| N-4/A                                                           | File Nos. 333-180720               |
|-----------------------------------------------------------------|------------------------------------|
| Allianz Retirement Advantage                                    | 811-05618                          |
|                                                            | UNITED STATES                      |   |
|                                                            | SECURITIES AND EXCHANGE COMMISSION |   |
|                                                            | WASHINGTON, D.C. 20549             |   |
|                                                            | FORM N-4                           |   |
|                                                            |                               |   |
| REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933         |                               |
| Pre-Effective Amendment No.                                     | 1                                  |   | X |
| Post-Effective Amendment No.                                    |                               |   |   |
| and/or                                                          |                               |
| REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 |                               |
| Amendment No.                                                   | 344                                |   | 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 55416-1297             |
| (Address of Depositor's Principal Executive Offices) (Zip Code) |
|                                                            |
| (763) 765-2913                                                  |
| (Depositor's Telephone Number, including Area Code)             |
|                                                            |
| Stewart D. Gregg, Senior Securities Counsel                     |
| Allianz Life Insurance Company of North America                 |
| 5701 Golden Hills Drive                                         |
| Minneapolis, MN 55416-1297                                      |
| (Name and Address of Agent for Service)                         |
|                                                            |
| Approximate Date of the Proposed Public Offering: July 30, 2012 |
|                                                            |

| Titles of Securities Being Registered:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | Individual Flexible Purchase Payment Variable Deferred Annuity Contract |
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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| The Registrant hereby amends this  Registration  Statement on such date or dates as may be necessary to delay its effective date until the Registrant  shall file a further amendment which specifically  states that this Registration  Statement shall thereafter  become  effective  in  accordance  with  Section  8(a) of the Securities  Act of  1933  or  until  the  Registration Statement  shall  become effective on such date as the Commission,  acting pursuant to said Section 8(a), may determine. |

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|   | PART A – PROSPECTUS |
|--------|---------------------------|

|   | THE ALLIANZ RETIREMENT ADVANTAGE SM VARIABLE ANNUITY CONTRACT ISSUED BY ALLIANZ LIFE® VARIABLE ACCOUNT B AND ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Investment Options:         | Available with:                                    |
|-----------------------------|----------------------------------------------------|
| All Investment Options      | Portfolio Choice Account                           |
| Investment Options with a * | Heritage Account and Retirement Protection Account |

| ALLIANZ FUND OF FUNDSAZL FusionSM Balanced FundAZL FusionSM Conservative FundAZL FusionSM Growth FundAZL FusionSM Moderate FundALLIANZ GLOBAL INVESTORS CAPITALAZL® Allianz AGIC Opportunity FundBLACKROCKAZL® BlackRock Capital Appreciation FundAZL® International Index Fund*AZL® Mid Cap Index Fund*AZL® Money Market Fund*AZL® Russell 1000 Growth Index Fund*AZL® Russell 1000 Value Index Fund*AZL® S&P 500 Index FundAZL® Small Cap Stock Index Fund*BlackRock Equity Dividend V.I. FundBlackRock Global Allocation V.I. Fund*COLUMBIAAZL® Columbia Mid Cap Value FundAZL® Columbia Small Cap Value FundDAVISAZL® Davis New York Venture FundDREYFUSAZL® Dreyfus Research Growth FundDreyfus VIF Appreciation PortfolioEATON VANCEAZL® Eaton Vance Large Cap Value FundEaton Vance VT Floating-Rate Income FundFEDERATEDAZL® Federated Clover Small Value FundFIDELITY MANAGEMENT & RESEARCH COMPANYFidelity VIP Emerging Markets PortfolioFidelity VIP Mid Cap PortfolioFidelity VIP Strategic Income Portfolio | FRANKLIN TEMPLETONAZL® Franklin Templeton Founding Strategy Plus FundFranklin High Income Securities Fund*Franklin Income Securities FundFranklin Rising Dividends Securities FundFranklin Strategic Income Securities FundFranklin Templeton VIP Founding Funds Allocation FundFranklin U.S. Government Fund*Mutual Shares Securities FundTempleton Global Bond Securities Fund*Templeton Growth Securities FundGATEWAYAZL® Gateway Fund*INVESCOAZL® Invesco Equity and Income FundAZL® Invesco Growth and Income FundAZL® Invesco International Equity FundInvesco V.I. Balanced-Risk Allocation FundInvesco Van Kampen V.I. American Value FundJ.P. MORGANAZL® JPMorgan International Opportunities FundAZL® JPMorgan U.S. Equity FundJPMorgan Insurance Trust Core Bond PortfolioLAZARDLazard Retirement International Equity PortfolioLazard Retirement U.S. Small-Mid Cap Equity PortfolioLEGG MASONLegg Mason ClearBridge Variable Aggressive Growth PortfolioLegg Mason Dynamic Multi-Strategy VIT PortfolioMFSAZL® MFS Investors Trust FundMFS VIT II International Value PortfolioMFS VIT Research Bond PortfolioMFS VIT Utilities Portfolio | MORGAN STANLEYAZL® Morgan Stanley Global Real Estate Fund*AZL® Morgan Stanley Mid Cap Growth FundNFJAZL® NFJ International Value FundOPPENHEIMER FUNDSAZL® Oppenheimer Discovery FundOppenheimer International Growth Fund/VAPIMCOPIMCO EqS Pathfinder PortfolioPIMCO VIT All Asset PortfolioPIMCO VIT CommodityRealReturn® Strategy Portfolio*PIMCO VIT Emerging Markets Bond Portfolio*PIMCO VIT Global Bond Portfolio (Unhedged)*PIMCO VIT Global Multi-Asset Portfolio*PIMCO VIT High Yield Portfolio*PIMCO VIT Low Duration PortfolioPIMCO VIT Real Return Portfolio*PIMCO VIT Total Return Portfolio*PIMCO VIT Unconstrained Bond Portfolio*PYRAMISAZL® Pyramis® Core Bond FundSCHRODERAZL® Schroder Emerging Markets Equity Fund*T. ROWE PRICET. Rowe Price Blue Chip Growth PortfolioT. Rowe Price Equity Income PortfolioT. Rowe Price Health Sciences PortfolioWADDELL & REED INVESTMENT MANAGEMENT COMPANYIvy Funds VIP Asset Strategy PortfolioIvy Funds VIP Energy PortfolioIvy Funds VIP Global Natural Resources PortfolioIvy Funds VIP Growth PortfolioIvy Funds VIP Mid Cap Growth PortfolioIvy Funds VIP Science and Technology Portfolio |
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|   | TABLE OF CONTENTS |
|--------|-------------------|

| Glossary   | 4                                                    |   | Premium Tax                                           | 36                                                 |
|------------|------------------------------------------------------|--------|-------------------------------------------------------|----------------------------------------------------|
| Fee Tables | 7                                                    |   | Income Tax                                            | 36                                                 |
|       | Owner Transaction Expenses                           | 7      |                                                  | Investment Option Expenses                         | 36 |
|       | Owner Periodic Expenses                              | 7      | 9.                                                    | Access to Your Money                               | 36 |
|       | Contract Annual Expenses                             | 7      |                                                  | Systematic Withdrawal Program                      | 37 |
|       | Annual Operating Expenses of the Investment Options  | 7      |                                                  | The Minimum Distribution Program and Required      |   |
|       | Examples                                             | 8      |                                                  | Minimum Distribution (RMD) Payments                | 37 |
| 1.         | The Variable Annuity Contract                        | 9      |                                                  | Suspension of Payments or Transfers                | 38 |
|       | State Specific Contract Restrictions                 | 10     | 10.                                                   | Lifetime Income Payments                           | 38 |
|       | When The Contract Ends                               | 10     |                                                  | Lifetime Income Payment Overview                   | 38 |
| 2.         | Comparing the Portfolio Choice Account, Heritage     |   |                                                  | Benefit Base                                       | 39 |
|       | Account and Retirement Protection Account            | 11     |                                                  | Quarterly Anniversary Value                        | 39 |
| 3.         | Ownership, Annuitants, Covered Persons,              |   |                                                  | Requesting Lifetime Income Payments                | 40 |
|       | and Payees                                           | 12     |                                                  | Calculating Your Lifetime Income Payments          | 41 |
|       | Owner                                                | 14     |                                                  | Automatic Annual Lifetime Income Payment Increases | 42 |
|       | Joint Owners                                         | 14     |                                                  | Taxation of Lifetime Income Payments               | 43 |
|       | Annuitant                                            | 14     |                                                  | When the Income Phase Ends                         | 43 |
|       | Beneficiary                                          | 14     | 11.                                                   | The Annuity Phase                                  | 43 |
|       | Covered Person(s)                                    | 15     |                                                  | Calculating Your Annuity Payments                  | 44 |
|       | Payee                                                | 16     |                                                  | Annuity Payment Options                            | 44 |
|       | Assignment, Changes of Ownership and                 |   |                                                  | When Annuity Payments Begin                        | 45 |
|       | OtherTransfers of a Contract                         | 16     | 12.                                                   | Death Benefit                                      | 45 |
| 4.         | Purchasing the Contract                              | 16     |                                                  | Heritage Death Benefit                             | 46 |
|       | Purchase Payments                                    | 16     |                                                  | Quarterly Value Death Benefit                      | 46 |
|       | Allocation of Purchase Payments and                  |   |                                                  | Death of the Owner and/or Annuitant                | 47 |
|       | Transferred Account Values                           | 17     |                                                  | Death Benefit Payment Options During the           |   |
|       | Heritage Account and Retirement Protection Account   |   |                                                  | Accumulation and Income Phases                     | 47 |
|       | Investment Option Allocation Restrictions and        |   | 13.                                                   | Taxes                                              | 47 |
|       | Quarterly Rebalancing                                | 18     |                                                  | Qualified and Non-Qualified Contracts              | 47 |
|       | Automatic Investment Plan (AIP)                      | 19     |                                                  | Taxation of Annuity Contracts                      | 48 |
|       | Dollar Cost Averaging (DCA) Program                  | 19     |                                                  | Tax-Free Section 1035 Exchanges                    | 49 |
|       | Faxed Applications                                   | 20     | 14.                                                   | Other Information                                  | 49 |
|       | Free Look/Right-to-Examine Period                    | 20     |                                                  | Allianz Life                                       | 49 |
| 5.         | Valuing Your Contract                                | 20     |                                                  | The Separate Account                               | 49 |
|       | Accumulation Units                                   | 20     |                                                  | Distribution                                       | 49 |
|       | Computing the Contract Value and Account Values      | 21     |                                                  | Additional Credits for Certain Groups              | 50 |
| 6.         | Investment Options                                   | 21     |                                                  | Administration/Allianz Service Center              | 51 |
|       | Substitution and Limitation on Further Investments   | 29     |                                                  | Legal Proceedings                                  | 51 |
|       | Transfers Between Investment Options                 | 30     |                                                  | Financial Statements                               | 51 |
|       | Electronic Investment Option Transfer and            |   |                                                  | Status Pursuant to Securities Exchange Act of 1934 | 51 |
|       | Allocation Instructions                              | 30     | 15.                                                   | Privacy and Security Statement                     | 52 |
|       | Excessive Trading and Market Timing                  | 31     | 16.                                                   | Table of Contents of the Statement of Additional   |   |
|       | Flexible Rebalancing Program                         | 32     |                                                  | Information (SAI)                                  | 53 |
|       | Financial Advisers – Asset Allocation Programs | 33     |                                                  |                                               |   |
|       | Voting Privileges                                    | 33     | Appendix A – Annual Operating Expenses for      |                                               |
| 7.         | Our General Account                                  | 33     |                                                  | Each Investment Option                             | 54 |
| 8.         | Expenses                                             | 33     | Appendix B – Effects of Partial Withdrawals and |                                               |
|       | Portfolion Choice Account Fee                        | 34     |                                                  | Transfers on the Values Available Under the        |   |
|       | Heritage Account Fee                                 | 34     |                                                  | Retirement Protection Account                      | 57 |
|       | Retirement Protection Account Fee                    | 34     |                                                  |                                               |
|       | Contract Maintenance Charge                          | 35     | For Service or More Information                       | 58                                                 |
|       | Transfer Fee                                         | 36     |                                                  | Addresses for mailing checks                       | 58 |

