not include any expenses and charges. However, all
values reflect the Contract maintenance charge, net rate of return, which takes
into consideration the applicable M & E charge, administration charge and
average Investment Option fee of .xxxx%.

An illustration showing a hypothetical 0% gross rate of return is contained on
the following page. This illustration is for illustrative purposes only and is
no guarantee of return or future performance.

















-------------------------------------------------------------------------------
This is a hypothetical variable annuity illustration, not a Contract, and is not
complete without all pages. The illustration can only be used when accompanied
or preceded by the Contract prospectus for the Valuemark(R) IV, a flexible
premium variable annuity. The prospectus contains more information, including
fees, expenses and risk factors, and should be read carefully before sending
money. All product guarantees are based on the claims paying ability of Allianz
Life Insurance Company of North America. Variable annuities are: not insured by
the FDIC or any other governmental agency; not deposits or obligations of, or
guarantees by, any bank or deposit or institution; and subject to investment
risks, including the possible loss of principal.
USAllianz products are issued by Allianz Life Insurance Company of North America
and distributed by its affiliate, USAllianz Investor Services, LLC, 5701 Golden
Hills Drive, Minneapolis, MN 55416-1297. Member NASD.
                                   Page x of y
Date                                                                    L30570


<PAGE>



                                                                           A-14

                          USALLIAZ VALUEMARK(R) IV
<TABLE>
<CAPTION>

PREPARED FOR                                   CONTRACT INFORMATION FOR FEATURES SELECTED
John Doe                                       Contract Type: Non-Qualified

                                               Guaranteed Minimum Income Benefit (GMIB):
PERIOD BEGINNING:
                                               Guaranteed Minimum Death Benefit (GMDB):

                 HYPOTHETICAL FIXED RATE OF RETURN ILLUSTRATION

                    GUARANTEED MINIMUM INCOME BENEFIT REPORT


ACCUMULATION PHASE                                                                                         PAYOUT PHASE
---------------- ------ -------------- ------------ ----------- ---------- -------------- ---------- -- ---------- ----------
                   AGE   HYPOTHETICAL   NET          CONTRACT    3%            MAXIMUM       GMIB        MONTHLY    ANNUAL
  ANNIVERSARY            GROSS RATE    PURCHASE       VALUE     ANNUAL      ANNIVERSARY
     YEAR                 OF RETURN     PAYMENTS*               INCREASE       VALUE
                                                                 AMOUNT
                           (0.00%)

---------------- ------ -------------- ------------ ----------- ---------- -------------- ---------- -- ---------- ----------

<S>            <C>      <C>            <C>           <C>        <C>         <C>          <C>            <C>        <C>
Mm/dd/yyyy     45       xx.xx%        $xxx.00    $x,xxxx.00  $x,xxx.00   $x,xxx.00    $x,xxx.00      $x,xxx.00  $x,xxx.00
---------------- ----- --------------- ------------ ----------- ---------- ------------- ---------- --- ---------- ----------
</TABLE>
*The Net Purchase Paymentcolumn represents purchase payments minus withdrawals
in the accumulation phase.

This hypothetical is based on the selected gross rate of return and calculates
the change in Contract value from the beginning period to the ending period,
adjusted for subsequent purchase payments and any withdrawals. Hypothetical
gross rate of return does not include any expenses and charges. However, all
values reflect the Contract maintenance charge, net rate of return, which takes
into consideration the applicable M & E charge, administration charge and
average Investment Option fee of .xxxx% .

This illustration is for illustrative purposes only and is no guarantee of
return or future performance.

[THIS PAGE MUST ACCOMPANY ANY FIXED RETURN ILLUSTRATION SHOWING A GROSS RATE OF
RETURN IN EXCESS OF 0.00%.]

















--------------------------------------------------------------------------------
This is a hypothetical variable annuity illustration, not a Contract, and is not
complete without all pages. The illustration can only be used when accompanied
or preceded by the Contract prospectus for the Valuemark(R) IV, a flexible
premium variable annuity. The prospectus contains more information, including
fees, expenses and risk factors, and should be read carefully before sending
money. All product guarantees are based on the claims paying ability of Allianz
Life Insurance Company of North America. Variable annuities are: not insured by
the FDIC or any other governmental agency; not deposits or obligations of, or
guarantees by, any bank or deposit or institution; and subject to investment
risks, including the possible loss of principal.
USAllianz products are issued by Allianz Life Insurance Company of North America
and distributed by its affiliate, USAllianz Investor Services, LLC, 5701 Golden
Hills Drive, Minneapolis, MN 55416-1297. Member NASD.
                                   Page x of y
Date                                                                     L30570


<PAGE>



                                                                           A-15

                              IMPORTANT DISCLOSURES
                   REQUIRED MINIMUM DISTRIBUTION ILLUSTRATION

 THIS IS AN ILLUSTRATION NOT A CONTRACT. The purpose of this illustration is to
 demonstrate how much an individual (or the beneficiary) MUST receive from the
 individual's qualified retirement plan and/or Individual Retirement Account
 (IRA). It illustrates the amount that must be distributed in accordance with
 IRS regulations, based upon the inputs provided and the assumptions underlying
 this illustration. No representations are made that these rates of return can
 be achieved for any one year or sustained over any period of time.

 The value of a variable annuity will fluctuate, based on the performance of the
 underlying Investment Options, and the Contract Owner may experience a gain or
 loss. Actual performance results may be more or less than those reflected in
 the hypothetical rates of return. The amount which will actually have to be
 withdrawn from an individual's qualified retirement plan or IRA upon reaching
 the required beginning date (see below) will depend upon actual Investment
 Option performance.

 This illustration may illustrate adjusted historical performance for one or
 more Investment Options. If more than one Investment Option is illustrated,
 performance may be shown as aggregate performance for all Investment Options
 selected. In addition, if you elect to illustrate more than one Investment
 Option and to hypothetically allocate more money to one option than to other
 options (for example, 50% to one Investment Option, 30% to a second Investment
 Option, and 20% to a third Investment Option), performance may be shown as
 weighted aggregate performance.

 This illustration, including any accompanying reports and graphs, must be
 preceded or accompanied by the variable annuity's current prospectus. The
 figures reflect the deduction of the applicable contingent deferred sales
 charge (CDSC). For complete information about USAllianz Valuemark IV, a
 flexible Purchase Payment variable annuity, including fees and expenses, refer
 to the prospectus. Read it carefully before sending money.

 STANDARDIZED AVERAGE ANNUAL RETURN: Any adjusted historical performance
 illustration is accompanied by Standardized Average Annual Return for each
 Investment Option depicted in the illustration. Standardized return is
 calculated using uniform guidelines as mandated by the Securities and Exchange
 Commission. Standardized return figures assume a one-time lump sum purchase
 payment, and do not reflect the effect of taxation. Standardized return is
 shown for the most recent 1, 5, and 10 year periods, or from the inception date
 of the Investment Option, if later. In contrast, illustration material may
 depict returns from the inception date of the applicable Investment Option, if
 earlier than the inception date of the Investment Option. Standardized return
 includes the effect of all Investment Option expenses and all Contract
 expenses. If Contract expenses vary depending upon which features are selected,
 standardized return will reflect the highest potential expenses. In contrast,
 an illustration may reflect only certain expenses. Standardized return also
 assumes the assessment of a CDSC at the end of each applicable period.
 Standardized return is computed as of the most recent calendar quarter.

The ADJUSTED HISTORICAL AVERAGE ANNUAL RETURN is based upon the weighted
aggregate historical rate of return on the Investment Options selected,
commencing on the hypothetical purchase date, and calculates the change in
Contract value from the beginning of the hypothetical period to the end of the
period, adjusted for additional Purchase Payments and any withdrawals. The
adjusted historical average annual return commences on the inception date of the
Investment Option and includes mortality and expense charges, administration
charges, and Investment Option fees, but does not include CDSC.

Weighted aggregate return for the Investment Options selected for the total
period shown is: XX.XX%. Average annual returns for each of the Investment
Options selected for the most recent 1, 5, and 10 year periods (computed as of
the most recent calendar quarter) are shown on another page of this illustration



--------------------------------------------------------------------------------
This is a hypothetical variable annuity illustration, not a Contract, and is not
complete without all pages. The illustration can only be used when accompanied
or preceded by the Contract prospectus for the Valuemark(R) IV, a flexible
premium variable annuity. The prospectus contains more information, including
fees, expenses and risk factors, and should be read carefully before sending
money. All product guarantees are based on the claims paying ability of Allianz
Life Insurance Company of North America. Variable annuities are: not insured by
the FDIC or any other governmental agency; not deposits or obligations of, or
guarantees by, any bank or deposit or institution; and subject to investment
risks, including the possible loss of principal.
USAllianz products are issued by Allianz Life Insurance Company of North America
and distributed by its affiliate, USAllianz Investor Services, LLC, 5701 Golden
Hills Drive, Minneapolis, MN 55416-1297. Member NASD.
                                   Page x of y
Date                                                                     L30570


<PAGE>



                                                                            A-16

REQUIRED BEGINNING DATE FOR PAYMENTS

 Internal Revenue Code 401(a)(9) requires that distributions from a qualified
 Contract start by the required beginning date. For IRA Contracts, the required
 beginning date is April 1 following the calendar year in which age 70 1/2 is
 reached. For TSA Contracts or 401 plan benefits, the required beginning date is
 April 1 following the calendar year in which age 70 1/2 is reached, or
 following the calendar year in which separation from service occurs, whichever
 is later. For 401 plan benefits of a 5% owner of the employer, the required
 beginning date is the same as that for an IRA Contract.

AMOUNT OF PAYMENTS

 Payments after the required beginning date must be made on a schedule that will
 pay out the entire value of the Contract over the life or life expectancy of
 the Contractholder and an individual 10 years younger than the Contractholder,
 regardless of the actual age of any designated beneficiary, except when
 distributions can be reduced by taking into account the life expectancy of a
 beneficiary who is a spouse more than 10 years younger than the Contractholder.

 If the required minimum distribution is met other than through the
 annuitization of the Contract, then by the required beginning date the
 distribution for the calendar year preceding the required beginning date will
 need to be taken. A distribution will need to be taken for each subsequent
 calendar year (including the year in which the required beginning date occurs)
 by December 31 of that calendar year.

 If the required minimum distribution is met through the annuitization of the
 Contract, then substantially equal payments must be made at least annually
 starting by the required beginning date.

CONTRACT AGGREGATION

The IRS allows the Contractholder to take a distribution from one IRA to meet
the distribution requirements for all IRAs, and to take a distribution from one
TSA for all TSAs that the Contractholder owns.

 PENALTIES

  Failure to receive such a distribution can subject the Contractholder to a 50%
  excise tax on the amount by which distributions fall short of the Internal
  Revenue Service (IRS) requirement. For example, if the RMD for a given year is
  $2,000.00, and $1,500.00 is withdrawn, the $500.00 shortfall may be subject to
  a 50% excise tax imposed by the IRS.

  DIRECT ROLLOVERS LIMITED

 In addition, direct rollovers of distribution from a TSA or 401 plan are
 restricted beginning January 1 of the year age 70 1/2 will be reached. From
 that point forward, a direct rollover is permitted only if the amount is not an
 annuitization payment, and the Contractholder has already withdrawn from the
 Contract during the current year an amount equal to the required minimum
 distribution for the year calculated based on that Contract alone and their
 single life expectancy. For assistance in determining how the required minimum
 distribution rules apply to the Contractholder and the alternative best suited
 to their needs, please consult a qualified tax advisor.

TAXES: The effects of income, penalty and state premium taxes have not been
reflected in the illustration. While withdrawals may or may not be depicted
within this illustration, withdrawals from the Contract will be subject to
ordinary income tax to the extent that the Contract value immediately before the
withdrawal exceeds the total amount of after-tax money paid into the Contract. A
withdrawal in excess of the taxable amount will constitute a nontaxable return
of principal. Withdrawals may be subject to a surrender charge, included in
taxable income, and prior to age 59 1/2 may be subject to a 10% federal tax
penalty. A withdrawal in excess of the contact's free withdrawal amount may be
subject to a maximum CDSC of 7%. The amount of the CDSC declines to 0% over
time.



--------------------------------------------------------------------------------
This is a hypothetical variable annuity illustration, not a Contract, and is not
complete without all pages. The illustration can only be used when accompanied
or preceded by the Contract prospectus for the Valuemark(R) IV, a flexible
premium variable annuity. The prospectus contains more information, including
fees, expenses and risk factors, and should be read carefully before sending
money. All product guarantees are based on the claims paying ability of Allianz
Life Insurance Company of North America. Variable annuities are: not insured by
the FDIC or any other governmental agency; not deposits or obligations of, or
guarantees by, any bank or deposit or institution; and subject to investment
risks, including the possible loss of principal.
USAllianz products are issued by Allianz Life Insurance Company of North America
and distributed by its affiliate, USAllianz Investor Services, LLC, 5701 Golden
Hills Drive, Minneapolis, MN 55416-1297. Member NASD.
                                   Page x of y
Date                                                                     L30570


<PAGE>



                                                                           A-17

For any tax-qualified account, e.g., IRA or TSA, the tax deferred growth feature
is already provided by the tax qualified retirement plan. Therefore, product
features and benefits other than tax deferral should be reasons for acquiring an
annuity in a qualified retirement plan. . If the Contract is an individual
retirement annuity or other qualified Contract, the Contract Owner will
generally be taxed on all amounts withdrawn, or received on withdrawal. The tax
consequences will be different, however, if the Contract is a Roth IRA, or a
traditional non-deductible IRA. See your tax advisor and read the prospectus for
additional information.

The tax treatment of death benefit proceeds of an annuity Contract differs from
the tax treatment of a life insurance policy. This section is designed to
provide information on the subjects covered. It is not, however, intended to
provide specific legal, tax, or other professional advice. For complete details,
consult with your tax advisor or attorney and refer to the prospectus.

COSTS AND EXPENSES: The Contract has insurance features and investment features,
and there are costs related to each.

Each year, Allianz Life deducts a $30 Contract maintenance charge from your
Contract. Allianz Life currently waives this charge if your Contract value is at
least $50,000.

Allianz Life deducts a mortality and expense risk charge which variesdepending
upon your selection of the Guaranteed Minimum Income Benefit and the Guaranteed
Minimum Death Benefit (GMDB) options . Allianz Life also deducts an
administration charge. This charge, together with the Contract maintenance
charge, is for all the expenses associated with the administration of the
Contract. The table below shows the combinations available to you and their
Separate Account expenses during the Accumulation Phase, as a percentage of the
average daily value of the Contract value allocated to the Variable Investment
Options.
<TABLE>
<CAPTION>


                                                CHARGES FOR CONTRACT WITH              CHARGES FOR CONTRACT WITH
                                                         NO GMIB                            TRADITIONAL GMIB
                                                M&E      Admin.     Total                M&E     Admin.    Total
                                               CHARGE    CHARGE    CHARGE              CHARGE    CHARGE   CHARGE
<S>                                             <C>       <C>       <C>                 <C>      <C>       <C>
Traditional Guaranteed Minimum Death Benefit    1.60%     0.15%     1.75%               1.75%    0.15%     1.90%
Earnings Protection
      Guaranteed Minimum Death Benefit          1.90%     0.15%     2.05%               2.05%    0.15%     2.20%
Enhanced Guaranteed Minimum Death Benefit       1.90%     0.15%     2.05%               2.00%    0.15%     2.15%
</TABLE>

The selection of the GMIB and the GMDB must be made at the time of initial
Purchase Payment. Once selected, they cannot be changed.

The GMIB guarantees that your Annuity Payments will be equal to the guaranteed
fixed payout rates applied to the GMIB value. We will use current fixed payout
rates applied to the Contract Value (adjusted for any applicable MVA less any
applicable premium tax) adjusted for any applicable MVA (less any applicable
premium tax) to calculate your Annuity Payments if that produces a greater
payment. However, if we do not use the GMIB value to calculate your Annuity
Payments you will incur higher Contract expenses without receiving any explicit
benefit from the GMIB option.

The GMIB is subject to a 7-year waiting period and your Contract must be
annuitized under one of the fixed Annuity Options 1-5. If you do not hold your
Contract for seven years before the Income Date, you cannot take advantage of
the GMIB benefit.

You can always annuitize your Contract Value two years or more after the Issue
Date under a fixed and/or variable Annuity Option. Some states may require a
shorter period of time.

The Traditional GMIB Value is equal to the total Purchase Payments adjusted for
partial withdrawals:





-------------------------------------------------------------------------------
This is a hypothetical variable annuity illustration, not a Contract, and is not
complete without all pages. The illustration can only be used when accompanied
or preceded by the Contract prospectus for the Valuemark(R) IV, a flexible
premium variable annuity. The prospectus contains more information, including
fees, expenses and risk factors, and should be read carefully before sending
money. All product guarantees are based on the claims paying ability of Allianz
Life Insurance Company of North America. Variable annuities are: not insured by
the FDIC or any other governmental agency; not deposits or obligations of, or
guarantees by, any bank or deposit or institution; and subject to investment
risks, including the possible loss of principal.
USAllianz products are issued by Allianz Life Insurance Company of North America
and distributed by its affiliate, USAllianz Investor Services, LLC, 5701 Golden
Hills Drive, Minneapolis, MN 55416-1297. Member NASD.
                                   Page x of y
Date                                                                    L30570


<PAGE>



                                                                           A-18

The Traditional GMDB guarantees the greater of the following, less any
applicable premium tax:
     oContract Value or
     ototal Purchase Payments adjusted for partial withdrawals.

The Enhanced GMDB guarantees the greater of the following, less any applicable
premium tax:
o Contract Value or
o The Enhanced Guaranteed Minimum Death Benefit which is equal to the greater
  of:
        o  total Purchase Payments adjusted for partial withdrawals increased
           by 3% on each Contract Anniversary prior to age 81 (maximum of 150%
           of purchase payments adjusted for partial withdrawals); or

        o  the maximum Contract Value on any Contract Anniversary plus
           subsequent additional Purchase Payments and minus subsequent
           adjusted partial withdrawals prior to age 81.

The EP GMDB guarantees the greater of 1, 2 or 3, less any applicable premium
tax:
1)   Contract Value;
2)   total Purchase Payments less adjusted partial withdrawals;
3)   Contract Value PLUS
     o If you are 69 or younger on the Issue Date, 50% of the lesser of (a) or
       (b),or
     o If you are 70 or older on the Issue Date, 35% of the lesser of (a) or (b)
     (a) Is the Contract Value minus total Purchase Payments.
     (b) Is three times the total Purchase Payments made in the first two
         Contract years.

If you take money out of the Contract, Allianz Life may assess a Contingent
Deferred Sales Charge (CDSC). The CDSC starts at 6% in the first year and
declines to 0% after we have had Purchase Payments for 7 complete years. A
different charge applies to liquidations from the Period Certain Only annuity
option during the payout phase called a commutation fee.

There are also daily investment charges which currently range, on an annual
basis, from _____% to ____% of the average daily value of the Investment Option,
depending upon the Investment Option.

This illustration reflects the costs of all optional features you have selected.
It does not reflect costs associated with features you have not selected. If you
choose to add optional features, it will increase costs and reduce returns. Some
optional features must be selected at the issue date, and cannot be added once
the Contract is issued.

The "CONTRACT VALUE" for any point in time is an amount equal to the sum of each
Accumulation Unit Value multiplied by the number of Units allocated to the
Contract for each Investment Option. This value will fluctuate due to the
performance of the selected Investment Options. The Contract Value reflects all
Contract charges, and Investment Option expenses for the Contract features
selected but does not reflect the CDSC. It does not reflect the impact of
premium taxes, income taxes or the 10% federal penalty tax for withdrawals prior
to age 59 1/2.

The "CASH SURRENDER VALUE" reflects all of the expenses and charges assessed
against "Contract value", and also reflects any CDSC if applicable. It does not
reflect the impact of premium taxes, income taxes or the 10% federal penalty tax
for withdrawals prior to age 59 1/2.
IMPORTANT CONSIDERATIONS: Past performance is not a guarantee of future results.
Investment returns and principal value will fluctuate with market conditions so
that units, when redeemed may be worth more or less than the original cost.
Product and features may not be available in all states. All product guarantees
are based on the claims paying ability of Allianz Life Insurance Company of
North America. High yield securities inherently have a high degree of market
risk in addition to credit risk and potential illiquidity. Index Investment
Options seek to match the performance of specified market indexes. Investors
cannot invest directly into indexes. Money invested in a specific sector or
industry is subject to a higher degree of risk than money that is diversified.
Small cap stocks may be more volatile than large cap or more established
companies' securities. International investing involves some risks not presented
with U.S. investments, such as currency fluctuation and political volatility. An
investment in the Money Market fund is neither insured nor guaranteed by the
FDIC or any other governmental agency. Although the fund seeks to preserve your
$1.00 per share, it is possible to lose money in the fund.
-------------------------------------------------------------------------------
This is a hypothetical variable annuity illustration, not a Contract, and is not
complete without all pages. The illustration can only be used when accompanied
or preceded by the Contract prospectus for the Valuemark(R) IV, a flexible
premium variable annuity. The prospectus contains more information, including
fees, expenses and risk factors, and should be read carefully before sending
money. All product guarantees are based on the claims paying ability of Allianz
Life Insurance Company of North America. Variable annuities are: not insured by
the FDIC or any other governmental agency; not deposits or obligations of, or
guarantees by, any bank or deposit or institution; and subject to investment
risks, including the possible loss of principal.
USAllianz products are issued by Allianz Life Insurance Company of North America
and distributed by its affiliate, USAllianz Investor Services, LLC, 5701 Golden
Hills Drive, Minneapolis, MN 55416-1297. Member NASD.
                                   Page x of y
Date                                                                     L30570


<PAGE>


                                                                           A-19

                       STANDARDIZED AVERAGE ANNUAL RETURN
                      AND ADJUSTED INVESTMENT OPTION RETURN

 As of [12/31/2000], a one time Purchase Paymentof $1,000 if withdrawn would
 have generated the following Standardized Average Annual Return, taking into
 consideration all Contract charges but without regard to taxes:
<TABLE>
<CAPTION>

                                                                           SINCE       DATE OF        SINCE         DATE OF
                                                                     INVESTMENTOPTION INVESTMENTOPTION SUBACCOUNT   SUBACCOUNT
INVESTMENT OPTION                     1 YEAR       5 YEAR     10 YEARS   INCEPTION    INCEPTION      INCEPTION       INCEPTION
<S>                                                                                                               <C>
Alger American Growth Fund                 *             *            *                     *                     1/22/2001
USAllianz Strategic Growth Fund      (24.76%)        7.29%            *     11.02%                                4/19/1995

</TABLE>


Standardized average annual return figures are calculated from the inception
date of the applicable Allianz Life Sub-Account. Figures reflect the deduction
of all Contract and Investment Option charges. Where there is a varying charge
depending upon which feature selected, the highest potential charge is shown.
The effect of the CDSC is reflected at the end of each period shown. Investment
Option returns prior to SubAccount inception have been adjusted for Contract
expenses.




Past performance is not a guarantee of future results.


[THIS PAGE MUST ACCOMPANY ANY PAYOUT ILLUSTRATION CONTAINING ADJUSTED HISTORICAL
 INFORMATION]






















-------------------------------------------------------------------------------
This is a hypothetical variable annuity illustration, not a Contract, and is not
complete without all pages. The illustration can only be used when accompanied
or preceded by the Contract prospectus for the Valuemark(R) IV, a flexible
premium variable annuity. The prospectus contains more information, including
fees, expenses and risk factors, and should be read carefully before sending
money. All product guarantees are based on the claims paying ability of Allianz
Life Insurance Company of North America. Variable annuities are: not insured by
the FDIC or any other governmental agency; not deposits or obligations of, or
guarantees by, any bank or deposit or institution; and subject to investment
risks, including the possible loss of principal.
USAllianz products are issued by Allianz Life Insurance Company of North America
and distributed by its affiliate, USAllianz Investor Services, LLC, 5701 Golden
Hills Drive, Minneapolis, MN 55416-1297. Member NASD.
                                   Page x of y
Date                                                                     L30570


<PAGE>


                                                                           A-20


                            USALLIAZ VALUEMARK(R) IV
<TABLE>
<CAPTION>

PREPARED FOR                                   CONTRACT INFORMATION FOR FEATURES SELECTED
John Doe                                       Contract Type: Non-Qualified

                                               Guaranteed Minimum Income Benefit (GMIB):
PERIOD BEGINNING:
                                               Guaranteed Minimum Death Benefit (GMDB):


                          REQUIRED MINIMUM DISTRIBUTION

                   BASED UPON ADJUSTED HISTORICAL PERFORMANCE

                 Age          Adjusted Historical          Applicable         Contract        Annual         Cumulative
                             Average Annual Return           Divisor            Value         Payout           Payout
                 <S>              <C>                        <C>               <C>              <C>              <C>
                 51                xx.xx%                     33.1              10,000           302              302
                 52                                           32.2              10,183           316              618
                 53                                           31.3              10,360           331              949
                 54                                           30.4              10,530           346            1,296
                 55                                           29.5              10,693           362            1,658
                 56                                           28.6              10,847           379            2,037
                 57                                           27.7              10,991           397            2,434
                 58                                           26.8              11,124           415            2,849
                 59                                           25.9              11,245           434            3,284
                 60                                           25.0              11,351           454            3,738
                 61                                           24.2              11,442           473            4,210
                 62                                           23.3              11,517           494            4,705
                 63                                           22.5              11,574           514            5,219
                 64                                           21.6              11,613           538            5,757
                 65                                           20.8              11,629           559            6,316
                 66                                           20.0              11,623           581            6,897
                 67                                           19.2              11,594           604            7,501
                 68                                           18.4              11,540           627            8,128
                 69                                           17.6              11,458           651            8,779
                 70                                           16.8              11,348           675            9,455


</TABLE>




-------------------------------------------------------------------------------
This is a hypothetical variable annuity illustration, not a Contract, and is not
complete without all pages. The illustration can only be used when accompanied
or preceded by the Contract prospectus for the Valuemark(R) IV, a flexible
premium variable annuity. The prospectus contains more information, including
fees, expenses and risk factors, and should be read carefully before sending
money. All product guarantees are based on the claims paying ability of Allianz
Life Insurance Company of North America. Variable annuities are: not insured by
the FDIC or any other governmental agency; not deposits or obligations of, or
guarantees by, any bank or deposit or institution; and subject to investment
risks, including the possible loss of principal.
USAllianz products are issued by Allianz Life Insurance Company of North America
and distributed by its affiliate, USAllianz Investor Services, LLC, 5701 Golden
Hills Drive, Minneapolis, MN 55416-1297. Member NASD.
                                   Page x of y
Date                                                                    L30570


<PAGE>


                                                                            A-21
<TABLE>
<CAPTION>


                            USALLIAZ VALUEMARK(R) IV

PREPARED FOR                                   CONTRACT INFORMATION FOR FEATURES SELECTED
John Doe                                       Contract Type: Non-Qualified

                                               Guaranteed Minimum Income Benefit (GMIB):
PERIOD BEGINNING:
                                               Guaranteed Minimum Death Benefit (GMDB):

                          REQUIRED MINIMUM DISTRIBUTION

                   BASED UPON ADJUSTED HISTORICAL PERFORMANCE
                             Adjusted Historical
                 Age           Average Annual          Applicable           Contract          Annual          Cumulative
                                   Return                Divisor              Value           Payout            Payout
                 <S>                                      <C>                 <C>                <C>            <C>
                 71                                       16.0                11,206             700            10,155
                 72                                       15.3                11,031             721            10,876
                 73                                       14.6                10,825             741            11,617
                 74                                       13.9                10,588             762            12,379
                 75                                       13.2                10,318             782            13,161
                 76                                       12.5                10,013             801            13,962
                 77                                       11.9                 9,672             813            14,775
                 78                                       11.2                 9,303             831            15,605
                 79                                       10.6                 8,896             839            16,444
                 80                                       10.0                 8,459             846            17,290
                 81                                        9.5                 7,994             841            18,132
                 82                                        8.9                 7,510             844            18,976
                 83                                        8.4                 7,000             833            19,809
                 84                                        7.9                 6,475             820            20,628
                 85                                        7.4                 5,938             802            21,431
                 86                                        6.9                 5,392             781            22,212
                 87                                        6.5                 4,841             745            22,957
                 88                                        6.1                 4,301             705            23,662
                 89                                        5.7                 3,776             662            24,325
                 90                                        5.3                 3,269             617            24,941
</TABLE>
Annual Payout is the Contract value divided by the applicable divisor.