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|   | GLOSSARY |
|--------|----------|

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|   | FEE TABLES |
|--------|------------|

| Sales/withdrawal charge ……………………….                           | None   |
|--------------------------------------------------------------------------------------------------------------------|--------|
| Transfer Fee(1) …………………………………… | $25    |
| (for each transfer after twelve in a Contract Year)                                                                |   |
| Premium Tax(2) ……………………………………  | 3.5%   |
| (as a percentage of each Purchase Payment)                                                                         |   |

| Contract Maintenance Charge(3) ……………… | $75    |
|---------------------------------------------------------------------------|--------|
| (per Contract per year)                                                   |   |

|                                                                                                                     | Portfolio Choice Account | Heritage Account | Retirement Protection Account |
|--------------------------------------------------------------------------------------------------------------------------|--------------------------|------------------|-------------------------------|
|                                                                                                                     | Maximum                  | Current(5)       | Maximum                       | Current(5) |   |
| Portfolio Choice Account Fee(as a percentage of each Portfolio Choice Account Investment Options’ net asset value) | 0.30%                    |             |                          |   |   |   |
| Heritage Account Fee(as a percentage of the Heritage Base)                                                               |                     | 1.75%            | 0.80%                         |   |   |   |
| Retirement Protection Account Fee(as a percentage of the Benefit Base)                                                   |                     |             |                          |   |   |   |
| Single Lifetime Income Payments                                                                                          |                     |             |                          | 1.75% | 1.00% |   |
| Joint Lifetime Income Payments                                                                                           |                     |             |                          | 1.75% | 1.15% |   |

|                                                                                                                                                                         | Minimum | Maximum |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|---------|
| Total annual Investment Option operating expenses(6)(including management fees, distribution or 12b-1 fees, and other expenses)before fee waivers and expense reimbursements | 0.52%   | 1.70%   |

| (1) | We count all transfers made in the same Business Day as one transfer. Automatic program and Account related transfers, and transfers between the same Investment Option in the two Accounts are not subject to the transfer fee and do not count against the free transfers we allow as discussed in section 8, Expenses – Transfer Fee. Transfers are subject to the market timing policies discussed in section 6, Investment Options – Excessive Trading and Market Timing. |
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| (2) | Not currently deducted, but we reserve the right to do so in the future. This is the maximum charge we could deduct if we exercise this right as discussed in section 8, Expenses – Premium Tax. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Waived if the Contract Value is at least $100,000 as discussed in section 8, Expenses – Contract Maintenance Charge. |
|-----|----------------------------------------------------------------------------------------------------------------------------|

| (4) | Account fees only apply when you make allocations to that Account. For example, if you do not allocate to the Retirement Protection Account or move all money from an Account, you will not pay the Retirement Protection Account fee. |
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| (5) | The current Heritage Account fee and Retirement Protection Account fee may increase or decrease on each Quarterly Anniversary as discussed in section 8, Expenses. |
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| (6) | Some of the Investment Options or their affiliates may also pay service fees to us or our affiliates. Amounts may be different for each Investment Option. The maximum current fee is 0.25%. If these fees are deducted from Investment Option assets, they are reflected in the above table and disclosed in Appendix A. Appendix A contains annual operating expense details for each Investment Option. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | 1) | If you surrender your Contract (take a full withdrawal) at the end of each time period. |
|--------|----|-----------------------------------------------------------------------------------------|

| Total annual Investment Option operating expensesbefore any fee waivers or expense reimbursements of: | 1 Year | 3 Years                | 5 Years | 10 Years |
|-------------------------------------------------------------------------------------------------------|--------|------------------------|---------|----------|
| 1.70% (the maximum Investment Option operating expense)                                               | $422   | $1,273                 | $2,135  | $4,342   |
| 0.52% (the minimum Investment Option operating expense)                                               | $304   | $   927 | $1,568  | $3,259   |

|   | 2) | If you apply your Contract’s total investment value (Contract Value) to Annuity Payments at the end of each time period. The earliest available date Annuity Payments can begin (Annuity Date) is one year after the date we issue the Contract (Issue Date) for Florida, and two years after the Issue Date in all other states. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Total annual Investment Option operating expensesbefore any fee waivers or expense reimbursements of: | 1 Year | 3 Years                | 5 Years | 10 Years |
|-------------------------------------------------------------------------------------------------------|--------|------------------------|---------|----------|
| 1.70% (the maximum Investment Option operating expense)                                               | $422   | $1,273                 | $2,135  | $4,342   |
| 0.52% (the minimum Investment Option operating expense)                                               | $304   | $   927 | $1,568  | $3,259   |

|   | 3) | If you do not surrender your Contract. |
|--------|----|----------------------------------------|

| Total annual Investment Option operating expensesbefore any fee waivers or expense reimbursements of: | 1 Year | 3 Years                | 5 Years | 10 Years |
|-------------------------------------------------------------------------------------------------------|--------|------------------------|---------|----------|
| 1.70% (the maximum Investment Option operating expense)                                               | $422   | $1,273                 | $2,135  | $4,342   |
| 0.52% (the minimum Investment Option operating expense)                                               | $304   | $   927 | $1,568  | $3,259   |

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| 1. | THE VARIABLE ANNUITY CONTRACT |
|----|-------------------------------|

| ● | The principal focus of the Portfolio Choice Account is investment performance. The Account offers the most investment flexibility of the three Accounts, and permits more aggressive investing. The Account offers the largest number of Investment Options, and does not have any asset allocation restrictions. The Portfolio Choice Account has the lowest fee of the three Accounts. It does not have any guaranteed values. The Portfolio Choice Account is designed for persons interested in maximizing investment return potential |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ● | The Heritage Account offers fewer Investment Options than the Portfolio Choice Account and has a higher fee, but offers a traditional guaranteed death benefit called the Heritage Death Benefit. The Heritage Death Benefit is calculated based on allocations to the Heritage Account adjusted for withdrawals and transfers out of the Account. The Heritage Account is subject to both asset allocation restrictions and quarterly rebalancing. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ● | The Retirement Protection Account offers the most protection, but has restrictions on Investment Options and has the highest fee. The Account offers both guaranteed lifetime income withdrawals called Lifetime Income Payments and an enhanced guaranteed death benefit called the Quarterly Value Death Benefit. Lifetime Income Payments are calculated based upon a Benefit Base, as described in this prospectus. The Quarterly Value Death Benefit is calculated based on the Quarterly Anniversary Value, as described in this prospectus. The Retirement Protection Account has the same Investment Options, asset allocation restrictions and quarterly rebalancing as the Heritage Account. The guarantee offered by the Quarterly Value Death Benefit is equal to or greater than the guarantee offered by the Heritage Death Benefit. |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| · | Availability of Investment Options, Annuity Options, endorsements, and/or riders. |
|--------|-----------------------------------------------------------------------------------|

| · | Free look rights. |
|--------|-------------------|

| · | Selection of certain Annuity Dates. |
|--------|-------------------------------------|

| · | Restrictions on your ability to make additional Purchase Payments. |
|--------|--------------------------------------------------------------------|

| · | Our ability to restrict transfer rights. |
|--------|------------------------------------------|