This illustration is based upon weighted aggregate historical returns during the
period indicated. Past performance is not a guarantee of future results. This
illustration is for illustrative purposes only and is no guarantee of return or
future performance.

Average annual returns for each of the Investment Options selected for the most
recent 1, 5, and 10 year periods (computed as of the most recent calendar
quarter) are shown on another page of this illustration.







-------------------------------------------------------------------------------
This is a hypothetical variable annuity illustration, not a Contract, and is not
complete without all pages. The illustration can only be used when accompanied
or preceded by the Contract prospectus for the Valuemark(R) IV, a flexible
premium variable annuity. The prospectus contains more information, including
fees, expenses and risk factors, and should be read carefully before sending
money. All product guarantees are based on the claims paying ability of Allianz
Life Insurance Company of North America. Variable annuities are: not insured by
the FDIC or any other governmental agency; not deposits or obligations of, or
guarantees by, any bank or deposit or institution; and subject to investment
risks, including the possible loss of principal.
USAllianz products are issued by Allianz Life Insurance Company of North America
and distributed by its affiliate, USAllianz Investor Services, LLC, 5701 Golden
Hills Drive, Minneapolis, MN 55416-1297. Member NASD.
                                   Page x of y
Date                                                                    L30570


<PAGE>


                                                                            A-22


                              IMPORTANT DISCLOSURES
                        ADJUSTED HISTORICAL ILLUSTRATION

 THIS IS AN ILLUSTRATION NOT A CONTRACT. The purpose of this illustration is to
 demonstrate how the performance of the underlying Investment Options offered
 through the Contract may affect Contract values, death benefits, and income
 benefits over an extended period of time. This illustration is based on
 historical rates of return and is not intended to serve as a projection or
 prediction of future investment returns. It illustrates how much the Contract
 would hypothetically be worth, and how much the guaranteed death benefit and
 guaranteed income benefit would be, at the end of each year if: (1) the product
 were offered and the customer purchased the variable annuity on the
 hypothetical Contract date; (2) the customer had made the purchase payments
 shown; and (3) the customer had allocated the purchase payments to the
 Investment Options indicated.

 To assist you in understanding this illustration, mathematical depictions of
 hypothetical performance may be accompanied by visual depictions, including pie
 charts, graphs, and other types of charts.

 The value of a variable annuity will fluctuate, based on the performance of the
 underlying Investment Options, and the Contract Owner may experience a gain or
 loss. Actual performance results may be more or less than those shown on this
 illustration and will depend on a number of factors, including the choice and
 investment experience of the variable Investment Options.

 This illustration may illustrate adjusted historical performance for one or
 more Investment Options. If more than one Investment Option is illustrated,
 performance may be shown as aggregate performance for all Investment Options
 selected. In addition, if you elect to illustrate more than one Investment
 Option and to hypothetically allocate more money to one option than to other
 options (for example, 50% to one Investment Option, 30% to a second Investment
 Option, and 20% to a third Investment Option), performance may be shown as
 weighted aggregate performance.

 Performance data for the Investment Options illustrated in this illustration
 reflects the deduction of the Contract mortality and expense risk charge,
 administration charge and Contract maintenance charge. The fees and expenses of
 the underlying Investment Options which serve as funding vehicles are also
 reflected. The contingent deferred sales charge (CDSC) may or may not be
 reflected, depending upon what is being illustrated. For example, the CDSC
 would be deducted from cash surrender value figures that are illustrated, but
 not Contract value figures. For complete information about USAllianz Valuemark
 IV, a flexible Purchase Payment variable annuity, including fees and expenses,
 refer to the prospectus from USAllianz Investor Services, LLC. Read it
 carefully before sending money.

 STANDARDIZED AVERAGE ANNUAL RETURN: Any adjusted historical performance
 illustration is accompanied by Standardized Average Annual Return for each
 Investment Option depicted in the illustration. Standardized return is
 calculated using uniform guidelines as mandated by the Securities and Exchange
 Commission. Standardized return figures assume a one-time lump sum purchase
 payment, and do not reflect the effect of taxation. Standardized return is
 shown for the most recent 1, 5, and 10 year periods, or from the inception date
 of the Investment Option, if later. In contrast, illustration material may
 depict returns from the inception date of the applicable Investment Option, if
 earlier than the inception date of the Investment Option. Standardized return
 includes the effect of all Investment Option expenses and all Contract
 expenses. If Contract expenses vary depending upon which features are selected,
 standardized return will reflect the highest potential expenses. In contrast,
 an illustration may reflect only certain expenses. Standardized return also
 assumes the assessment of a CDSC at the end of each applicable period.
 Standardized return is computed as of the most recent calendar quarter.
The ADJUSTED HISTORICAL AVERAGE ANNUAL RETURN is based upon the weighted
aggregate historical rate of return on the Investment Options selected,
commencing on the hypothetical purchase date, and calculates the change in
Contract value from the beginning of the hypothetical period to the end of the
period, adjusted for additional purchase payments and any withdrawals. The
adjusted historical average annual return commences on the inception date of the
Investment Option and includes mortality and expense charges, administration
charges, and Investment Option fees, but does not include CDSC.



--------------------------------------------------------------------------------
This is a hypothetical variable annuity illustration, not a Contract, and is not
complete without all pages. The illustration can only be used when accompanied
or preceded by the Contract prospectus for the Valuemark(R) IV, a flexible
premium variable annuity. The prospectus contains more information, including
fees, expenses and risk factors, and should be read carefully before sending
money. All product guarantees are based on the claims paying ability of Allianz
Life Insurance Company of North America. Variable annuities are: not insured by
the FDIC or any other governmental agency; not deposits or obligations of, or
guarantees by, any bank or deposit or institution; and subject to investment
risks, including the possible loss of principal.
USAllianz products are issued by Allianz Life Insurance Company of North America
and distributed by its affiliate, USAllianz Investor Services, LLC, 5701 Golden
Hills Drive, Minneapolis, MN 55416-1297. Member NASD.
                                   Page x of y
Date                                                                    L30570


<PAGE>


                                                                           A-23

Weighted aggregate return for the Investment Options selected for the total
period shown is: XX.XX%. Average annual returns for each of the Investment
Options selected for the most recent 1, 5, and 10 year periods (computed as of
the most recent calendar quarter) are shown on another page of this
illustration.

TAXES: The effect of income, penalty, and state premium taxes have not been
reflected in this illustration. While withdrawals may or may not be depicted
within this illustration, withdrawals from the Contract will be subject to
ordinary income tax to the extent that the Contract value immediately before the
withdrawal exceeds the total amount of after-tax money paid into the Contract. A
withdrawal in excess of the taxable amount will constitute a nontaxable return
of principal. Withdrawals may be subject to a surrender charge, included in
taxable income, and prior to age 59 1/2 may be subject to a 10% federal tax
penalty.

For any tax-qualified account, e.g., IRA or TSA, the tax deferred growth feature
is already provided by the tax qualified retirement plan. Therefore, product
features and benefits other than tax deferral should be reasons for acquiring an
annuity in a qualified retirement plan. If the Contract is an individual
retirement annuity or other qualified Contract, the Contract Owner will
generally be taxed on all amounts withdrawn, or received on withdrawal. The tax
consequences will be different, however, if the Contract is a Roth IRA, or a
traditional non-deductible IRA.

The tax treatment of death benefit proceeds of an annuity Contract differs from
the tax treatment of a life insurance policy. It is not, however, intended to
provide specific legal, tax or other professional advice. For complete details,
consult with your tax advisor or attorney and refer to the prospectus.

Please read the prospectus for further information.

COSTS AND EXPENSES: The Contract has insurance features and investment features,
and there are costs related to each.

Each year, Allianz Life deducts a $30 Contract maintenance charge from your
Contract. Allianz Life currently waives this charge if your Contract value is at
least $50,000.

Allianz Life deducts a mortality and expense risk charge whichvaries depending
upon your selection of the Guaranteed Minimum Income Benefit and the Guaranteed
Minimum Death Benefit (GMDB) options . Allianz Life also deducts an
administration charge. This charge, together with the Contract maintenance
charge, is for all the expenses associated with the administration of the
Contract. The table below shows the combinations available to you and their
Separate Account expenses during the Accumulation Phase, as a percentage of the
average daily value of the Contract value allocated to the Variable Investment
Options.

<TABLE>
<CAPTION>

                                                CHARGES FOR CONTRACT WITH              CHARGES FOR CONTRACT WITH
                                                         NO GMIB                            TRADITIONAL GMIB
                                                M&E      Admin.     Total                M&E     Admin.    Total
                                               CHARGE    CHARGE    CHARGE              CHARGE    CHARGE   CHARGE
<S>                                             <C>       <C>       <C>                 <C>      <C>       <C>
Traditional Guaranteed Minimum Death Benefit    1.60%     0.15%     1.75%               1.75%    0.15%     1.90%
Earnings Protection
      Guaranteed Minimum Death Benefit          1.90%     0.15%     2.05%               2.05%    0.15%     2.20%
Enhanced Guaranteed Minimum Death Benefit       1.90%     0.15%     2.05%               2.00%    0.15%     2.15%

</TABLE>

The selection of the GMIB and GMDB must be made at the time of initial Purchase
Payment. Once selected, they cannot be changed.

The GMIB guarantees that your Annuity Payments will be equal to the guaranteed
fixed payout rates applied to the GMIB value. We will use current fixed payout
rates applied to the Contract Value adjusted for any applicable MVA (less any
applicable premium tax) to calculate your Annuity Payments if that produces a
greater payment. However, if we do not use the GMIB value to calculate your
Annuity Payments you will incur higher Contract expenses without receiving any
explicit benefit from the GMIB option.

--------------------------------------------------------------------------------
This is a hypothetical variable annuity illustration, not a Contract, and is not
complete without all pages. The illustration can only be used when accompanied
or preceded by the Contract prospectus for the Valuemark(R) IV, a flexible
premium variable annuity. The prospectus contains more information, including
fees, expenses and risk factors, and should be read carefully before sending
money. All product guarantees are based on the claims paying ability of Allianz
Life Insurance Company of North America. Variable annuities are: not insured by
the FDIC or any other governmental agency; not deposits or obligations of, or
guarantees by, any bank or deposit or institution; and subject to investment
risks, including the possible loss of principal.
USAllianz products are issued by Allianz Life Insurance Company of North America
and distributed by its affiliate, USAllianz Investor Services, LLC, 5701 Golden
Hills Drive, Minneapolis, MN 55416-1297. Member NASD.
                                   Page x of y
Date                                                                    L30570


<PAGE>


                                                                           A-24

The GMIB is subject to a 7-year waiting period and your Contract must be
annuitized under one of the fixed Annuity Options 1-5. If you do not hold your
Contract for seven years before the Income Date, you cannot take advantage of
the GMIB benefit.

You can always annuitize your Contract Value two years or more after the Issue
Date under a fixed and/or variable Annuity Option. Some states may require a
shorter period of time.

The Traditional GMIB Value is equal to the total Purchase Payments adjusted for
partial withdrawals:

The Traditional GMDB guarantees the greater of the following, less any
applicable premium tax:
     oContract Value or
     ototal Purchase Payments adjusted for partial withdrawals.

The Enhanced GMDB guarantees the greater of the following, less any applicable
premium tax:
o Contract Value or
o The Enhanced Guaranteed Minimum Death Benefit which is equal to the greater
  of:
        o  total Purchase Payments adjusted for partial withdrawals increased
           by 3% on each Contract Anniversary prior to age 81 (maximum of 150%
           of purchase payments adjusted for partial withdrawals); or

        o  the maximum Contract Value on any Contract Anniversary plus
           subsequent additional Purchase Payments and minus subsequent
           adjusted partial withdrawals prior to age 81.

The EP GMDB guarantees the greater of 1, 2 or 3, less any applicable premium
tax:
1)   Contract Value;
2)   total Purchase Payments less adjusted partial withdrawals;
3)   Contract Value PLUS
     o If you are 69 or younger on the Issue Date, 50% of the lesser of (a) or
       (b),or
     o If you are 70 or older on the Issue Date, 35% of the lesser of (a) or (b)
     (a) Is the Contract Value minus total Purchase Payments.
     (b) Is three times the total Purchase Payments made in the first two
         Contract years.

If you take money out of the Contract, Allianz Life may assess a Contingent
Deferred Sales Charge (CDSC). The CDSC starts at 6% in the first year and
declines to 0% after we have had Purchase Payments for 7 complete years. A
different charge applies to liquidations from the Period Certain Only annuity
option during the payout phase called a commutation fee.

There are also daily investment charges which currently range, on an annual
basis, from _____% to _____% of the average daily value of the Investment
Option, depending upon the Investment Option.

This illustration reflects the costs of all optional features you have selected.
It does not reflect costs associated with features you have not selected. If you
choose to add optional features, it will increase costs and reduce returns. Some
optional features must be selected at the issue date, and cannot be added once
the Contract is issued.

The "CONTRACT VALUE" for any point in time is an amount equal to the sum of each
Accumulation Unit Value multiplied by the number of Units allocated to the
Contract for each Investment Option. This value will fluctuate due to the
performance of the selected Investment Options. The Contract Value reflects all
Contract charges, and Investment Option expenses for the Contract features
selected but does not reflect the CDSC. It does not reflect the impact of
premium taxes, income taxes or the 10% federal penalty tax for withdrawals prior
to age 59 1/2.


-------------------------------------------------------------------------------
This is a hypothetical variable annuity illustration, not a Contract, and is not
complete without all pages. The illustration can only be used when accompanied
or preceded by the Contract prospectus for the Valuemark(R) IV, a flexible
premium variable annuity. The prospectus contains more information, including
fees, expenses and risk factors, and should be read carefully before sending
money. All product guarantees are based on the claims paying ability of Allianz
Life Insurance Company of North America. Variable annuities are: not insured by
the FDIC or any other governmental agency; not deposits or obligations of, or
guarantees by, any bank or deposit or institution; and subject to investment
risks, including the possible loss of principal.
USAllianz products are issued by Allianz Life Insurance Company of North America
and distributed by its affiliate, USAllianz Investor Services, LLC, 5701 Golden
Hills Drive, Minneapolis, MN 55416-1297. Member NASD.
                                   Page x of y
Date                                                                     L30570


<PAGE>


                                                                           A-25

The "CASH SURRENDER VALUE" reflects all of the expenses and charges assessed
against "Contract value", and also reflects any CDSC if applicable. It does not
reflect the impact of premium taxes, income taxes or the 10% federal penalty tax
for withdrawals prior to age 59 1/2.

IMPORTANT CONSIDERATIONS: Past performance is not a guarantee of future results.
Investment returns and principal value will fluctuate with market conditions so
that units, when redeemed may be worth more or less than the original cost.

Product and features may not be available in all states. All product guarantees
are based on the claims paying ability of Allianz Life Insurance Company of
North America.

High yield securities inherently have a high degree of market risk in addition
to credit risk and potential illiquidity.

Index Investment Options seek to match the performance of specified market
indexes. Investors cannot invest directly into indexes.

Money invested in a specific sector or industry is subject to a higher degree of
risk than money that is diversified.

Small cap stocks may be more volatile than large cap or more established
companies' securities.

International investing involves some risks not presented with U.S. investments,
such as currency fluctuation and political volatility.

An investment in the Money Market fund is neither insured nor guaranteed by the
FDIC or any other governmental agency. Although the fund seeks to preserve your
$1.00 per share, it is possible to lose money in the fund.







































-------------------------------------------------------------------------------
This is a hypothetical variable annuity illustration, not a Contract, and is not
complete without all pages. The illustration can only be used when accompanied
or preceded by the Contract prospectus for the Valuemark(R) IV, a flexible
premium variable annuity. The prospectus contains more information, including
fees, expenses and risk factors, and should be read carefully before sending
money. All product guarantees are based on the claims paying ability of Allianz
Life Insurance Company of North America. Variable annuities are: not insured by
the FDIC or any other governmental agency; not deposits or obligations of, or
guarantees by, any bank or deposit or institution; and subject to investment
risks, including the possible loss of principal.
USAllianz products are issued by Allianz Life Insurance Company of North America
and distributed by its affiliate, USAllianz Investor Services, LLC, 5701 Golden
Hills Drive, Minneapolis, MN 55416-1297. Member NASD.
                                   Page x of y
Date                                                                    L30570


<PAGE>


                                                                           A-26

<TABLE>
<CAPTION>

                            USALLIAZ VALUEMARK(R) IV

PREPARED FOR                                                   CONTRACT INFORMATION FOR FEATURES SELECTED
John Doe                                                       Contract Type:   Non-Qualified

                                                               Guaranteed Minimum Income Benefit (GMIB):
PERIOD BEGINNING:
                                                               Guaranteed Minimum Death Benefit (GMDB):

                     STANDARDIZED AVERAGE ANNUAL RETURN AND
                        ADJUSTED INVESTMENT OPTION RETURN
 As of [12/31/2002], a one-time Purchase Paymentof $1,000 if withdrawn would
 have generated the following Standardized Average Annual Return, without regard
 to taxes:
                                                                           SINCE        DATE OF     SINCE    DATE OF
                                                                           PORTFOLIO  INVESTMENT  INVESTMENT SUB-ACCOUNT
                                                                                        OPTION     OPTION
INVESTMENT OPTION                              1 YEAR   5 YEAR    10 YEAR  INCEPTION    INCEPTION  INCEPTION  INCEPTION

<S>                                              <C>    <C>       <C>        <C>        <C>        <C>        <C>




</TABLE>

Standardized average annual return figures are calculated from the inception
date of the applicable Allianz Life Sub-Account. Figures reflect the deduction
of all Contract and Investment Option charges. Where there is a varying charge
depending upon which feature selected, the highest potential charge is shown.
The effect of the CDSC is reflected at the end of each period shown. Investment
Option returns prior to sub account inception have been adjusted for Contract
expenses.

Past performance is not a guarantee of future results.

    [THIS PAGE MUST ACCOMPANY ANY ACCUMULATION ILLUSTRATION CONTAINING ADJUSTED
HISTORICAL PERFORMANCE.]























-------------------------------------------------------------------------------
This is a hypothetical variable annuity illustration, not a Contract, and is not
complete without all pages. The illustration can only be used when accompanied
or preceded by the Contract prospectus for the Valuemark(R) IV, a flexible
premium variable annuity. The prospectus contains more information, including
fees, expenses and risk factors, and should be read carefully before sending
money. All product guarantees are based on the claims paying ability of Allianz
Life Insurance Company of North America. Variable annuities are: not insured by
the FDIC or any other governmental agency; not deposits or obligations of, or
guarantees by, any bank or deposit or institution; and subject to investment
risks, including the possible loss of principal.
USAllianz products are issued by Allianz Life Insurance Company of North America
and distributed by its affiliate, USAllianz Investor Services, LLC, 5701 Golden
Hills Drive, Minneapolis, MN 55416-1297. Member NASD.
                                   Page x of y
Date                                                                     L30570


<PAGE>


                                                                            A-27


                            USALLIAZ VALUEMARK(R) IV
<TABLE>
<CAPTION>

PREPARED FOR                                                   CONTRACT INFORMATION FOR FEATURES SELECTED
John Doe                                                       Contract Type:   Non-Qualified
                                                               Guaranteed Minimum Income Benefit (GMIB):
PERIOD BEGINNING:                                              Guaranteed Minimum Death Benefit (GMDB):

INVESTMENT OPTIONS SELECTED

____ Portfolio (___%)
____ Portfolio (___%)


                          EFFECT OF ADJUSTED HISTORICAL

                     RETURNS ON ILLUSTRATED CONTRACT VALUES


---------------- ------ ---------------------- ---------- --------------- ------------- --------------- ----------- ---------
---------------   AGE    ADJUSTED HISTORICAL   PURCHASEPAYWITHDRAWALS       CONTRACT         CASH          GMIB       GMDB
    END OF              AVERAGE ANNUAL RETURN                                VALUE        SURRENDER
     YEAR                                                                                   VALUE
---------------- ------ ---------------------- ---------- --------------- ------------- --------------- ----------- ---------

<S>               <C>           <C>             <C>           <C>         <C>            <C>          <C>
  Mm/dd/yyyy      45           Xx.xx%         $x,xxx.00     $(xxx.00)      $x,xxxx.00     $x,xxxx.00    $x,xxx.00

---------------- ------ --------------------- ----------- --------------- ------------- --------------- ----------- ---------

</TABLE>


This illustration is based upon adjusted historical returns during the period
indicated. Past performance is not a guarantee of future results. This
illustration is for illustrative purposes only and is no guarantee of return or
future performance.





















------------------------------------------------------------------------------
This is a hypothetical variable annuity illustration, not a Contract, and is not
complete without all pages. The illustration can only be used when accompanied
or preceded by the Contract prospectus for the Valuemark(R) IV, a flexible
premium variable annuity. The prospectus contains more information, including
fees, expenses and risk factors, and should be read carefully before sending
money. All product guarantees are based on the claims paying ability of Allianz
Life Insurance Company of North America. Variable annuities are: not insured by
the FDIC or any other governmental agency; not deposits or obligations of, or
guarantees by, any bank or deposit or institution; and subject to investment
risks, including the possible loss of principal.
USAllianz products are issued by Allianz Life Insurance Company of North America
and distributed by its affiliate, USAllianz Investor Services, LLC, 5701 Golden
Hills Drive, Minneapolis, MN 55416-1297. Member NASD.
                                   Page x of y
Date                                                                 L30570


<PAGE>


                                                                           A-28

<TABLE>
<CAPTION>

                            USALLIAZ VALUEMARK(R) IV

PREPARED FOR                                                   CONTRACT INFORMATION FOR FEATURES SELECTED
John Doe                                                       Contract Type:   Non-Qualified
                                                               Guaranteed Minimum Income Benefit (GMIB):
PERIOD BEGINNING:                                              Guaranteed Minimum Death Benefit (GMDB):

INVESTMENT OPTIONS SELECTED

____ Portfolio (___%)
____ Portfolio (___%)



                  ADJUSTED HISTORICAL INVESTMENT OPTION REPORT

                           FOR INVESTMENT OPTION NAME


-------------------- ------- ---------------- -------------- ----------------- --------------- -------------------

-------------------   AGE       ADJUSTED      PURCHASE         WITHDRAWALS       INVESTMENT
    END OF YEAR                HISTORICAL     PAYMENTS                         OPTION VALUE*
                             AVERAGE ANNUAL
                                 RETURN
-------------------- ------- ---------------- -------------- ----------------- --------------- -------------------

    <S>               <C>        <C>           <C>               <C>                <C>
    Mm/dd/yyyy         45        xx.xx%         $x,xxx.00       ($xxx.00)        $x,xxxx.00


-------------------- ------- ---------------- -------------- ----------------- --------------- -------------------
</TABLE>


*The term "Investment Option value" is an amount equal to the sum of each
Accumulation unit value multiplied by the number of Investment Option units.

This illustration is based upon adjusted historical returns during the period
indicated. Past performance is not a guarantee of future results. This
illustration is for illustrative purposes only and is no guarantee of return or
future performance.

















-------------------------------------------------------------------------------
This is a hypothetical variable annuity illustration, not a Contract, and is not
complete without all pages. The illustration can only be used when accompanied
or preceded by the Contract prospectus for the Valuemark(R) IV, a flexible
premium variable annuity. The prospectus contains more information, including
fees, expenses and risk factors, and should be read carefully before sending
money. All product guarantees are based on the claims paying ability of Allianz
Life Insurance Company of North America. Variable annuities are: not insured by
the FDIC or any other governmental agency; not deposits or obligations of, or
guarantees by, any bank or deposit or institution; and subject to investment
risks, including the possible loss of principal.
USAllianz products are issued by Allianz Life Insurance Company of North America
and distributed by its affiliate, USAllianz Investor Services, LLC, 5701 Golden
Hills Drive, Minneapolis, MN 55416-1297. Member NASD.
                                   Page x of y
Date                                                                      L30570


<PAGE>


                                                                          A-29


                            USALLIAZ VALUEMARK(R) IV
<TABLE>
<CAPTION>

PREPARED FOR                                                   CONTRACT INFORMATION FOR FEATURES SELECTED
John Doe                                                       Contract Type:   Non-Qualified
                                                               Guaranteed Minimum Income Benefit (GMIB):
PERIOD BEGINNING:                                              Guaranteed Minimum Death Benefit (GMDB):

INVESTMENT OPTIONS SELECTED

____ Portfolio (___%)
____ Portfolio (___%)
                     GUARANTEED MINIMUM DEATH BENEFIT REPORT


    ------------------- ------ --------------------- ------------------ ------------------- ------------------ -----------------

    ------------------   AGE   ADJUSTED HISTORICAL   PURCHASE PAYMENTS     WITHDRAWALS       CONTRACT VALUE          GMDB
     ANNIVERSARY YEAR             AVERAGE ANNUAL
                                      RETURN
    ------------------- ------ --------------------- ------------------ ------------------- ------------------ -----------------

        <S>               <C>          <C>                <C>               <C>                <C>               <C>
        Mm/dd/yyyy       45           xx.xx%              $xxx.00          ($x,xxxx.00)        $x,xxxx.00         $x,xxx.00

    ------------------- ------ --------------------- ------------------ ------------------- ------------------ -----------------

</TABLE>


This illustration is based upon adjusted historical returns during the period
indicated. Past performance is not a guarantee of future results. This
illustration is for illustrative purposes only and is no guarantee of return or
future performance.





