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| · | For the Retirement Protection Account only, the Business Day all Covered Persons no longer have the required relationship (Owner, Annuitant or sole Beneficiary) as stated in section 3, Ownership, Annuitants, Covered Persons, and Payees. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | For the Retirement Protection Account only, the Business Day we receive your request in Good Order at our Service Center to begin Lifetime Income Payments (the Benefit Election Date). |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | For all Accounts, the Business Day before the Annuity Date that you annuitize the total Portfolio Choice Account Value (or total Heritage Account Value, as applicable). |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | For all Accounts, the Business Day we process your request for a full withdrawal of the total Contract Value. |
|--------|---------------------------------------------------------------------------------------------------------------|

| · | For all Accounts, upon the death of any Owner (or the Annuitant if the Contract is owned by a non-individual), the end of the Business Day we first receive a Valid Claim from any one Beneficiary, unless the surviving spouse continues the Contract. For non-spouse Joint Owners, this means Lifetime Income Payments will not be available to you even if the sole Covered Person is still alive. Covered Person(s) are the individuals upon whose lives we base Lifetime Income Payments. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | all applicable phases of the Contract (Accumulation Phase, Income Phase, and/or Annuity Phase) have ended, and/or |
|--------|-------------------------------------------------------------------------------------------------------------------|

| · | all applicable death benefit payments have been made. |
|--------|-------------------------------------------------------|

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| 2. | COMPARING THE PORTFOLIO CHOICE ACCOUNT, HERITAGE ACCOUNT AND RETIREMENT PROTECTION ACCOUNT |
|----|--------------------------------------------------------------------------------------------|

| Primary Differences Between the Accounts                                                                                                                     |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                         | Portfolio Choice Account | Heritage Account | Retirement Protection Account |
| What are the Account features?                                                                                                                               | Focus is performance. It offers the most Investment Options without allocation restrictions for the lowest fee. Does not have either a guaranteed death benefit or guaranteed lifetime withdrawals. | It offers a guaranteed death benefit (Heritage Death Benefit) at a moderate fee. It has fewer Investment Options and is subject to both asset allocation restrictions and quarterly rebalancing. | It offers the most protection for the highest fee. It has both guaranteed lifetime withdrawals (Lifetime Income Payments) and a guaranteed death benefit (Quarterly Value Death Benefit) that cannot be less than the Heritage Death Benefit, but may be equal. It has the same Investment Options, asset allocation restrictions and quarterly rebalancing as the Heritage Account. |
| Are there withdrawal charges?                                                                                                                                | No. | No. | No. |
| What are the current Account fees?(See section 8, Expenses)                                                                                                  | The Portfolio Choice Account fee is 0.30% calculated and assessed as a percentage of the Portfolio Choice Account Investment Options’ net asset value. | The Heritage Account fee is 0.80% of the Heritage Base. | The current Retirement Protection Account fee for single Lifetime Income Payments is 1.00% of the Benefit Base, and for joint  it is 1.15%. |
| Can the Account fees change?                                                                                                                                 | No. | On each Quarterly Anniversary the Heritage Account fee can increase up to a maximum of 1.75% or it can decrease to as low as 0.25%. However, we cannot increase or decrease the fee more than 0.25% in any twelve-month period. Quarterly Anniversaries occur three calendar months after the Issue Date or any subsequent Quarterly Anniversary. | On each Quarterly Anniversary the Retirement Protection Account fee can increase up to a maximum of 1.75% or it can decrease to as low as 0.25%. However, we cannot increase or decrease the fee more than 0.25% in any twelve-month period. |
| Are there restrictions on additional Purchase Payments?(See section 4, Purchasing the Contract –Purchase Payments.)                                    | Not allowed after the earlier of the Benefit Election Date, or the 81st birthday of the older Covered Person or older Owner (or Annuitant if the Owner is a non-individual). | Same as the Portfolio Choice Account. | Same as the Portfolio Choice Account. |
| Are there restrictions on Account transfers?(See section 4, Purchasing the Contract – Allocation of Purchase Payments and Transferred Account Values.) | You cannot transfer out of the Portfolio Choice Account and you can only transfer in the total Retirement Protection Account Value after the earlier of the Benefit Election Date, or the 81st birthday of the older Covered Person or older Owner (or Annuitant if the Owner is a non-individual). | You cannot transfer out of the Heritage Account and you can only transfer in the total Retirement Protection Account Value after the earlier of the Benefit Election Date, or 81st birthday of the older Covered Person or older Owner (or Annuitant if the Owner is a non-individual). | You cannot transfer into the Retirement Protection Account and you can only transfer out the total Retirement Protection Account Value after the earlier of the Benefit Election Date, or 81st birthday of the older Covered Person or older Owner (or Annuitant if the Owner is a non-individual). |

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| Primary Differences Between the Accounts                                                                                                                                                                                                     |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                         | Portfolio Choice Account | Heritage Account | Retirement Protection Account |
| Are there Account specific Investment Option allocation restrictions?(See section 4, Purchasing the Contract – Heritage Account and Retirement Protection Account Investment Option Allocation Restrictions and Quarterly Rebalancing) | No. | We divided the available Investment Options into three groups and restrict the amount of Heritage Account Value you can allocate to each group. We rebalance your Heritage Account Value quarterly according to your future Purchase Payment allocation instructions. | We divided the available Investment Options into three groups and restrict the amount of Retirement Protection Account Value you can allocate to each group. We rebalance your Retirement Protection Account Value quarterly according to your future Purchase Payment allocation instructions. |
| Are there guaranteed values?(See section 10, Lifetime Income Payments – The Benefit Base, and section 12, Death Benefit.)                                                                                                              | No. | The guaranteed value is the Heritage Base, which is available upon your death to the person you designate (your Beneficiary). It is equal to Purchase Payment allocations and transfers into the Heritage Account adjusted for withdrawals and transfers out of the Heritage Account. Withdrawals and transfers out of the Heritage Account may reduce the Heritage Base by significantly more than the amount taken. | The guaranteed value is the Benefit Base used to determine Lifetime Income Payments and the Quarterly Anniversary Value used to determine the Quarterly Value Death Benefit. Before payments begin both values are equal to the Quarterly Anniversary Value (highest quarterly Retirement Protection Account Value adjusted for subsequent Purchase Payments, withdrawals and transfers). Withdrawals and transfers out of the Retirement Protection Account may reduce the Benefit Base and Quarterly Anniversary Value by significantly more than the amount taken. |
| What kind of payouts are available?(See section 9, Access to Your Money; section 10, Lifetime Income Payments; section 11, The Annuity Phase; and section 12, Death Benefit.)                                                                | The Portfolio Choice Account Value is available to you by taking withdrawals or Annuity Payments, and it is available to your Beneficiary(s) upon your death. Your entire Contract Value must be in the Portfolio Choice Account before Annuity Payments begin. Annuitization ends the Retirement Protection Account and any Lifetime Income Payments. | The Heritage Account Value is available to you by taking withdrawals or Annuity Payments. Upon your death, your Beneficiary(s) receive the greater of the Heritage Account Value or Heritage Base. Your entire Contract Value must be in the Heritage Account before Annuity Payments begin. Annuitization ends the Retirement Protection Account and any Lifetime Income Payments. | The Retirement Protection Account Value is available to you by taking withdrawals. This Account also provides guaranteed lifetime withdrawals through Lifetime Income Payments, and a guaranteed Quarterly Value Death Benefit to your Beneficiary(s) upon your death. Lifetime Income Payments can begin as early as age 65 or as late as age 90. If you do not begin payments during this eligibility period, you will have incurred higher Contract charges without receiving the benefit of a lifetime payment stream, although you will still have access to the Quarterly Value Death Benefit. |

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| 3. | OWNERSHIP, ANNUITANTS, COVERED PERSONS, AND PAYEES |
|----|----------------------------------------------------|

| UPON THE DEATH OF A SOLE OWNER                     |
|----------------------------------------------------|
| Action if the Contract is inthe Accumulation Phase | Action if the Contract is in the Annuity Phase |
| ·                                             | We pay a death benefit to the Beneficiary unless the surviving spouse continues the Contract. If the surviving spouse continues the Contract, they become the new Owner and the Accumulation Phase continues for the remainder of their lifetime. | ·· | The Beneficiary becomes the Owner.If the deceased was not an Annuitant, Annuity Payments to the Payee continue. No death benefit is payable. |
| ·                                             | If the deceased was the only surviving Annuitant, Annuity Payments end or continue as follows.–Annuity Option 1  or 3, payments end.–Annuity Option 2 or 4, payments end when the guarantee period ends.–Annuity Option 5,  payments end and the Payee may receive a lump sum refund. |
| ·                                             | If the deceased was an Annuitant and there is a surviving joint Annuitant, Annuity Payments to the Payee continue during the lifetime of the surviving joint Annuitant. No death benefit is payable. |