------------------------------------------------------------------------------
This is a hypothetical variable annuity illustration, not a Contract, and is not
complete without all pages. The illustration can only be used when accompanied
or preceded by the Contract prospectus for the Valuemark(R) IV, a flexible
premium variable annuity. The prospectus contains more information, including
fees, expenses and risk factors, and should be read carefully before sending
money. All product guarantees are based on the claims paying ability of Allianz
Life Insurance Company of North America. Variable annuities are: not insured by
the FDIC or any other governmental agency; not deposits or obligations of, or
guarantees by, any bank or deposit or institution; and subject to investment
risks, including the possible loss of principal.
USAllianz products are issued by Allianz Life Insurance Company of North America
and distributed by its affiliate, USAllianz Investor Services, LLC, 5701 Golden
Hills Drive, Minneapolis, MN 55416-1297. Member NASD.
                                   Page x of y
Date                                                                     L30570


<PAGE>


                                                                           A-30
<TABLE>
<CAPTION>


                            USALLIAZ VALUEMARK(R) IV

PREPARED FOR                                                   CONTRACT INFORMATION FOR FEATURES SELECTED
John Doe                                                       Contract Type:   Non-Qualified
                                                               Guaranteed Minimum Income Benefit (GMIB):
PERIOD BEGINNING:                                              Guaranteed Minimum Death Benefit (GMDB):
                                                               Annuity Option:
INVESTMENT OPTIONS SELECTED

____ Portfolio (___%)
____ Portfolio (___%)

                                      GUARANTEED MINIMUM INCOME BENEFIT REPORT



   ACCUMULATION PHASE                                                                                              PAYOUT PHASE


    ----------------- ------ ----------- ------------ ------------ ----------- -------------- ----------- -- ----------- -----------
    ----------------   AGE   ADJUSTED        NET       CONTRACT
    ANNIVERSARY YEAR         HISTORICAL   PURCHASE       VALUE      ANNUAL        MAXIMUM     GMIB            MONTHLY      ANNUAL
                             AVERAGE      PAYMENTS*                INCREASE     ANNIVERSARY
                             ANNUAL                                  AMOUNT        VALUE
                               RETURN
    ----------------- ------ ----------- ------------ ------------ ----------- -------------- ----------- -- ----------- -----------

        <S>            <C>       <C>         <C>        <C>         <C>           <C>            <C>         <C>          <C>
        Mm/dd/yyyy     45       xx.xx%      $xxx.00    $x,xxxx.00    $x,xxx.00   $x,xxx.00     $x,xxx.00      $x,xxx.00   $x,xxx.00
    ----------------- ------ ----------- ------------ ------------ ----------- ------------- ------------ -- ----------- ----------
</TABLE>

*The Net Purchase Paymentcolumn represents purchase payments minus withdrawals
in the accumulation phase.


This illustration is based upon adjusted historical returns during the period
indicated. Past performance is not a guarantee of future results. This
illustration is for illustrative purposes only and is no guarantee of return or
future performance.





















-------------------------------------------------------------------------------
This is a hypothetical variable annuity illustration, not a Contract, and is not
complete without all pages. The illustration can only be used when accompanied
or preceded by the Contract prospectus for the Valuemark(R) IV, a flexible
premium variable annuity. The prospectus contains more information, including
fees, expenses and risk factors, and should be read carefully before sending
money. All product guarantees are based on the claims paying ability of Allianz
Life Insurance Company of North America. Variable annuities are: not insured by
the FDIC or any other governmental agency; not deposits or obligations of, or
guarantees by, any bank or deposit or institution; and subject to investment
risks, including the possible loss of principal.
USAllianz products are issued by Allianz Life Insurance Company of North America
and distributed by its affiliate, USAllianz Investor Services, LLC, 5701 Golden
Hills Drive, Minneapolis, MN 55416-1297. Member NASD.
                                   Page x of y
Date                                                                     L30570


<PAGE>

                                                                            A-31
<TABLE>
<CAPTION>


                            USALLIAZ VALUEMARK(R) IV

PREPARED FOR                                                   CONTRACT INFORMATION FOR FEATURES SELECTED
John Doe                                                       Contract Type:   Non-Qualified
                                                               Guaranteed Minimum Income Benefit (GMIB):
PERIOD BEGINNING:                                              Guaranteed Minimum Death Benefit (GMDB):

                    ADJUSTED HISTORICAL DOLLAR COST AVERAGING
                                                                                                                  PERIOD
            INITIAL                  MONTHLY                    INITIAL                 ENDING
ENDING
            PURCHASE                 TRANSFER                 TRANSFER                  TRANSFER
VALUE
             PAYMENT                  PERIODS                   DATE                      DATE
DATE
           $50,000.00                   20                    05/01/1993             12/01/1994                 03/31/2001

                                                                                                                     WITHOUT
                                                                                                DOLLAR COST        DOLLAR COST
                                                   ALLOCATION      ALLOCATION     MONTHLY        AVERAGING          AVERAGING
          INVESTMENT OPTIONS                       PERCENTAGE        AMOUNT      TRANSFER      ENDING VALUE       ENDING VALUE
FROM :
<S>                                                 <C>             <C>              <C>           <C>             <C>
TO:

TOTAL                                               100%
</TABLE>



Dollar Cost Averaging involves continuous investing regardless of fluctuating
prices. The investor should consider his or her financial ability to continue
purchases through periods of low price levels. Dollar Cost Averaging does not
ensure a profit.

This report is based off your initial lump-sum Purchase Paymentonly, as
illustrated above. Future purchase payments are not taken into consideration.

Average annual returns for the Investment Options selected for the most recent
1, 5, and 10 year periods (computed as of the most recent calendar quarter) are
shown on another page of this illustration.

The Investment Options illustrated are based upon adjusted historical returns
during the period indicated. Any fixed rate returns illustrated are based upon
current returns.

 This illustration is based upon adjusted historical returns during the period
indicated. Past performance is not a guarantee of future results. This
illustration is for illustrative purposes only and is no guarantee of return or
future performance.











-------------------------------------------------------------------------------
This is a hypothetical variable annuity illustration, not a Contract, and is not
complete without all pages. The illustration can only be used when accompanied
or preceded by the Contract prospectus for the Valuemark(R) IV, a flexible
premium variable annuity. The prospectus contains more information, including
fees, expenses and risk factors, and should be read carefully before sending
money. All product guarantees are based on the claims paying ability of Allianz
Life Insurance Company of North America. Variable annuities are: not insured by
the FDIC or any other governmental agency; not deposits or obligations of, or
guarantees by, any bank or deposit or institution; and subject to investment
risks, including the possible loss of principal.
USAllianz products are issued by Allianz Life Insurance Company of North America
and distributed by its affiliate, USAllianz Investor Services, LLC, 5701 Golden
Hills Drive, Minneapolis, MN 55416-1297. Member NASD.
                                   Page x of y
Date                                                                     L30570


<PAGE>


                                                                            A-32

                          IMPORTANT DISCLOSURES
              HYPOTHETICAL VARIABLE AND/OR FIXED PAYOUT ILLUSTRATION

This illustration depicts how a payment option may work when you annuitize your
Contract. THIS ILLUSTRATION IS NOT A CONTRACT, AND IT IS NOT A REPRESENTATION OR
GUARANTEE OF FUTURE RETURNS OR OF ANY SPECIFIC PAYOUT AMOUNT.

 If you want to receive regular income from your annuity, you can choose an
 Annuity Option at any time after the 2nd Contract anniversary. You may elect to
 receive your Annuity Payments as a variable payout, a fixed payout, or a
 combination of both. If you choose to have any part of your payments come from
 the Variable Options, the dollar amount of your payments may go up or down
 based on the performance of the Investment Options.

The Contract provides that the Contract cannot be annuitized prior to 2 years
after the Contract issue date. For this reason, illustrations that you receive
will be based upon an annuity start date that is at least 2 years after the
issue date.

You can elect to have illustrated either a "variable" payout option or a "fixed"
payout option, or, you may elect to receive both a variable payout illustration
and a fixed payout illustration. THE "VARIABLE" PAYOUT OPTION ILLUSTRATION is
based upon actual historical performance of one or more Investment Options over
the specified period, as adjusted for all applicable Investment Option expenses
and applicable Contract expenses. The principal purpose of the variable payout
illustration is to demonstrate how the performance of the underlying Investment
Options could affect Contract values and payout amounts when the Contract is
annuitized. Investment returns and principal value will fluctuate with market
conditions so that units, when redeemed may be with more or less than the
original cost.

The illustration has not been adjusted for state or federal income tax
liability, 10% federal penalty tax for withdrawals prior to age 59 1/2, or any
applicable state premium taxes; values would be lower if such adjustments had
been made.

 This illustration may illustrate adjusted historical performance for one or
 more Investment Options. If more than one option is illustrated, performance
 may be shown as aggregate performance for all Investment Options selected. In
 addition, if you elect to illustrate more than one Investment Option and to
 hypothetically allocate more money to one option than to other options (for
 example, 50% to one option, 30% to a second option, and 20% to a third option),
 performance may be shown as weighted aggregate performance.

THE "FIXED" PAYOUT OPTION ILLUSTRATION is not based upon any sort of historical
performance, but rather is based upon fixed payout factors that are in effect on
the date of the illustration. These factors can change, up until the date you
annuitize your Contract.

 VARIABLE PAYOUT ANNUITY- Variable Annuity payouts depend on a variety of
 factors, including the amount annuitized, annuity payout option selected,
 assumed investment rate (AIR), and will vary with the investment performance of
 the portfolio(s) selected. The variable income can increase or decrease from
 the initial monthly payment and no minimum dollar amount of variable income is
 guaranteed. Actual investment results may be more or less than those reflected
 in the hypothetical rates of return and will depend on a number of factors,
 including the choice and investment experience of the eligible variable
 Investment Options.

The AIR was selected by your investment representative. The 3% AIR payments
start at a lower level than the 5% or 7% AIR, with the potential for more rapid
increase in payments during later years. Conversely if a 7% AIR is chosen there
is a potential for a more rapid decrease in payments during the later years. The
7% AIR is not available in the states of Oregon, Texas and New Jersey.

The value of a variable annuity will fluctuate up and down, based on the
performance of the underlying Investment Options, and the investor may
experience a gain or loss. Actual investment results may be more or less than
those shown on this illustration and will depend on a number of factors,
including the choice and investment experience of the variable Investment
Options.






--------------------------------------------------------------------------------
This is a hypothetical variable annuity illustration, not a Contract, and is not
complete without all pages. The illustration can only be used when accompanied
or preceded by the Contract prospectus for the Valuemark(R) IV, a flexible
premium variable annuity. The prospectus contains more information, including
fees, expenses and risk factors, and should be read carefully before sending
money. All product guarantees are based on the claims paying ability of Allianz
Life Insurance Company of North America. Variable annuities are: not insured by
the FDIC or any other governmental agency; not deposits or obligations of, or
guarantees by, any bank or deposit or institution; and subject to investment
risks, including the possible loss of principal.
USAllianz products are issued by Allianz Life Insurance Company of North America
and distributed by its affiliate, USAllianz Investor Services, LLC, 5701 Golden
Hills Drive, Minneapolis, MN 55416-1297. Member NASD.
                                   Page x of y
Date                                                                     L30570


<PAGE>


                                                                           A-33


 STANDARDIZED AVERAGE ANNUAL RETURN: Any variable payout illustration that is
 based upon adjusted historical performance is accompanied by Standardized
 Average Annual Return for each Investment Option depicted in the illustration.
 Standardized return is calculated using uniform guidelines as mandated by the
 Securities and Exchange Commission. Standardized return figures assume a
 one-time lump sum investment, and do not reflect the effect of taxation.
 Standardized return is shown for the most recent 1, 5, and 10 year periods, or
 from the inception date of the sub-account, if later. In contrast, illustration
 material may depict returns from the inception date of the applicable
 portfolio, if earlier than the inception date of the sub-account. Standardized
 return includes the effect of all portfolio expenses and all Contract expenses.
 If Contract expenses vary depending upon which features are selected,
 standardized return will reflect the highest potential expenses. In contrast,
 an illustration may reflect only certain expenses. Standardized return also
 assumes the assessment of a contingent deferred sales charge (CDSC) at the end
 of each applicable period. Standardized return is computed as of the most
 recent calendar quarter.

 FIXED PAYOUT ANNUITY- Fixed payments will depend on a variety of factors,
 including the amount annuitized, payout factor rates when the Contract is
 annuitized, date of birth, and annuity payout option selected. Fixed Annuity
 payouts, once commenced, will not vary.

COSTS AND EXPENSES: The Contract has insurance features and investment features,
and there are costs related to each.

Each year, Allianz Life deducts a $30 Contract maintenance charge from your
Contract. Allianz Life currently waives this charge if your Contract value is at
least $50,000.

Allianz Life deducts a mortality and expense risk charge which varies depending
upon your selection of the Guaranteed Minimum Income Benefit and the Guaranteed
Minimum Death Benefit (GMDB) options Allianz Life also deducts an administration
charge. This charge, together with the Contract maintenance charge, is for all
the expenses associated with the administration of the Contract. The table below
shows the combinations available to you and their Separate Account expenses
during the Accumulation Phase, as a percentage of the average daily value of the
Contract value allocated to the Variable Investment Options.
<TABLE>
<CAPTION>


                                                CHARGES FOR CONTRACT WITH              CHARGES FOR CONTRACT WITH
                                                         NO GMIB                            TRADITIONAL GMIB
                                                M&E      Admin.     Total                M&E     Admin.    Total
                                               CHARGE    CHARGE    CHARGE              CHARGE    CHARGE   CHARGE
<S>                                             <C>       <C>       <C>                 <C>      <C>       <C>
Traditional Guaranteed Minimum Death Benefit    1.60%     0.15%     1.75%               1.75%    0.15%     1.90%
Earnings Protection
      Guaranteed Minimum Death Benefit          1.90%     0.15%     2.05%               2.05%    0.15%     2.20%
Enhanced Guaranteed Minimum Death Benefit       1.90%     0.15%     2.05%               2.00%    0.15%     2.15%
</TABLE>

 The selection of the GMIB and GMDB must be made at the time of initial Purchase
 Payment. Once selected, they cannot be changed.

The GMIB guarantees that your Annuity Payments will be equal to the guaranteed
fixed payout rates applied to the GMIB value. We will use current fixed payout
rates applied to the Contract Value adjusted for any applicable MVA (less any
applicable premium tax) to calculate your Annuity Payments if that produces a
greater payment. However, if we do not use the GMIB value to calculate your
Annuity Payments you will incur higher Contract expenses without receiving any
explicit benefit from the GMIB option.

The GMIB is subject to a 7-year waiting period and your Contract must be
annuitized under one of the fixed Annuity Options 1-5. If you do not hold your
Contract for seven years before the Income Date, you cannot take advantage of
the GMIB benefit.

You can always annuitize your Contract Value (adjusted for any applicable MVA
less any applicable premium tax) two years or more after the Issue Date under a
fixed and/or variable Annuity Option. Some states may require a shorter period
of time.

The Traditional GMIB Value is equal to the total Purchase Payments adjusted for
partial withdrawals:




-------------------------------------------------------------------------------
This is a hypothetical variable annuity illustration, not a Contract, and is not
complete without all pages. The illustration can only be used when accompanied
or preceded by the Contract prospectus for the Valuemark(R) IV, a flexible
premium variable annuity. The prospectus contains more information, including
fees, expenses and risk factors, and should be read carefully before sending
money. All product guarantees are based on the claims paying ability of Allianz
Life Insurance Company of North America. Variable annuities are: not insured by
the FDIC or any other governmental agency; not deposits or obligations of, or
guarantees by, any bank or deposit or institution; and subject to investment
risks, including the possible loss of principal.
USAllianz products are issued by Allianz Life Insurance Company of North America
and distributed by its affiliate, USAllianz Investor Services, LLC, 5701 Golden
Hills Drive, Minneapolis, MN 55416-1297. Member NASD.
                                   Page x of y
Date                                                                     L30570


<PAGE>


                                                                            A-34


The Traditional GMDB guarantees the greater of the following, less any
applicable premium tax:
     oContract Value or
     ototal Purchase Payments adjusted for partial withdrawals.

The Enhanced GMDB guarantees the greater of the following, less any applicable
premium tax:
o Contract Value or
o The Enhanced Guaranteed Minimum Death Benefit which is equal to the greater
  of:
        o  total Purchase Payments adjusted for partial withdrawals increased
           by 3% on each Contract Anniversary prior to age 81 (maximum of 150%
           of purchase payments adjusted for partial withdrawals); or

        o  the maximum Contract Value on any Contract Anniversary plus
           subsequent additional Purchase Payments and minus subsequent
           adjusted partial withdrawals prior to age 81.

The EP GMDB guarantees the greater of 1, 2 or 3, less any applicable premium
tax:
1)   Contract Value;
2)   total Purchase Payments less adjusted partial withdrawals;
3)   Contract Value PLUS
     o If you are 69 or younger on the Issue Date, 50% of the lesser of (a) or
       (b),or
     o If you are 70 or older on the Issue Date, 35% of the lesser of (a) or (b)
     (a) Is the Contract Value minus total Purchase Payments.
     (b) Is three times the total Purchase Payments made in the first two
         Contract years.

If you take money out of the Contract, Allianz Life may assess a Contingent
Deferred Sales Charge (CDSC). The CDSC starts at 6% in the first year and
declines to 0% after we have had a purchase payment for 7 complete years. A
different charge applies to liquidations from the Period Certain Only annuity
option during the payout phase called a commutation fee.

There are also daily investment charges which currently range, on an annual
basis, from ______% to ______% of the average daily value of the Portfolio,
depending upon the Portfolio.


This illustration reflects the costs of all optional features you have selected.
It does not reflect costs associated with features you have not selected. If you
choose to add optional features, it will increase costs and reduce returns. Some
optional features must be selected at the issue date, and cannot be added once
the Contract is issued.


The "CONTRACT VALUE" for any point in time is an amount equal to the sum of each
Accumulation Unit Value multiplied by the number of Units allocated to the
Contract for each Investment Option. This value will fluctuate due to the
performance of the selected Investment Options. The Contract Value reflects all
Contract charges, and Investment Option expenses for the Contract features
selected but does not reflect the CDSC. It does not reflect the impact of
premium taxes, income taxes or the 10% federal penalty tax for withdrawals prior
to age 59 1/2.


The "CASH SURRENDER VALUE" reflects all of the expenses and charges assessed
against "Contract value", and also reflects any CDSC if applicable. It does not
reflect the impact of premium taxes, income taxes or the 10% federal penalty tax
for withdrawals prior to age 59 1/2.








-------------------------------------------------------------------------------
This is a hypothetical variable annuity illustration, not a Contract, and is not
complete without all pages. The illustration can only be used when accompanied
or preceded by the Contract prospectus for the Valuemark(R) IV, a flexible
premium variable annuity. The prospectus contains more information, including
fees, expenses and risk factors, and should be read carefully before sending
money. All product guarantees are based on the claims paying ability of Allianz
Life Insurance Company of North America. Variable annuities are: not insured by
the FDIC or any other governmental agency; not deposits or obligations of, or
guarantees by, any bank or deposit or institution; and subject to investment
risks, including the possible loss of principal.
USAllianz products are issued by Allianz Life Insurance Company of North America
and distributed by its affiliate, USAllianz Investor Services, LLC, 5701 Golden
Hills Drive, Minneapolis, MN 55416-1297. Member NASD.
                                   Page x of y
Date                                                                      L30570


<PAGE>


                                                                           A-35

IMPORTANT CONSIDERATIONS: Past performance is not a guarantee of future results.
Investment returns and principal value will fluctuate with market conditions so
that units, when redeemed may be worth more or less than the original cost.

Product and features may not be available in all states. All product guarantees
are based on the claims paying ability of Allianz Life Insurance Company of
North America.

High yield securities inherently have a high degree of market risk in addition
to credit risk and potential illiquidity.

Index Investment Options seek to match the performance of specified market
indexes. Investors cannot invest directly into indexes.

Money invested in a specific sector or industry is subject to a higher degree of
risk than money that is diversified.

Small cap stocks may be more volatile than large cap or more established
companies' securities.

International investing involves some risks not presented with U.S. investments,
such as currency fluctuation and political volatility.

An investment in the Money Market fund is neither insured nor guaranteed by the
FDIC or any other governmental agency. Although the fund seeks to preserve your
$1.00 per share, it is possible to lose money in the fund.


-------------------------------------------------------------------------------

                       STANDARDIZED AVERAGE ANNUAL RETURN
                      AND ADJUSTED INVESTMENT OPTION RETURN

 As of [12/31/2000], a one time Purchase Paymentof $1,000 if withdrawn would
 have generated the following Standardized Average Annual Return, taking into
 consideration all Contract charges but without regard to taxes:
<TABLE>
<CAPTION>

                                                                         SINCE       DATE OF      SINCE        DATE OF
                                                                         INVESTMENT INVESTMENT  SUB-ACCOUNT   SUB-ACCOUNT
                                                                         OPTION      OPTION
INVESTMENT OPTION                        1 YEAR    5 YEAR   10 YEARS     INCEPTION   INCEPTION    INCEPTION
INCEPTION

<S>                                     <C>        <C>      <C>             <C>          <C>         <C>       <C>


</TABLE>

Standardized average annual return figures are calculated from the inception
date of the applicable Allianz Life sub account. Figures reflect the deduction
of all Contract and Investment Option charges. Where there is a varying charge
depending upon which feature selected, the highest potential charge is shown.
The effect of the CDSC is reflected at the end of each period shown. Investment
Option returns prior to sub-account inception have been adjusted for Contract
expenses.

Past performance is not a guarantee of future results.

       [THIS PAGE MUST ACCOMPANY ANY PAYOUT ILLUSTRATION CONTAINING ADJUSTED
HISTORICAL INFORMATION.]











--------------------------------------------------------------------------------
This is a hypothetical variable annuity illustration, not a Contract, and is not
complete without all pages. The illustration can only be used when accompanied
or preceded by the Contract prospectus for the Valuemark(R) IV, a flexible
premium variable annuity. The prospectus contains more information, including
fees, expenses and risk factors, and should be read carefully before sending
money. All product guarantees are based on the claims paying ability of Allianz
Life Insurance Company of North America. Variable annuities are: not insured by
the FDIC or any other governmental agency; not deposits or obligations of, or
guarantees by, any bank or deposit or institution; and subject to investment
risks, including the possible loss of principal.
USAllianz products are issued by Allianz Life Insurance Company of North America
and distributed by its affiliate, USAllianz Investor Services, LLC, 5701 Golden
Hills Drive, Minneapolis, MN 55416-1297. Member NASD.
                                   Page x of y
Date                                                                    L30570


<PAGE>


                                                                           A-36

<TABLE>
<CAPTION>

                            USALLIAZ VALUEMARK(R) IV

PREPARED FOR                                                   CONTRACT INFORMATION FOR FEATURES SELECTED
John Doe                                                       Contract Type:   Non-Qualified
                                                               Guaranteed Minimum Income Benefit (GMIB):
PERIOD BEGINNING:                                              Guaranteed Minimum Death Benefit (GMDB):



                    HYPOTHETICAL VARIABLE PAYOUT ILLUSTRATION
                     BASED UPON ADJUSTED HISTORICAL RETURNS


ANNUITY OPTION: {NAME OF OPTION CHOSEN AND OTHER INFO IN THE GUI HERE}

Annuitization Age:                      65, Male                                                  Annuity Value:      520,097.92
Federal Tax Rate:                       28%
Assumed Interest Rate (AIR):            3.5%
Annuitization Date:                                                                                  Cost Basis:      500,000.00

  INVESTMENT OPTION                                  ALLOCATION    INVESTMENT OPTION                                    ALLOCATION
  ALGER AMERICAN GROWTH FUND                                90%     USALLIANZ STRATEGIC GROWTH FUND                          10%


   ------------------ ------------------ ----------------------- ------------------------ -------------------- ------------------
   -----------------     PAYOUT AGE          MONTHLY PAYOUT         EXCLUSION AMOUNT        TAXABLE AMOUNT     CUMULATIVE PAYOUT
     PERIOD ENDING
         DATE
     <S>                    <C>                 <C>                  <C>                    <C>                <C>

   ------------------ ------------------ ----------------------- ------------------------ -------------------- ------------------
</TABLE>

This illustration is based upon weighted aggregate historical returns during the
period indicated. Past performance is not a guarantee of future results. This
illustration is for illustrative purposes only and is no guarantee of return or
future performance.

Average annual returns for each of the Investment Options selected for the most
recent 1, 5, and 10 year periods (computed as of the most recent calendar
quarter) are shown on another page of this illustration.





--------------------------------------------------------------------------------
This is a hypothetical variable annuity illustration, not a Contract, and is not
complete without all pages. The illustration can only be used when accompanied
or preceded by the Contract prospectus for the Valuemark(R) IV, a flexible
premium variable annuity. The prospectus contains more information, including
fees, expenses and risk factors, and should be read carefully before sending
money. All product guarantees are based on the claims paying ability of Allianz
Life Insurance Company of North America. Variable annuities are: not insured by
the FDIC or any other governmental agency; not deposits or obligations of, or
guarantees by, any bank or deposit or institution; and subject to investment
risks, including the possible loss of principal.
USAllianz products are issued by Allianz Life Insurance Company of North America
and distributed by its affiliate, USAllianz Investor Services, LLC, 5701 Golden
Hills Drive, Minneapolis, MN 55416-1297. Member NASD.
                                   Page x of y
Date                                                                     L30570


<PAGE>






APPENDIX-B
--------------------------------------------------------------------------------



[TO BE UPDATED UPON AMENDMENT]

CONDENSED FINANCIAL INFORMATION
The consolidated financial statements of Allianz Life Insurance Company of North
America and the financial statements of Allianz Life Variable Account B are
found in this Statement of Additional Information.

Accumulation Unit Value (AUV) information corresponding to the highest and
lowest combination of charges is reflected in the Appendix to the Prospectus.
AUV information reflecting the additional combination of charges is listed
below.