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| · | solely owned Contracts, the Covered Person is the Owner. |
|--------|----------------------------------------------------------|

| · | jointly owned Contracts, you can choose which Owner is the Covered Person. |
|--------|----------------------------------------------------------------------------|

| · | Contracts owned by a non-individual, the Covered Person is the Annuitant. |
|--------|---------------------------------------------------------------------------|

|   | For joint Lifetime Income Payments, Covered Persons must be spouses and: |
|--------|--------------------------------------------------------------------------|

| · | Non-Qualified Contracts: |
|--------|--------------------------|

|   | – | spouses must be Joint Owners; or |
|--------|---------|----------------------------------|

|   | – | one spouse must be the sole Owner and Annuitant and the other spouse must be the sole primary Beneficiary. |
|--------|---------|------------------------------------------------------------------------------------------------------------|

| · | Qualified Contracts: |
|--------|----------------------|

|   | – | one spouse must be the sole Owner and Annuitant and the other spouse must be the sole primary Beneficiary; or |
|--------|---------|---------------------------------------------------------------------------------------------------------------|

|   | – | if the Owner is a qualified plan or a custodian, then one spouse must be the Annuitant and the other spouse must be the sole contingent Beneficiary because we also require the qualified plan or custodian to be the sole primary Beneficiary. This structure allows the surviving non-Annuitant spouse to continue to receive lifetime payments. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| * | Or on the next Business Day if the Contract Anniversary or Benefit Anniversary is not a Business Day. |
|---|-------------------------------------------------------------------------------------------------------|

|   | NOTE: |
|--------|-------|

| · | A person no longer qualifies as a Covered Person and is removed from the Contract if that person is no longer an Owner, Joint Owner, Annuitant, sole primary Beneficiary, or sole contingent Beneficiary as required here. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | For non-spouse Joint Owners selecting single Lifetime Income Payments: Upon the death of any Owner, we pay any applicable death benefit, the Accumulation Phase ends, and if the Retirement Protection Account Value is positive, any Lifetime Income Payments and the Income Phase end. This means that upon an Owner’s death, Lifetime Income Payments are no longer available even if the sole Covered Person is still alive. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 4. | PURCHASING THE CONTRACT |
|----|-------------------------|

| · | The minimum initial Purchase Payment due on the Issue Date is $75,000. |
|--------|------------------------------------------------------------------------|

| · | We only accept additional Purchase Payments to the Contract before the earlier of the Annuity Date, Benefit Election Date, or the 81st birthday of the older Covered Person or older Owner (or Annuitant if the Owner is a non-individual). Additional Purchase Payments must be $50 or more. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The maximum total Purchase Payments we accept without our prior approval is $1 million including amounts already invested in other Allianz Life Retirement Advantage variable annuities. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| * | In Florida and Maryland, we can decline any Purchase Payment that is more than $1 million. |
|---|--------------------------------------------------------------------------------------------|

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| · | make additional Purchase Payments, or |
|--------|---------------------------------------|

| · | transfer Account Value into the Retirement Protection Account, and you can only transfer out the total Retirement Protection Account Value. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------|

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| · | you cannot allocate more than 15% of your Account Value to Investment Option Group 1. |
|--------|---------------------------------------------------------------------------------------|

| · | you cannot allocate more than 50% of your Account Value to Investment Option Group 1 and 2. |
|--------|---------------------------------------------------------------------------------------------|

| · | you must allocate at least 50% of your Account Value to Investment Option Group 3. |
|--------|------------------------------------------------------------------------------------|

| Group 1 Investment Options                                                                                                                                     |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------|
| AZL Morgan Stanley Global Real Estate FundAZL Schroder Emerging Markets Equity FundAZL Small Cap Stock Index Fund                                              | PIMCO VIT CommodityRealReturn Strategy PortfolioPIMCO VIT Emerging Markets Bond Portfolio |
| Group 2 Investment Options                                                                                                                                     |
| AZL Gateway FundAZL International Index FundAZL Mid Cap Index FundAZL Russell 1000 Growth Index Fund                                                           | AZL Russell 1000 Value Index FundBlackRock Global Allocation V.I. FundPIMCO VIT Global Multi-Asset Portfolio |
| Group 3 Investment Options                                                                                                                                     |
| AZL Money Market FundFranklin High Income Securities FundFranklin U.S. Government FundPIMCO VIT Global Bond Portfolio (Unhedged)PIMCO VIT High Yield Portfolio | PIMCO VIT Real Return PortfolioPIMCO VIT Total Return PortfolioPIMCO VIT Unconstrained Bond PortfolioTempleton Global Bond Securities Fund |

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| · | If you begin Lifetime Income Payments, AIP ends on the Benefit Election Date. |
|--------|-------------------------------------------------------------------------------|

| · | If you begin Annuity Payments, AIP ends on the Business Day before the Annuity Date. |
|--------|--------------------------------------------------------------------------------------|

| · | the DCA program period ends (which is either six or twelve months); |
|--------|---------------------------------------------------------------------|

| · | you request to end the program (your request must be received at our Service Center by 4 p.m. Eastern Time on the Business Day immediately before the tenth to end that month); or |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | your Contract ends. |
|--------|---------------------|

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| 5. | VALUING YOUR CONTRACT |
|----|-----------------------|

| · | On Wednesday, we receive at our Service Center an additional Purchase Payment of $3,000 from you before the end of the Business Day. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------|

| · | When the New York Stock Exchange closes on that Wednesday, we determine that the accumulation unit value is $13.25 for your selected Investment Option and Account. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 6. | INVESTMENT OPTIONS |
|----|--------------------|

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|   | INVESTMENT OPTIONS |
|--------|--------------------|

| Investment Management CompanyandAdviser/Subadviser                                | Name of Investment Option               | Asset Category                                | Objective(s)                                                                                                                             | Primary Investments(Normal market conditions)                                                                                                                                                                                                                                  |
|-----------------------------------------------------------------------------------|-----------------------------------------|-----------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ALLIANZ FUND OF FUNDS                                                             |
| Managed by Allianz Investment Management LLC                                      | AZL Fusion Balanced Fund                | A “Fund of Funds” Model Portfolio | Long-term capital appreciation with preservation of capital as an important consideration                                                | Allocation among the underlying investments, to achieve a range generally from 40% to 60% of assets in equity funds and approximately 40% to 60% invested in fixed income funds.                                                                                               |
|                                                                              | AZL Fusion Conservative Fund            | A “Fund of Funds” Model Portfolio | Long-term capital appreciation with preservation of capital as an important consideration                                                | Allocation among the underlying investments, to achieve a range generally from 25% to 45% of assets in equity funds and approximately 55% to 75% invested in fixed income funds.                                                                                               |
|                                                                              | AZL Fusion Growth Fund                  | A “Fund of Funds” Model Portfolio | Long-term capital appreciation                                                                                                           | Allocation among the underlying investments, to achieve a range generally from 70% to 90% of assets in equity funds and approximately 10% to 30% invested in fixed income funds.                                                                                               |
|                                                                              | AZL Fusion Moderate Fund                | A “Fund of Funds” Model Portfolio | Long-term capital appreciation                                                                                                           | Allocation among the underlying investments, to achieve a range generally from 55% to 75% of assets in equity funds and approximately 25% to 45% invested in fixed income funds.                                                                                               |
| ALLIANZ GLOBAL INVESTORS CAPITAL                                                  |
| Managed by Allianz Investment Management LLC/Allianz Global Investors Capital LLC | AZL Allianz AGIC Opportunity Fund       | Small Cap                                     | Capital appreciation                                                                                                                     | At least 65% of its assets in common stocks of “growth” companies (believed by the subadviser to have above-average growth prospects), with market capitalizations of less than $2 billion at the time of investment.                                              |
| BLACKROCK                                                                         |
| Managed by Allianz Investment Management LLC/BlackRock Capital Management, Inc.   | AZL BlackRock Capital Appreciation Fund | Large Growth                                  | Long-term growth of capital                                                                                                              | Invests at least 80% of total assets in common and preferred stock and securities convertible into common and preferred stock of mid-size and large-size companies.                                                                                                            |
| Managed by Allianz Investment Management LLC/BlackRock Investment Management, LLC | AZL International Index Fund            | International                                 | Match the performance of the MSCI EAFE® Index as closely as possible                                                                | Invests at least 80% of its assets in a statistically selected sampling of equity securities of companies included in the Morgan Stanley Capital International Europe, Australasia and Far East Index (MSCI EAFE) and in derivative instruments linked to the MSCI EAFE Index. |
|                                                                              | AZL Mid Cap Index Fund                  | Mid Cap                                       | Match the performance of the Standard & Poor’s MidCap 400® Index (“S&P 400 Index”) as closely as possible | Invests at least 80% of the value of its net assets in a statistically selected sampling of equity securities of companies included in the S&P 400 Index and in derivative instruments linked to the S&P 400 Index, primarily futures contracts.                  |

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| Investment Management CompanyandAdviser/Subadviser                                                          | Name of Investment Option             | Asset Category  | Objective(s)                                                                                            | Primary Investments(Normal market conditions)                                                                                                                                                                                                                                                                                                                                   |
|-------------------------------------------------------------------------------------------------------------|---------------------------------------|-----------------|---------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Managed by Allianz Investment Management LLC/BlackRock Advisors, LLC                                        | AZL Money Market Fund                 | Cash Equivalent | Current income consistent with stability of principal                                                   | Invests in a broad range of short-term, high quality U.S. dollar-denominated money market instruments, including government, U.S. and foreign bank, commercial and other obligations. During extended periods of low interest rates, and due in part to contract fees and expenses, the yield of the AZL Money Market Fund may also become extremely low and possibly negative. |
| Managed by Allianz Investment Management LLC/BlackRock Investment Management, LLC                           | AZL Russell 1000 Growth Index Fund    | Large Growth    | Match the total return of the Russell 1000® Growth Index                                           | Invests in all stocks in the Russell 1000® Growth Index in proportion to their weighting in the index.                                                                                                                                                                                                                                                                     |
|                                                                                                        | AZL Russell 1000 Value Index Fund     | Large Value     | Match the total return of the Russell 1000® Value Index                                            | Invests in all stocks in the Russell 1000® Value Index in proportion to their weighting in the index.                                                                                                                                                                                                                                                                      |
|                                                                                                        | AZL S&P 500 Index Fund            | Large Blend     | Match total return of the S&P 500®                                                             | Normally invests in all 500 stocks in the S&P 500® in proportion to their weighting in the index.                                                                                                                                                                                                                                                                      |
|                                                                                                        | AZL Small Cap Stock Index Fund        | Small Cap       | Match performance of the S&P SmallCap 600 Index®                                               | Invests in a representative sample of stocks included in the S&P SmallCap 600 Index®, and in futures whose performance is related to the index, rather than attempting to replicate the index.                                                                                                                                                                         |
| Managed by BlackRock Advisors, LLC/BlackRock Investment Management, LLC                                     | BlackRock Equity Dividend V.I. Fund   | Large Value     | Long-term total return and current income                                                               | Invests at least 80% of its assets in equity securities and at least 80% of its assets in dividend paying securities. May invest in securities of companies with any market capitalization, but will generally focus on large cap securities.                                                                                                                                   |
| Managed by BlackRock Advisors, LLC/BlackRock Investment Management, LLC and BlackRock International Limited | BlackRock Global Allocation V.I. Fund | Specialty       | High total investment return                                                                            | Invests in both equity and debt securities, including money market securities, of issuers located around the world. Seeks diversification across markets, industries, and issuers. May invest in securities of companies of any market capitalization and in REITs.                                                                                                             |
| COLUMBIA                                                                                                    |
| Managed by Allianz Investment Management LLC/Columbia Management Investment Advisers, LLC                   | AZL Columbia Mid Cap Value Fund       | Mid Cap         | Long-term growth of capital                                                                             | Invests at least 80% of net assets in equity securities of companies that have market capitalizations in the range of the companies in the Russell Midcap® Value Index at the time of purchase that the fund’s subadviser believes are undervalued and have the potential for long-term growth.                                                                      |
|                                                                                                        | AZL Columbia Small Cap Value Fund     | Small Cap       | Long-term capital appreciation                                                                          | Invests at least 80% of net assets in equity securities of companies with market capitalizations in the range of the companies in the Russell 2000 Value Index® at the time of purchase that the subadviser believes are undervalued.                                                                                                                                      |
| DAVIS                                                                                                       |
| Managed by Allianz Investment Management LLC/Davis Selected Advisers, L.P.                                  | AZL Davis New York Venture Fund       | Large Value     | Long-term growth of capital                                                                             | Invests the majority of assets in equity securities issued by large companies with market capitalizations of at least $10 billion.                                                                                                                                                                                                                                         |
| DREYFUS                                                                                                     |
| Managed by Allianz Investment Management LLC/The Dreyfus Corporation                                        | AZL Dreyfus Research Growth Fund      | Large Growth    | Long-term growth of capital and income                                                                  | Primarily invests in common stocks of large, well-established and mature companies. Normally invests at least 80% of its net assets in stocks that are included in a widely recognized index of stock market performance. May invest in non-dividend paying companies and up to 30% of its total assets in foreign securities.                                                  |
| Managed by The Dreyfus Corporation/Fayez Sarofim & Co.                                                  | Dreyfus VIF Appreciation Portfolio    | Large Blend     | Long-term capital growth consistent with preservation of capital and current income as a secondary goal | Invests at least 80% of its nets assets in common stocks, focusing on “blue chip” companies wth total market capitalizations of more than $5 billion at the time of purchase, including multinational companies.                                                                                                                                                    |

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| Investment Management CompanyandAdviser/Subadviser                                                                                         | Name of Investment Option                             | Asset Category                 | Objective(s)                                                                              | Primary Investments(Normal market conditions)                                                                                                                                                                                                                                                                                                                |
|--------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------|--------------------------------|-------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| EATON VANCE                                                                                                                                |
| Managed by Allianz Investment Management LLC/Eaton Vance Management                                                                        | AZL Eaton Vance Large Cap Value Fund                  | Large Value                    | Total Return                                                                              | Invests at least 80% of net assets in equity securities, primarily in dividend-paying stocks, of large-cap companies with market capitalizations equal to or greater than the median capitalization of companies included in the Russell 1000 Value Index. May invest up to 25% of total assets in foreign securities, including emerging market securities. |
| Eaton Vance Management                                                                                                                     | Eaton Vance VT Floating-Rate Income Fund              | Specialty                      | High level of current income                                                              | The fund invests at least 80% of its net assets in income producing floating rate loans and other floating rate debt securities. The Fund invests primarily in senior floating rate loans, which are typically below investment grade quality and have below investment grade credit ratings.                                                                |
| FEDERATED                                                                                                                                  |
| Managed by Allianz Investment Management LLC/Federated Global Investment Management Corp.                                                  | AZL Federated Clover Small Value Fund                 | Small Cap                      | Capital Appreciation                                                                      | Under normal market conditions, invests at least 80% of its net assets in common stocks and other equity securities of U.S. companies with small market capitalizations, at the time of purchase in the range of companies included in the Russell 2000 Index.                                                                                               |
| FIDELITY MANAGEMENT & RESEARCH COMPANY                                                                                                 |
| Fidelity Management & Research Company                                                                                                 | Fidelity VIP Emerging Markets Portfolio               | Specialty                      | Capital Appreciation                                                                      | Invests at least 80% of assets in securities of issuers in emerging markets and other investments that are tied economically to emerging markets.                                                                                                                                                                                                            |
|                                                                                                                                       | Fidelity VIP Mid Cap Portfolio                        | Mid Cap                        | Long-term growth of capital                                                               | Invests at least 80% of assets in securities of companies with medium market capitalizations (similar to those in the Russell Midcap Index or S&P MidCap 400 Index).                                                                                                                                                                                     |
|                                                                                                                                       | Fidelity VIP Strategic Income Portfolio               | Intermediate-Term Bonds        | High level of current income and capital appreciation                                     | Invests primarily in debt securities, including lower-quality debt securities, in four general categories: high yield, U.S. Government and investment grade, emerging markets, and foreign developed markets.                                                                                                                                                |
| FRANKLIN TEMPLETON                                                                                                                         |
| Managed by Allianz Investment Management LLC/Franklin Mutual Advisers, LLC, Templeton Global Advisors Limited, and Franklin Advisers, Inc. | AZL Franklin Templeton Founding Strategy Plus Fund    | Specialty                      | Long-term capital appreciation, with income as a secondary goal                           | Invests in a combination of subportfolios or strategies, each of which is managed by an asset manager that is part of Franklin Templeton. The strategies invest primarily in U.S. and foreign equity and fixed income securities.                                                                                                                            |
| Managed by Franklin Advisers, Inc.                                                                                                         | Franklin High Income Securities Fund                  | High-Yield Bonds               | High current income with capital appreciation as a secondary goal                         | Invests primarily to predominantly in high yield, lower-rated debt securities (“junk bonds”) and preferred stocks.                                                                                                                                                                                                                               |
|                                                                                                                                       | Franklin Income Securities Fund                       | Specialty                      | Maximize income while maintaining prospects for capital appreciation                      | Normally invests in debt and equity securities.                                                                                                                                                                                                                                                                                                              |
| Managed by Franklin Advisory Services, LLC                                                                                                 | Franklin Rising Dividends Securities Fund             | Mid Cap                        | Long-term capital appreciation with preservation of capital as an important consideration | At least 80% of net assets in investments of companies that have paid rising dividends.                                                                                                                                                                                                                                                                      |
| Managed by Franklin Advisers, Inc.                                                                                                         | Franklin Strategic Income Securities Fund             | Intermediate-Term Bonds        | High level of current income with a secondary goal of long-term capital appreciation      | Invests primarily to predominantly in U.S. and foreign debt securities, including those in emerging markets. May invest up to 100% of its assets in high yield, lower-quality debt securities.                                                                                                                                                               |
| Administered by Franklin Templeton Services, LLC                                                                                           | Franklin Templeton VIP Founding Funds Allocation Fund | Model Portfolio(Fund of Funds) | Capital appreciation with income as a secondary goal.                                     | Invests equal portions in Class 1 shares of the Franklin Income Securities Fund, Mutual Shares Securities Fund, and Templeton Growth Securities Fund.                                                                                                                                                                                                        |