This information should be read in conjunction with the financial statements and
related notes of the Separate Account included in this Statement of Additional
Information.
<TABLE>
<CAPTION>

(NUMBER OF UNITS IN THOUSANDS)                                                                  CONTRACT WITH GMIB AND
                                                    STANDARD CONTRACT AND                    5% INCREASE/6 YEAR STEP UP OR
                                                  EARNINGS PROTECTION GMDB                    GREATEST ANNIVERSARY VALUE
                                                            1.59%                                        1.79%

INVESTMENT OPTIONS:                         INCEPTION (11/05/01) TO DEC. 31, 2001        INCEPTION (11/05/01) TO DEC. 31, 2001
------------------------------------------------------------------------------------------------------------

USAZ ALLIANCE CAPITAL GROWTH AND INCOME

<S>                                                            <C>                                          <C>
Unit value at beginning of period                                   NA                                           NA

Unit value at end of period                                    $10.440                                      $10.436

Number of units outstanding at end of period                         0                                            0
------------------------------------------------------------------------------------------------------------

USAZ ALLIANCE CAPITAL LARGE CAP GROWTH

Unit value at beginning of period                                   NA                                           NA

Unit value at end of period                                    $10.523                                      $10.520

Number of units outstanding at end of period                         0                                            0
------------------------------------------------------------------------------------------------------------

USAZ ALLIANCE CAPITAL TECHNOLOGY

Unit value at beginning of period                                   NA                                           NA

Unit value at end of period                                    $10.742                                      $10.739

Number of units outstanding at end of period                         0                                            0
------------------------------------------------------------------------------------------------------------

FRANKLIN GLOBAL COMMUNICATIONS SECURITIES

Unit value at beginning of period                                   NA                                           NA

Unit value at end of period                                    $17.548                                      $17.105

Number of units outstanding at end of period                         0                                            0
------------------------------------------------------------------------------------------------------------

FRANKLIN GROWTH AND INCOME SECURITIES

Unit value at beginning of period                                   NA                                           NA

Unit value at end of period                                    $28.688                                      $27.964

Number of units outstanding at end of period                         0                                            2
------------------------------------------------------------------------------------------------------------

FRANKLIN HIGH INCOME

Unit value at beginning of period                                   NA                                           NA

Unit value at end of period                                    $17.991                                      $17.537

Number of units outstanding at end of period                         0                                            1
------------------------------------------------------------------------------------------------------------

FRANKLIN INCOME SECURITIES

Unit value at beginning of period                                   NA                                           NA

Unit value at end of period                                    $27.918                                      $27.214

Number of units outstanding at end of period                         0                                            1
------------------------------------------------------------------------------------------------------------

FRANKLIN LARGE CAP GROWTH SECURITIES

Unit value at beginning of period                                   NA                                           NA

Unit value at end of period                                    $18.252                                      $18.046

Number of units outstanding at end of period                         0                                            0
------------------------------------------------------------------------------------------------------------

FRANKLIN REAL ESTATE

Unit value at beginning of period                                   NA                                           NA

Unit value at end of period                                    $28.972                                      $28.241

Number of units outstanding at end of period                         0                                            0
------------------------------------------------------------------------------------------------------------

FRANKLIN RISING DIVIDENDS SECURITIES

Unit value at beginning of period                                   NA                                           NA

Unit value at end of period                                    $24.796                                      $24.312

Number of units outstanding at end of period                         0                                            0
------------------------------------------------------------------------------------------------------------

FRANKLIN SMALL CAP

Unit value at beginning of period                                   NA                                           NA

Unit value at end of period                                    $19.775                                      $19.533

Number of units outstanding at end of period                         0                                            1
------------------------------------------------------------------------------------------------------------

FRANKLIN SMALL CAP VALUE SECURITIES

Unit value at beginning of period                                   NA                                           NA

Unit value at end of period                                    $10.683                                      $10.605

Number of units outstanding at end of period                         0                                            0
------------------------------------------------------------------------------------------------------------

FRANKLIN U.S. GOVERNMENT

Unit value at beginning of period                                   NA                                           NA

Unit value at end of period                                    $21.212                                      $20.676

Number of units outstanding at end of period                         0                                            1
------------------------------------------------------------------------------------------------------------

FRANKLIN ZERO COUPON 2005

Unit value at beginning of period                                   NA                                           NA

Unit value at end of period                                    $27.004                                      $26.322

Number of units outstanding at end of period                         0                                            0
------------------------------------------------------------------------------------------------------------

FRANKLIN ZERO COUPON 2010

Unit value at beginning of period                                   NA                                           NA

Unit value at end of period                                    $28.756                                      $28.030

Number of units outstanding at end of period                         0                                            0
------------------------------------------------------------------------------------------------------------

MUTUAL DISCOVERY SECURITIES

Unit value at beginning of period                                   NA                                           NA

Unit value at end of period                                    $14.627                                      $14.478

Number of units outstanding at end of period                         0                                            0
------------------------------------------------------------------------------------------------------------

MUTUAL SHARES SECURITIES

Unit value at beginning of period                                   NA                                           NA

Unit value at end of period                                    $15.539                                      $15.380

Number of units outstanding at end of period                         0                                            4
------------------------------------------------------------------------------------------------------------

TEMPLETON DEVELOPING MARKETS SECURITIES

Unit value at beginning of period                                   NA                                           NA

Unit value at end of period                                     $7.566                                       $7.449

Number of units outstanding at end of period                         0                                            0
------------------------------------------------------------------------------------------------------------

TEMPLETON FOREIGN SECURITIES

Unit value at beginning of period                                   NA                                           NA

Unit value at end of period                                    $17.599                                      $17.255

Number of units outstanding at end of period                         0                                            1
------------------------------------------------------------------------------------------------------------
TEMPLETON GROWTH SECURITIES

Unit value at beginning of period                                   NA                                           NA

Unit value at end of period                                    $18.786                                      $18.495

Number of units outstanding at end of period                         0                                            1
------------------------------------------------------------------------------------------------------------

USAZ TEMPLETON DEVELOPED MARKETS

Unit value at beginning of period                                   NA                                           NA

Unit value at end of period                                    $10.224                                      $10.220

Number of units outstanding at end of period                         0                                            0
------------------------------------------------------------------------------------------------------------

SP JENNISON INTERNATIONAL GROWTH

Unit value at beginning of period                                   NA                                           NA

Unit value at end of period                                     $5.350                                       $5.339

Number of units outstanding at end of period                         0                                            1
------------------------------------------------------------------------------------------------------------

SP JENNISON STRATEGIC PARTNERS FOCUSED GROWTH

Unit value at beginning of period                                   NA                                           NA

Unit value at end of period                                     $6.592                                       $6.579

Number of units outstanding at end of period                         0                                            0
------------------------------------------------------------------------------------------------------------

PIMCO VIT HIGH YIELD BOND

Unit value at beginning of period                                   NA                                           NA

Unit value at end of period                                     $9.904                                       $9.867

Number of units outstanding at end of period                         0                                            0
------------------------------------------------------------------------------------------------------------

PIMCO VIT STOCKSPLUS GROWTH AND INCOME

Unit value at beginning of period                                   NA                                           NA

Unit value at end of period                                     $8.236                                       $8.205

Number of units outstanding at end of period                         0                                            0
------------------------------------------------------------------------------------------------------------

PIMCO VIT TOTAL RETURN BOND

Unit value at beginning of period                                   NA                                           NA

Unit value at end of period                                    $11.677                                      $11.632

Number of units outstanding at end of period                         0                                            0
------------------------------------------------------------------------------------------------------------

USAZ PIMCO GROWTH AND INCOME

Unit value at beginning of period                                   NA                                           NA

Unit value at end of period                                    $10.137                                      $10.134

Number of units outstanding at end of period                         0                                            0
------------------------------------------------------------------------------------------------------------

USAZ PIMCO RENAISSANCE

Unit value at beginning of period                                   NA                                           NA

Unit value at end of period                                    $10.992                                      $10.988

Number of units outstanding at end of period                         0                                            0
------------------------------------------------------------------------------------------------------------

USAZ PIMCO VALUE

Unit value at beginning of period                                   NA                                           NA

Unit value at end of period                                    $10.935                                      $10.931

Number of units outstanding at end of period                         0                                            0
------------------------------------------------------------------------------------------------------------

USAZ MONEY MARKET

Unit value at beginning of period                                   NA                                           NA

Unit value at end of period                                    $10.541                                      $10.501

Number of units outstanding at end of period                         0                                            1
------------------------------------------------------------------------------------------------------------

USAZ VAN KAMPEN AGGRESSIVE GROWTH

Unit value at beginning of period                                   NA                                           NA

Unit value at end of period                                     $8.014                                       $8.003

Number of units outstanding at end of period                         0                                            0
------------------------------------------------------------------------------------------------------------

USAZ VAN KAMPEN COMSTOCK

Unit value at beginning of period                                   NA                                           NA

Unit value at end of period                                     $9.318                                       $9.306

Number of units outstanding at end of period                         0                                            0
------------------------------------------------------------------------------------------------------------

USAZ VAN KAMPEN EMERGING GROWTH

Unit value at beginning of period                                   NA                                           NA

Unit value at end of period                                     $9.122                                       $9.110

Number of units outstanding at end of period                         0                                            0
------------------------------------------------------------------------------------------------------------

USAZ VAN KAMPEN GROWTH AND INCOME

Unit value at beginning of period                                   NA                                           NA

Unit value at end of period                                     $9.655                                       $9.642

Number of units outstanding at end of period                         0                                            0
------------------------------------------------------------------------------------------------------------

USAZ VAN KAMPEN GROWTH

Unit value at beginning of period                                   NA                                           NA

Unit value at end of period                                     $9.508                                       $9.495

Number of units outstanding at end of period                         0                                            0
------------------------------------------------------------------------------------------------------------
</TABLE>



There are no  accumulation  units shown for the USAZ AIM Basic Value Fund,  USAZ
AIM  Blue  Chip  Fund,  USAZ  AIM  Dent   Demographic   Trends  Fund,  USAZ  AIM
International  Equity  Fund,  Davis  VA  Financial  Portfolio,  Davis  VA  Value
Portfolio,  Dreyfus  Small Cap Stock  Index  Fund,  Dreyfus  Stock  Index  Fund,
Oppenheimer  Global  Securities   Fund/VA,   Oppenheimer  High  Income  Fund/VA,
Oppenheimer  Main Street  Growth & Income  Fund/VA,  USAZ  Oppenheimer  Emerging
Growth Fund and the Seligman  Small-Cap Value  Portfolio  because they commenced
operations under this Contract as of May 1, 2002.



<PAGE>

                                     PART C
                                OTHER INFORMATION

Item 24.  Financial Statements and Exhibits

      a.  Financial Statements ( to be filed by amendment)



      b. Exhibits

      1.   Resolution of Board of Directors of the Company authorizing the
           establishment  of  the  Variable  Account(1)
      2.   Not  Applicable
      3.a. Principal  Underwriter's  Agreement(2)
      3.b. General Agency Agreement (4)
      4.   Individual  Variable  Annuity  Contract(1)
      4.a. Waiver  of  Contingent  Deferred  Sales  Charge  Endorsement(1)
      4.b. Enhanced  Death  Benefit  Endorsement(1)
      5.   Application  for  Individual  Variable  Annuity  Contract(1)
      6.   (i)    Copy  of  Articles  of  Incorporation of the Company(1)
           (ii)  Copy  of  the  Bylaws  of  the  Company(1)
      7.   Not  Applicable
      8.a. Form of Fund Participation Agreement between AIM Variable
           Insurance Funds, Inc., Allianz Life Insurance Company of North
           America and NALAC Financial Plans LLC(3)
        b. Form of Fund Participation Agreement between USAllianz Variable
           Insurance Products Trust, Allianz Life Insurance Company of
           North America and BISYS Fund Services Limited Partnership(3)
        c. Form of Fund Participation Agreement between The Prudential Series
           Fund, Inc., The Prudential Insurance Company of America, Prudential
           Investment Management Services LLC and Allianz Life Insurance
           Company of North America (5)
        d. Form of Fund Participation Agreement between Franklin Templeton
           Variable Insurance Products Trust, Templeton Variable Products Series
           Fund, Franklin Templeton Distributors, Inc., and Allianz Life
           Insurance Company of North America.(7)
        e. Form of Fund Participation Agreement between Van Kampen Life
           Investment Trust, Van Kampen Funds, Inc., Van Kampen Asset
           Management Inc. and Allianz Life Insurance Company of North
           America(6)
        f. Form of Fund Participation Agreement between Van Kampen Life
           Investment Trust, Van Kampen Funds Inc, Van Kampen Asset Management
           and Allianz Life of North America (9)
        g. Form of Fund Participation Agreement between Van Kampen Funds, Inc.,
           and USAllianz Investor Services, LLC (9)
        h. Portfolio Management Agreement between USAllianz Advisers,
           LLC, USAllianz Variable Insurance Products Trust, and Van Kampen
           Asset Management, Inc. (9)
        i. Portfolio Management Agreement between USAllianz Advisers,
           LLC, USAllianz Variable Insurance Products Trust, and Van Kampen
           Investment Advisory Corporation. (9)
        j. Portfolio Management Agreement between USAllianz Advisers,
           LLC, USAllianz Variable Insurance Products Trust and Van Kampen Asset
           Management, Inc. (9)
        k. Portfolio Management Agreement between USAllianz Advisers,
           LLC, USAllianz Variable Insurance Products Trust, and Alliance
           Capital Management L.P. (9)
        l. Portfolio Management Agreement between USAllianz Advisers,
           LLC, USAllianz Variable Insurance Products Trust, and PIMCO
           Advisers L.P. (9)
        m. Portfolio Management Agreement between USAllianz Advisers,
           LLC, USAllianz Variable Insurance Products Trust and Templeton
           Investment Counsel,LLC. (9)
        n. Form of Fund Participation Agreement between Davis Variable Account
           Fund, Inc., Davis Distributors, LLC and Allianz Life Insurance
           Company of North America (8)
        o. Form of Fund Participation Agreement between Oppenheimer Variable
            Account Funds, Oppenheimer Funds Inc. and Allianz Life Insurance
           Company of North America (8)
        p. Form of Fund Participation Agreement between Seligman Portfolios,
           Inc. and Allianz Life Insurance Company of North America (8)
        q. Form of Fund Participation Agreement between Dreyfus Investment
           Portfolios and Allianz Life Insurance Company of North America (10)
       9.   Opinion  and  Consent  of  Counsel ( to be filed by amendment)
      10.   Independent  Auditors'  Consent (to be filed by amendment)
      11.   Not  Applicable
      12.   Not  Applicable
      13.   Calculation  of  Performance  Data (10)
14. Company  Organizational  Chart (4)
15. Powers Of Attorney (11)


(1)  Incorporated by reference to Registrant's Form N-4 electronically  filed on
     June 24, 1996.
(2)  Incorporated by reference to Pre-Effective Amendment No. 1 to Registrant's
     form N-4 electronically filed on December 13, 1996.
(3)  Incorporated by reference to Registrant's Form N-4 (File Nos. 333-06709 and
     811-05618) electronically filed on November 12, 1999.
(4)  Incorporated by reference to Registrant's Form N-4 (File Nos. 333-06709 and
     811-05618) electronically filed on April 27, 2000.
(5)  Incorporated by reference to Post-Effective Amendment No. 2 to Registrant's
     Form N-4 (File Nos. 333-82329 and 811-05618) electronically filed on
     December 15, 2000.
(6)  Incorporated by reference to Registrant's Form N-4 (File Nos. 333-82329 and
     811-05618) electronically filed on December 29, 1999.
(7)  Incorporated by reference to Post-Effective Amendment No.18 to Registrant's
     Form N-4 (File Nos. 333-06709 and 811-05618) electronically filed on
     April 26, 2001.
(8)  Incorporated by reference to Registrant's Form N-4 (File Nos. 333-82329 and
     811-05618) electronically filed on December 29, 1999.
(9)  Incorporated by reference to Post-Effective Amendment No.20 to Registrant's
     Form N-4 (File Nos. 333-06709 and 811-05618) electronically filed on
     November 1, 2001.
(10) Incorporated by reference to Post-Effective Amendment No.21 to Registrant's
     Form N-4 (File Nos. 333-06709 and 811-05618) electronically filed on
     April 24, 2002.
(11) Incorporated by reference to Post-Effective Amendment No.22 to Registrant's
     Form N-4 (Filed Nos. 333-06709 and 811-05618) electronically filed on
     August 29, 2002.