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| Investment Management CompanyandAdviser/Subadviser                                   | Name of Investment Option                     | Asset Category          | Objective(s)                                                                                                        | Primary Investments(Normal market conditions)                                                                                                                                                                                                                                                                                                                 |
|--------------------------------------------------------------------------------------|-----------------------------------------------|-------------------------|---------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Managed by Franklin Advisers, Inc.                                                   | Franklin U.S. Government Fund                 | Intermediate-Term Bonds | Income                                                                                                              | At least 80% of its net assets in U.S. government securities.                                                                                                                                                                                                                                                                                                 |
| Managed by Franklin Mutual Advisers, LLC                                             | Mutual Shares Securities Fund                 | Large Value             | Capital appreciation, with income as a secondary goal                                                               | Invests primarily in U.S. and foreign equity securities that the manager believes are undervalued.                                                                                                                                                                                                                                                            |
| Managed by Franklin Advisers, Inc.                                                   | Templeton Global Bond Securities Fund         | Intermediate-Term Bonds | High current income, consisent with preservation of capital, with capital appreciation as a secondary consideration | Normally invests at least 80% of its net assets in bonds, which include debt securities of any maturity, such as bonds, notes, bills and debentures.                                                                                                                                                                                                          |
| Managed by Templeton Global Advisors Limited                                         | Templeton Growth Securities Fund              | International Equity    | Long-term capital growth                                                                                            | Normally invests primarily in equity securities of companies located anywhere in the world, including those in the U.S. and in emerging markets.                                                                                                                                                                                                              |
| GATEWAY                                                                              |
| Managed by Allianz Investment Management LLC/Gateway Investment Advisors, LLC        | AZL Gateway Fund                              | Specialty               | Capture equity market investment returns, while exposing investors to less risk than other equity investments       | Normally invests in a broadly diversified portfolio of common stocks, while also selling index call options and purchasing index put options. May invest in companies with small, medium or large market capitalizations and in foreign securities traded in U.S. markets.                                                                                    |
| INVESCO                                                                              |
| Managed by Allianz Investment Management LLC/Invesco Advisers, Inc.                  | AZL Invesco Equity and Income Fund            | Specialty               | Highest possible income consistent with safety of principal. Secondary objective of long-term growth of capital     | Invests at least 80% of its net assets in equity and income securities. Invests at least 65% of its total assets in income-producing equity securities and also invests in investment grade quality debt securities. May invest up to 15% of total assets in REITs and up to 25% ot total assets in foreign securities, including emerging market securities. |
|                                                                                 | AZL Invesco Growth and Income Fund            | Large Value             | Income and long-term growth of capital                                                                              | Invests primarily in income-producing equity securities, including common stocks and convertible securities; also in non-convertible preferred stocks and debt securities rated “investment grade.” May invest  up to 25% of total assets in foreign securities, including emerging markets.                                            |
|                                                                                 | AZL Invesco International Equity Fund         | International           | Long-term growth of capital                                                                                         | At least 80% of its assets in a diversified portfolio of equity securities of foreign issuers that are considered by the fund’s subadviser to have strong earnings growth.                                                                                                                                                                              |
| Managed by Invesco Advisers, Inc.                                                    | Invesco V.I. Balanced-Risk Allocation Fund    | Specialty               | Total return with a low to moderate correlation to traditional financial market indices                             | Invests primarily in derivative instruments and other financially-linked instruments whose performance is expected to correspond to U.S. and international fixed income, equity and commodity markets.                                                                                                                                                        |
|                                                                                 | Invesco Van Kampen V.I. American Value Fund   | Mid Cap                 | Above-average total return over a market cycle of 3-5 years                                                         | Invests at least 80% of net assets in securities of U.S. issuers at the time of investment.                                                                                                                                                                                                                                                                   |
| J.P. MORGAN                                                                          |
| Managed by Allianz Investment Management LLC/J.P. Morgan Investment Management, Inc. | AZL JPMorgan International Opportunities Fund | International           | Long term capital appreciation                                                                                      | Invests at least 80% of assets in a diversified portfolio of equity securities of issuers primarily from developed countries other than the U.S.                                                                                                                                                                                                              |
|                                                                                 | AZL JPMorgan U.S. Equity Fund                 | Large Blend             | High total return                                                                                                   | Invests at least 80% of its net assets, plus any borrowings for investment purposes, primarily in equity securities of large- and medium-capitalization U.S. companies.                                                                                                                                                                                       |

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| Investment Management CompanyandAdviser/Subadviser                                      | Name of Investment Option                                   | Asset Category          | Objective(s)                                                                               | Primary Investments(Normal market conditions)                                                                                                                                                                                                                     |
|-----------------------------------------------------------------------------------------|-------------------------------------------------------------|-------------------------|--------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Managed by J.P. Morgan Investment Management, Inc.                                      | JPMorgan Insurance Trust Core Bond Portfolio                | Intermediate-Term Bonds | Maximize total return                                                                      | Invests at least 80% of net assets in bonds with intermediate to long-term maturities.                                                                                                                                                                            |
| LAZARD                                                                                  |
| Managed by Lazard Asset Management LLC                                                  | Lazard Retirement International Equity Portfolio            | International Equity    | Long-term capital appreciationh                                                            | Invests at least 80% of assets in equity securities, principally common stocks, of relatively large non-U.S. companies with market capitalizations in the range of companies included in the MSCI Index and EAFE Index that the manager believes are undervalued. |
|                                                                                    | Lazard Retirement U.S. Small-Mid Cap Equity Portfolio       | Small Cap               | Long-term capital appreciation                                                             | Invests at least 80% of assets in equity securities, principally common stocks, of small to mid capitalization U.S. companies, with market capitalizations at the time of purchase within the range of companies included n the Russell 2500 Index.               |
| LEGG MASON                                                                              |
| Managed by Legg Mason Partners Fund Advisor, LLC                                        | Legg Mason ClearBridge Variable Aggressive Growth Portfolio | Large Growth            | Capital appreciation                                                                       | Invests primarily in common stocks of companies the portfolio managers believe are experienceing, or will experience, growth in earnings that exceeds the average rate of earnings growth of the companies which comprise the S&P 500 Index.                  |
|                                                                                    | Legg Mason Dynamic Multi-Stragegy VIT Portfilio             | Specialty               | Highest total return and will seek to reduce volatility as a secondary objective.          | Invests primarily in other open-end funds managed by the manager or its affiliates, or ETFs that are based on an index and managed by unaffiliated investment advisers.                                                                                           |
| MFS                                                                                     |
| Managed by Allianz Investment Management LLC/Massachusetts Financial Services Company   | AZL MFS Investors Trust Fund                                | Large Blend             | Capital appreciation                                                                       | Invests primarily in equity securities of companies with large capitalizations that the subadviser believes has above average earnings growth potential, are undervalued, or in a combination of growth and value companies.                                      |
| Managed by Massachusetts Financial Services Company                                     | MFS VIT II International Value Portfolio                    | International Equity    | Capital appreciation                                                                       | Invests primarily in foreign equity securities, including emerging market equity securities.                                                                                                                                                                      |
|                                                                                    | MFS VIT Research Bond Portfolio                             | Intermediate-Term Bond  | Total return with an emphasis on current income, but also considering capital appreciation | Invests at least 80% of net assets in debt instruments, mainly investment grade, but also in less than investment grade quality debt instruments. May also invest in foreign securities and may use derivatives for any investment purpose.                       |
|                                                                                    | MFS VIT Utilities Portfolio                                 | Specialty               | Total return                                                                               | Invests at least 80% of net assets in securities of issuers in the utilities industry and may also invest in debt instruments, including those that are less than investment grade quality.                                                                       |
| MORGAN STANLEY                                                                          |
| Managed by Allianz Investment Management LLC/Morgan Stanley Investment Management, Inc. | AZL Morgan Stanley Global Real Estate Fund                  | Specialty               | Income and capital appreciation                                                            | Invests at least 80% of assets in equity securities of companies in the real estate industry located throughout the world, including real estate investment trusts and real estate operating companies established outside the U.S.                               |
|                                                                                    | AZL Morgan Stanley Mid Cap Growth Fund                      | Mid Cap                 | Capital growth                                                                             | At least 80% of net assets in common stocks and other equity securities of mid capitalization growth companies, with market capitalizations within the range of the Russell Midcap Growth Index.                                                                  |

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| Investment Management CompanyandAdviser/Subadviser                    | Name of Investment Option                              | Asset Category           | Objective(s)                                                                                         | Primary Investments(Normal market conditions)                                                                                                                                                                                                                                                                                             |
|-----------------------------------------------------------------------|--------------------------------------------------------|--------------------------|------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| NFJ                                                                   |
| Managed by Allianz Investment Management LLC/NFJ Investment Group LLC | AZL NFJ International Value Fund                       | International Equity     | Long-term growth of capital and income                                                               | Invests at least 65% of net assets in equity securities of non-U.S. companies with market capitalization greater than $1 billion, with a significant portion in dividend-paying securities and up to 50% in emerging market securities.                                                                                                   |
| OPPENHEIMERFUNDS                                                      |
| Managed by Allianz Investment Management LLC/OppenheimerFunds, Inc.   | AZL Oppenheimer Discovery Fund                         | Small Cap                | Capital appreciation                                                                                 | Under normal market conditions, invests at least 80% of its net assets in common stocks and other equity securities of U.S. companies with small market capitalizations, at the time of purchase in the range of companies included in the Russell 2000 Growth Index and that the subadviser believes to have favorable growth prospects. |
| Managed by OppenheimerFunds, Inc.                                     | Oppenheimer International Growth Fund/VA               | International Equity     | Long-term capital appreciation                                                                       | Invests at least 65% of its total assets in equity securities of issuers that are domiciled or that have their primary operations in at least three different countries outside of the U.S. and may invest up to 100% in foreign companies.                                                                                               |
| PIMCO                                                                 |
| Managed by Pacific Investment Management Company LLC                  | PIMCO EqS Pathfinder Portfolio                         | International Equity     | Capital appreciation                                                                                 | Normally invests in equity securities, including common and preferred stock, of issuers that PIMCO believes are undervalued by the market in comparison to PIMCO’s own determination of the company’s value. May invest in securities and instruments that are economically tied to foreign countries.                        |
|                                                                  | PIMCO VIT All Asset Portfolio                          | Specialty(Fund of Funds) | Maximum real return consistent with preservation of real capital and prudent investment management   | Invests substantially all of its assets in institutional class shares of the underlying PIMCO Funds.                                                                                                                                                                                                                                      |
|                                                                  | PIMCO VIT CommodityRealReturn® Strategy Portfolio | Specialty                | Maximum real return consistent with prudent investment management                                    | Invests in commodity linked derivative instruments backed by a portfolio of inflation-indexed securities and other fixed income securities.                                                                                                                                                                                               |
|                                                                  | PIMCO VIT Emerging Markets Bond Portfolio              | Intermediate-Term Bonds  | Maximum total return, consistent with preservation of capital and prudent investment management      | At least 80% of its assets in fixed income instruments of issuers that economically are tied to emerging markets countries.                                                                                                                                                                                                               |
|                                                                  | PIMCO VIT Global Bond Portfolio (Unhedged)             | Intermediate-Term Bonds  | Maximum total return, consistent with preservation of capital and prudent investment management      | At least 80% of its assets in fixed income instruments of issuers in at least three countries (one of which may be the U.S.), which may be represented by forwards or derivatives. May invest, without limitation, in securities economically tied to emerging market countries.                                                          |
|                                                                  | PIMCO VIT Global Multi-Asset Portfolio                 | Specialty                | Total return which exceeds a blend of 60% MSCI World Index/40% Barclays Capital U.S. Aggregate Index | Invests in a combination of affiliated and unaffiliated funds, fixed income instruments, equity securities, forwards and derivatives. Typically invests 20% to 80% of total assets in equity-related investments.                                                                                                                         |
|                                                                  | PIMCO VIT High Yield Portfolio                         | High-Yield Bonds         | Maximum total return, consistent with preservation of capital and prudent investment management      | At least 80% of assets in a diversified portfolio of high-yield securities (“junk bonds”) rated below investment grade, but at least Caa by Moody’s or equivalently rated by S&P or Fitch. May invest up to 20% of total asets in securities denominated in foreign currencies.                                     |

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| Investment Management CompanyandAdviser/Subadviser                                             | Name of Investment Option                 | Asset Category          | Objective(s)                                                                                         | Primary Investments(Normal market conditions)                                                                                                                                                                                                                                                                                    |
|------------------------------------------------------------------------------------------------|-------------------------------------------|-------------------------|------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                           | PIMCO VIT Low Duration Portfolio          | Short-Term Bonds        | Maximum total return, consistent with preservation of real capital and prudent investment management | At least 65% of total assets in a diversified portfolio of fixed income instruments of varying maturities, which may be represented by forwards or derivatives such as options, futures contracts, or swap agreements. Invests primarily in investment grade debt securities, but may invest up to 10% in high yield securities. |
|                                                                                           | PIMCO VIT Real Return Portfolio      | Intermediate-Term Bonds | Maximum real return, consistent with preservation of real capital and prudent investment management  | At least 80% of its net assets in inflation-indexed bonds of varying maturities issued by the U.S. and non-U.S. governments, their agencies or instrumentalities and corporations.                                                                                                                                               |
|                                                                                           | PIMCO VIT Total Return Portfolio          | Intermediate-Term Bonds | Maximum total return, consistent with preservation of capital and prudent investment management      | At least 65% of total assets in a diversified portfolio of fixed income instruments of varying maturities, which may be represented by forwards or derivatives such as options, futures contracts, or swap agreements.                                                                                                           |
|                                                                                           | PIMCO VIT Unconstrained Bond Portfolio    | Specialty               | Maximum long-term return, consistent with preservation of capital and prudent investment management  | At least 80% of its assets in a diversified portfolio of fixed income instruments of varying maturities, which may be represented by forwards or derivatives such as options, futures contracts, or swap agreements.                                                                                                             |
| PYRAMIS                                                                                        |
| Managed by Allianz Investment Management LLC/Pyramis Global Advisors LLC                       | AZL Pyramis Core Bond Fund                | Intermediate-Term Bond  | High level of current income                                                                         | Invests at least 80% of its net assets in debt securities of all types and in instruments related to such securities, such as repurchase agreements on such securities, and attempts to outperform the Barclays Capital Aggregate Index.                                                                                         |
| SCHRODER                                                                                       |
| Managed by Allianz Investment Management LLC/Schroder Investment Management North America Inc. | AZL Schroder Emerging Markets Equity Fund | Specialty               | Capital appreciation                                                                                 | Invests at least 80% of its net assets in equity securities of companies that the subadviser believes to be “emerging market” issuers. May invest remainder of assets in securities of issuers located anywhere in the world.                                                                                        |
| T. ROWE PRICE                                                                                  |
| Managed by T. Rowe Price Associates, Inc.                                                      | T. Rowe Price Blue Chip Growth Portfolio  | Large Cap Growth        | Long-term capital growth with income as a secondary objective                                        | Invests at least 80% of net assets in common stocks of large and medium-sized blue chip growth companies that, in the managers view, are well established in their industries and have the potential for above-average earnings growth.                                                                                          |
|                                                                                           | T. Rowe Price Equity Income Portfolio     | Large Cap Value         | Substantial dividend income and long-term growth of capital                                          | Invests at least 80% of net assets in common stocks, with 65% in the common stocks of well established companies paying above-average dividends, typically using a “value” approach in selecting investments.                                                                                                        |
|                                                                                           | T. Rowe Price Health Sciences Portfolio   | Specialty               | Long-term capital appreciation                                                                       | Invests at least 80% of net assets in the common stocks of companies engaged in the research, development, production, or distribution of products or services related to health care, medicine, or the life sciences.                                                                                                           |
| WADDELL & REED INVESTMENT MANAGEMENT COMPANY                                               |
| Managed by Waddell & Reed Investment Management Company                                    | Ivy Funds VIP Asset Strategy Portfolio    | Specialty               | Total return                                                                                         | Invests primarily in stocks, bonds and short-term instruments of issuers in markets around the globe, as well as investments in precious metals and investments with exposure to various foreign currencies.                                                                                                                     |
|                                                                                           | Ivy Funds VIP Energy Portfolio            | Specialty               | Capital growth and appreciation                                                                      | Invests at least 80% of net assets in securities of companies within the energy sector, which includes all aspects of the energy industry, such as exploration, discovery, production, distribution or infrastructure of energy and/or alternative energy sources.                                                               |

----

| Investment Management CompanyandAdviser/Subadviser | Name of Investment Option                        | Asset Category   | Objective(s)                    | Primary Investments(Normal market conditions)                                                                                                                                                                                                                                                          |
|----------------------------------------------------|--------------------------------------------------|------------------|---------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                               | Ivy Funds VIP Global Natural Resources Portfolio | Specialty        | Capital growth and appreciation | Invests at least 80% of net assets in equity securities of companies throughout the world that own, explore or develop natural resources and other basic commodities or supply goods and servies to such companies.                                                                                    |
|                                               | Ivy Funds VIP Growth Portfolio                   | Large Cap Growth | Growth of capital               | Invests primarily in a diversified portfolio of common stocks issued by large-cap companies, with market capitalizations of at least $10 billion, which the manager believes are high-quality, growth-oriented companies with appreciaton possibilities.                                               |
|                                               | Ivy Funds VIP Mid Cap Growth Portfolio           | Mid Cap Growth   | Growth of capital               | Invests at least 80% of net assets in the securities of mid cap companies, with market capitalizations within the range of companies in the Russell Midcap Growth Index.                                                                                                                               |
|                                               | Ivy Funds VIP Sciense and Technology Portfolio   | Specialty        | Growth of capital               | Invests at least 80% of net assets in securities of science or technology companies, which in the opinion of the manager, derive a competitive advantage by the application of scientific or technological developments or discoveries to grow their business or increase their competitive advantage. |

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| · | We may choose not to allow you to make transfers during the free look/right-to-examine period. |
|--------|------------------------------------------------------------------------------------------------|

| · | Your request for a transfer must clearly state the Accounts and Investment Options involved and how much to transfer. |
|--------|-----------------------------------------------------------------------------------------------------------------------|

| · | We restrict transfers between your two Accounts. |
|--------|--------------------------------------------------|

|   | – | We do not allow transfers into the Retirement Protection Account during the Income Phase or once the older Covered Person reaches age 81. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | – | The maximum amount you can transfer out of the Heritage Account or Retirement Protection Account is equal to the total Account Value, less your total accumulated Account fee as of the end of the Business Day that we process the transfer. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | – | After the earlier of the older Covered Person’s 81st birthday or the Benefit Election Date you can only make one transfer of the total Retirement Protection Account Value to your other Account. If you transfer out the total Retirement Protection Account Value, the Retirement Protection Account, any Lifetime Income Payments, and the Quarterly Value Death Benefit all end. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Transfer instructions for the Heritage Account and Retirement Protection Account must comply with the “Heritage Account and Retirement Protection Account Investment Option Allocation Restrictions and Quarterly Rebalancing” in section 4, Purchasing the Contract. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Your right to make transfers is subject to the Excessive Trading and Market Timing policy discussed later in this section. |
|--------|----------------------------------------------------------------------------------------------------------------------------|

| · | Account Value transfers between Accounts and Investment Options do not change your future Purchase Payment allocation instructions or how we rebalance your Retirement Protection Account Value quarterly. To change this quarterly rebalancing when you make a transfer, you must also change your future allocation instructions. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| · | Dilution of the interests of long-term investors in an Investment Option, if market timers or others transfer into an Investment Option at prices that are below their true value, or transfer out at prices above their true value. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | An adverse effect on portfolio management, such as causing an Investment Option to maintain a higher level of cash or causing an Investment Option to liquidate investments prematurely. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Increased brokerage and administrative expenses. |
|--------|--------------------------------------------------|

| · | Limit transfer frequency (for example, prohibit more than one transfer a week, or more than two a month, etc.). |
|--------|-----------------------------------------------------------------------------------------------------------------|

| · | Restrict the transfer method (for example, requiring all transfers be sent by first class U.S. mail and rescinding electronic transfer privileges). |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Require a minimum time period between each transfer into or out of the same Investment Option. Our current policy, which is subject to change without notice, prohibits “round trips” within 14 calendar days. We do not include transfers into and/or out of the AZL Money Market Fund when available in your Contract. Round trips are transfers into and back out of the same Investment Option, or transfers out of and back into the same Investment Option. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Refuse transfer requests made on your behalf by an asset allocation and/or market timing service. |
|--------|---------------------------------------------------------------------------------------------------|

| · | Limit the dollar amount of any single Purchase Payment or transfer request to an Investment Option. |
|--------|-----------------------------------------------------------------------------------------------------|

| · | Prohibit transfers into specific Investment Options. |
|--------|------------------------------------------------------|

| · | Impose other limitations or restrictions to the extent permitted by federal securities laws. |
|--------|----------------------------------------------------------------------------------------------|

| · | Our monitoring will be 100% successful in detecting all potentially disruptive trading activity. |
|--------|--------------------------------------------------------------------------------------------------|

| · | Revoking electronic transfer privileges will successfully deter all potentially disruptive trading. |
|--------|-----------------------------------------------------------------------------------------------------|