Item  25.        Directors  and  Officers  of  the  Depositor

The following are the Officers and Directors of the Insurance Company:

<TABLE>
<CAPTION>

Name and Principal              Positions and Offices
Business Address                with Depositor
------------------------------  ---------------------------------

<S>                             <C>
Robert W. MacDonald             Chairman of the Board
5701 Golden Hills Drive
Minneapolis, MN 55416

Mark A. Zesbaugh                Chief Executive Officer and
5701 Golden Hills Drive         Director
Minneapolis, MN 55416

Gabrielle Matzdorff             Sr. Vice President and
5701 Golden Hills Drive         Chief Financial Officer
Minneapolis, MN 55416

Denise Blizil                   Senior Vice President -
5701 Golden Hills Drive         Chief Administrative Officer
Minneapolis, MN 55416

Charles Kavitsky                President -
5701 Golden Hills Drive         Chief Marketing Officer
Minneapolis, MN 55416

Suzanne Pepin                   Senior Vice President -
5701 Golden Hills Drive         Chief Legal Officer
Minneapolis, MN 55416

Neil McKay                      Senior Vice President -
5701 Golden Hills Drive         Chief Actuary
Minneapolis, MN 55416

Paul M Saffert                  Director
Allianz of America Corp.
777 San Marin Drive
Novato, CA 94998

Michael Diekmann                Director
Allianz AG
Koeniginstrausse 28
D-80802
Munich, Germany

Michael P. Sullivan             Director
7505 Metro Boulevard
Minneapolis, MN 55439

Dr. Gerhard Rupprecht           Director
Reinsburgstrasse 19
D-70178
Stuttgart, Germany

Rev. Dennis Dease               Director
c/o University of St. Thomas
215 Summit Avenue
St. Paul, MN 55105-1096

James R. Campbell               Director
c/o Wells Fargo and Company
Wells Fargo Center
Sixth & Marquette
Minneapolis, MN 55479-0116

Robert M. Kimmitt               Director
Commerce One, Inc.
4440 Rosewood Drive
Pleasanton, CA 94588-3050

</TABLE>


Item  26.   Persons Controlled by or Under Common Control with the Depositor
            or  Registrant

The Insurance Company organizational chart was filed as Exhibit 14 (File
Nos. 333-06709 and 811-05618) in Post-Effective Amendment No. 24 filed
April 27, 2000 and is incorporated herein by reference.

Item  27.        Number  of  Contract  Owners

As of January 31, 2003 there were 7,377 qualified Contract Owners and 16,493
non-qualified Contract Owners with Contracts in the separate account

Item  28.        Indemnification

The Bylaws of the Insurance Company provide that:

Each person (and the heirs,  executors,  and administrators of such person) made
or threatened to be made a party to any action, civil or criminal,  by reason of
being or having been a Director,  officer, or employee of the corporation (or by
reason of serving  any other  organization  at the  request of the  corporation)
shall  be  indemnified  to the  extent  permitted  by the  laws of the  State of
Minnesota, and in the manner prescribed therein.

Insofar as  indemnification  for liability  arising under the  Securities Act of
1933 may be permitted for directors and officers or  controlling  persons of the
Insurance Company pursuant to the foregoing, or otherwise, the Insurance Company
has been advised that in the opinion of the Securities  and Exchange  Commission
such  indemnification  is against  public  policy as  expressed  in the Act and,
therefore,  unenforceable. In the event that a claim for indemnification against
such  liabilities  (other than the payment by the Insurance  Company of expenses
incurred or paid by a director,  officer or controlling  person of the Insurance
Company in the successful defense of any action, suit or proceeding) is asserted
by  such  director,  officer  or  controlling  person  in  connection  with  the
securities  being  registered,  the Company  will,  unless in the opinion of its
counsel the matter has been settled by controlling precedent,  submit to a court
of appropriate  jurisdiction the question whether such  indemnification by it is
against  public policy as expressed in the Act and will be governed by the final
adjudication of such issue.

Item  29.        Principal  Underwriters


    a.  USAllianz Investor Services, LLC is  the  principal underwriter for the
        Contracts. It  also  is  the principal  underwriter  for:

                          Allianz  Life  Variable  Account  A
                          Allianz  Life of NY Variable Account  C

     b.  The following are the officers(managers) and directors (Board of
Governors) of USAllianz Investor Services, LLC:

<TABLE>
<CAPTION>
                        Positions and Offices
Business Address        with Underwriter

----------------------  ----------------------

<S>                        <C>
Christopher H.Pinkerton    Chairman, Chief Executive Officer, President,
5701 Golden Hills Drive    Chief Manager & Director
Minneapolis, MN 55416

Tracy H. Gardner           Chief Administrative Officer &
5701 Golden Hills Drive    Sr. Vice President
Minneapolis, MN 55416

Michael M. Ahles           Chief Financial Officer & Sr. Vice President
5701 Golden Hills Drive
Minneapolis, MN  55416

Catherine Q. Farley        Sr. Vice President
5701 Golden Hills Drive
Minneapolis, MN  55416

Cynthia M. Robeck          Vice President
5701 Golden Hills Drive
Minneapolis, MN  55416

Jennifer J. Wagner         Vice President
5701 Golden Hills Drive
Minneapolis, MN  55416

Keith L. Johnson           Sr. Vice President
5701 Golden Hills Drive
Minneapolis, MN  55416

Carol B.Shaw               Sr. Vice President
5701 Golden Hills Drive
Minneapolis, MN  55416

Corey J. Walther           Sr. Vice President
5701 Golden Hills Drive
Minneapolis, MN  55416

Dave Schliesman            Sr. Vice President
5701 Golden Hills Drive
Minneapolis, MN  55416

Jeffrey W. Kletti          Vice President
5701 Golden Hills Drive
Minneapolis, MN  55416

Myron Rothstein            Vice President
5701 Golden Hills Drive
Minneapolis, MN  55416

Patrick Allen              Divisional VP - NE
5701 Golden Hills Drive
Minneapolis, MN  55416

Edward Barrett             Divisional VP - SE
5701 Golden Hills Drive
Minneapolis, MN  55416

Kevin Rooney               Divisional VP - MID
5701 Golden Hills Drive
Minneapolis, MN  55416

Gerald Boucher             Divisional VP - W
5701 Golden Hills Drive
Minneapolis, MN  55416

Chris Johnston             Divisional VP - Wirehouse
5701 Golden Hills Drive
Minneapolis, MN  55416

Wayne Peterson             Compliance Officer
5701 Golden Hills Drive
Minneapolis, MN  55416

Stewart Gregg              Secretary
5701 Golden Hills Drive
Minneapolis, MN  55416

Jan Witort                 Assistant Secretary
5701 Golden Hills Drive
Minneapolis, MN  55416


</TABLE>

     c. Not Applicable

Item  30.        Location  of  Accounts  and  Records

Michael Ahles, whose address is 5701 Golden Hills Drive, Minneapolis,  Minnesota
55416 and Delaware Valley  Financial  Services,  USAllianz  Service Center,  300
Berwyn Park, Berwyn,  Pennsylvania  19312,  maintain physical  possession of the
accounts,  books or documents of the Variable  Account required to be maintained
by Section  31(a) of the  Investment  Company Act of 1940,  as amended,  and the
rules promulgated thereunder.

Item  31.        Management  Services

Not  Applicable

Item  32.        Undertakings

   a. Registrant  hereby  undertakes to file a post-effective  amendment to this
registration  statement as frequently as is necessary to ensure that the audited
financial  statements in the registration  statement are never more than sixteen
(16) months old for so long as payment under the variable annuity  contracts may
be accepted.

   b.  Registrant  hereby  undertakes  to  include  either  (1) as  part  of any
application to purchase a contract  offered by the  Prospectus,  a space that an
applicant can check to request a Statement of Additional  Information,  or (2) a
postcard  or  similar  written  communication  affixed  to or  included  in  the
Prospectus  that the  applicant can remove to send for a Statement of Additional
Information.

   c.  Registrant  hereby  undertakes  to deliver any  Statement  of  Additional
Information  and any financial  statements  required to be made available  under
this Form promptly upon written or oral request.


                             REPRESENTATIONS

Allianz Life Insurance  Company of North America  ("Company")  hereby represents
that  the  fees  and  charges  deducted  under  the  Contract  described  in the
Prospectus,  in the  aggregate,  are  reasonable  in  relation  to the  services
rendered, the expenses to be incurred and the risks assumed by the Company.

The  Insurance  Company  hereby  represents  that it is relying upon a No Action
Letter issued to the American Council of Life Insurance, dated November 28, 1988
(Commission ref. IP-6-88),  and that the following provisions have been complied
with:

   1.  Include  appropriate  disclosure  regarding the redemption restrictions
imposed  by  Section  403(b)(11) in each registration statement, including the
prospectus,  used  in  connection  with  the  offer  of  the  contract;

   2.  Include  appropriate  disclosure  regarding the redemption restrictions
imposed  by Section 403(b)(11) in any sales literature used in connection with
the  offer  of  the  contract;

   3.  Instruct sales representatives who solicit participants to purchase the
contract  specifically to bring the redemption restrictions imposed by Section
403(b)(11)  to  the  attention  of  the  potential  participants;

   4. Obtain from each plan  participant  who purchases a Section 403(b) annuity
contract,  prior  to or at  the  time  of  such  purchase,  a  signed  statement
acknowledging  the  participant's  understanding  of  (1)  the  restrictions  on
redemption imposed by Section 403(b)(11),  and (2) other investment alternatives
available  under  the  employer's   Section  403(b)  arrangement  to  which  the
participant may elect to transfer his contract value.


                              SIGNATURES


As  required by the  Securities  Act of 1933 and the  Investment  Company Act of
1940, as amended,  the Registrant certifies that it has caused this Registration
Statement  to be signed on its  behalf in the City of  Minneapolis  and State of
Minnesota, on this 10th day of February, 2003.

                                         ALLIANZ  LIFE
                                         VARIABLE  ACCOUNT  B
                                         (Registrant)


                                         By:  ALLIANZ  LIFE  INSURANCE COMPANY
                                             OF  NORTH  AMERICA
                                                 (Depositor)




                                         By:/s/  STEWART GREGG
                                            --------------------------------
                                                 Senior Counsel



                                         ALLIANZ  LIFE  INSURANCE  COMPANY
                                         OF  NORTH  AMERICA
                                          (Depositor)




                                          By:/s/  STEWART GREGG
                                             ------------------------------
                                                  Senior Counsel






Pursuant to the  requirements of the Securities Act of 1933,  this  registration
statement has been signed by the following  persons in the capacities and on the
dates indicated.

Signature  and  Title

<TABLE>
<CAPTION>
<S>                        <C>                                       <C>
Robert W. MacDonald*       Chairman of the Board                     02/10/2003
Robert W. MacDonald

Mark A. Zesbaugh*          Director and Chief Executive Officer      02/10/2003
Mark A. Zesbaugh

Michael P. Sullivan*       Director                                  02/10/2003
Michael P. Sullivan

Dr. Gerhard Rupprecht*     Director                                  02/10/2003
Dr. Gerhard Rupprecht

Rev. Dennis J. Dease*      Director                                  02/10/2003
Rev. Dennis J. Dease

James R. Campbell*         Director                                  02/10/2003
James R. Campbell

Robert M. Kimmitt*         Director                                  02/10/2003
Robert M. Kimmitt

Michael Diekmann*          Director                                  02/10/2003
Michael Diekmann

Paul M Saffert*            Director                                  02/10/2003
Paul M Saffert

Gabrielle Matzdorff*       Sr. Vice President and                    02/10/2003
Gabrielle Matzdorff        Chief Financial Officer

Charles Kavitsky*          President and                             02/10/2003
Charles Kavitsky           Chief Marketing Officer

Denise Blizil*             Sr. Vice President and                    02/10/2003
Denise Blizil              Chief Administrative Officer


</TABLE>


                                         *By    Power  of  Attorney



                                          By:  /s/ STEWART GREGG
                                              --------------------------------
                                              Stewart Gregg
                                              Attorney-in-Fact






<PAGE>

                                    EXHIBITS

                                       TO

                        POST-EFFECTIVE AMENDMENT NO. 24

                                       TO

                                   FORM N-4

                         ALLIANZ LIFE VARIABLE ACCOUNT B

               ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA



                                INDEX TO EXHIBITS



EXHIBIT


EX-99.B9     Opinion and Consent of Counsel ( to be filed by amendment)

EX-99.B10    Independent Auditors' Consent  ( to be filed by amendment)