----

----

| · | You can provide voting instructions based on the dollar value of the Investment Option’s shares in your Contract’s subaccount. We calculate this value based on the number and value of accumulation units for your Contract on the record date. We count fractional units. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | You receive proxy materials and a voting instruction form. |
|--------|------------------------------------------------------------|

| 7. | OUR GENERAL ACCOUNT |
|----|---------------------|

| 8. | EXPENSES |
|----|----------|

----

| · | If you transfer or withdraw the total Heritage Account Value, we deduct the final Heritage Account fee (the total of all daily Heritage Account fees we calculated for the current Contract quarter) before processing the transfer or withdrawal. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | If your Contract ends due to death, we deduct the final Heritage Account fee before calculating the death benefit. |
|--------|--------------------------------------------------------------------------------------------------------------------|

|                 | During the Accumulation Phase |
|----------------------|-------------------------------|
|                 | Maximum                       | Minimum | Current |
| Heritage Account Fee | 1.75%                         | 0.25% | 0.80% |

| · | If you transfer or withdraw the total Retirement Protection Account Value, we deduct the final Retirement Protection Account fee (the total of all daily Retirement Protection Account fees we calculated for the current Contract quarter) before processing the transfer or withdrawal. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | If your Contract ends due to death, we deduct the final Retirement Protection Account fee before calculating the death benefit. |
|--------|---------------------------------------------------------------------------------------------------------------------------------|

----

|                            | During the Accumulation and Income Phases |
|---------------------------------|-------------------------------------------|
|                            | Maximum                                   | Minimum | Current |
| Single Lifetime Income Payments | 1.75%                                     | 0.25% | 1.00% |
| Joint Lifetime Income Payments  | 1.75%                                     | 0.25% | 1.15% |

| · | During the Accumulation and Income Phases for all your Retirement Advantage Contracts if the total Contract Value is at least $100,000 at the time we are to deduct the charge. We determine the total Contract Value for all individually owned Contracts by using the Owner’s social security number, and for non-individually owned Contracts we use the Annuitant’s social security number. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | During the Annuity Phase if the total Portfolio Choice Account Value (or total Heritage Account Value, as applicable) on the Annuity Date is at least $100,000. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | When paying death benefits under death benefit payment options A, B, or C. |
|--------|----------------------------------------------------------------------------|

----

| 9. | ACCESS TO YOUR MONEY |
|----|----------------------|

| · | by taking a withdrawal; |
|--------|-------------------------|

| · | by taking Lifetime Income Payments (Retirement Protection Account only); |
|--------|--------------------------------------------------------------------------|

| · | by taking required minimum distributions (Qualified Contracts only) as discussed in “Minimum Distribution Program and Required Minimum Distribution (RMD) Payments” later in this section; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | by taking Annuity Payments (Portfolio Choice Account or Heritage Account only); or |
|--------|------------------------------------------------------------------------------------|

| · | when we pay a death benefit. |
|--------|------------------------------|

| * | Does not apply to Lifetime Income Payments, systematic withdrawals, or required minimum distributions. |
|---|--------------------------------------------------------------------------------------------------------|

| ** | Does not apply to Lifetime Income Payments. |
|----|---------------------------------------------|

----

| · | total Contract Value determined at the end of the day, |
|--------|--------------------------------------------------------|

| · | less any final Heritage Account fee and/or Retirement Protection Account fee, and |
|--------|-----------------------------------------------------------------------------------|

| · | less any contract maintenance charge. |
|--------|---------------------------------------|

|   | NOTE: |
|--------|-------|

| · | Ordinary income taxes and tax penalties may apply to any withdrawal you take. |
|--------|-------------------------------------------------------------------------------|

| · | We may be required to provide information about you or your Contract to government regulators. We may also be required to stop Contract disbursements and thereby refuse any transfer requests, and refuse to pay any withdrawals, surrenders, or death benefits until we receive instructions from the appropriate regulator. If, pursuant to SEC rules, the AZL Money Market Fund suspends payment of redemption proceeds in connection with a fund liquidation, we will delay payment of any transfer, partial withdrawal, surrender, or death benefit from the AZL Money Market Fund subaccount until the fund is liquidated. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | NOTE: |
|--------|-------|

| · | Ordinary income taxes and tax penalties may apply to systematic withdrawals. |
|--------|------------------------------------------------------------------------------|

| · | The systematic withdrawal program is not available while you are receiving required minimum distribution payments. |
|--------|--------------------------------------------------------------------------------------------------------------------|

| · | This program is only available in the Portfolio Choice Account or Heritage Account. |
|--------|-------------------------------------------------------------------------------------|

----

|   | NOTE: |
|--------|-------|

| · | You should consult a tax adviser before purchasing a Qualified Contract that is subject to RMD payments. |
|--------|----------------------------------------------------------------------------------------------------------|

| · | The minimum distribution program is not available while you are receiving systematic withdrawals. |
|--------|---------------------------------------------------------------------------------------------------|

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

| · | trading on the New York Stock Exchange is restricted; |
|--------|-------------------------------------------------------|

| · | an emergency (as determined by the SEC) exists as a result of which disposal of the Investment Option shares is not reasonably practicable or we cannot reasonably value the Investment Option shares; or |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | during any other period when the SEC, by order, so permits for the protection of Owners. |
|--------|------------------------------------------------------------------------------------------|

| * | Including Lifetime Income Payments and Excess Withdrawals. |
|---|------------------------------------------------------------|

| 10. | LIFETIME INCOME PAYMENTS |
|-----|--------------------------|

----

| Payment Table                                        |
|------------------------------------------------------|
| Current Ten-year U.S. ConstantMaturity Treasury rate | Payment percentage |
| 3.49% and below                                      | 4% |
| 3.50% to 4.99%                                       | 5% |
| 5.00% to 6.49%                                       | 6% |
| 6.50% and above                                      | 7% |

|   | High and Low Ten-Year U.S. Constant Maturity Treasury Rate by Year |
|--------|--------------------------------------------------------------------|
| Year   | 1997                                                               | 1998 | 1999 | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 |
| High   | 6.98%                                                              | 5.81% | 6.45% | 6.79% | 5.54% | 5.44% | 4.61% | 4.89% | 4.66% | 5.25% | 5.26% | 4.27% | 3.98% | 4.01% | 3.75% |
| Low    | 5.72%                                                              | 4.16% | 4.63% | 5.02% | 4.22% | 3.61% | 3.13% | 3.70% | 3.89% | 4.34% | 3.83% | 2.08% | 2.23% | 2.41% | 1.72% |

| · | We increase it by the amount of any additional Purchase Payments received and allocated to the Retirement Protection Account, and any Account Value transferred into the Retirement Protection Account. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | We reduce it for any withdrawals or transfers taken out of the Retirement Protection Account. The reduction is the greater of the percentage of Retirement Protection Account Value taken, or the dollar amount taken. We do not include amounts we withdraw for Contract charges in this reduction. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| · | You cannot make additional Purchase Payments or transfer into the Retirement Protection Account. |
|--------|--------------------------------------------------------------------------------------------------|

| · | Any active automatic investment plan ends. |
|--------|--------------------------------------------|

| · | You can only change the Owner if you selected joint Lifetime Income Payments and: |
|--------|-----------------------------------------------------------------------------------|

|   | – | an Owner dies and the spouse continues the Contract, or |
|--------|---------|---------------------------------------------------------|

|   | – | you remove a joint Covered Person who is also a Joint Owner from the Contract. In this case, the remaining Covered Person must become the new sole Owner. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The Retirement Protection Account fee continues until the Income Phase, or your Retirement Protection Account Value reduces to zero. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------|

| · | If you begin Annuity Payments, Lifetime Income Payments, the Income Phase, the Quarterly Value Death Benefit and the Retirement Protection Account all end. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The Retirement Protection Account Value continues to fluctuate as a result of Investment Option performance. It decreases on a dollar for dollar basis with each Lifetime Income Payment, Excess Withdrawal, and deduction of the contract maintenance charge or transfer fee. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Lifetime Income Payments do not reduce your Benefit Base, but Excess Withdrawals reduce your Benefit Base by the greater of the percentage of Retirement Protection Account Value withdrawn, or the dollar amount withdrawn. Excess Withdrawals reduce your annual maximum Lifetime Income Payment on the next Benefit Anniversary after the withdrawal by the same percentage that we reduced the Benefit Base. Excess Withdrawals may cause Lifetime Income Payments, the Income Phase, the Quarterly Value Death Benefit and the Retirement Protection Account to all end. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Each Lifetime Income Payment and any Excess Withdrawal reduce the Quarterly Anniversary Value under the Quarterly Value Death Benefit by the greater of the percentage of Retirement Protection Account Value withdrawn or the dollar amount withdrawn. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| · | Any part of your annual maximum Lifetime Income Payment that you do not withdraw in a given Benefit Year remains in your Retirement Protection Account for the remainder of that year, but is not added to the annual maximum payment available next year. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | We may increase your annual maximum Lifetime Income Payment on every Benefit Anniversary before the older Covered Person reaches age 91. If you receive a payment increase, we may also change your Benefit Base. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | NOTE: |
|--------|-------|

|  · | If you do not begin Lifetime Income Payments during the eligibility period, you will have incurred higher Contract charges without receiving the benefit of a lifetime payment stream, although you will still have access to the Quarterly Value Death Benefit. |
|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Please discuss the appropriateness of Lifetime Income Payments with your Financial Professional and tax adviser. |
|--------|------------------------------------------------------------------------------------------------------------------|

----

|   | NOTE: |
|--------|-------|

| · | For Qualified Contracts, if we calculate a required minimum distribution (RMD) based on this Contract, after making all Lifetime Income Payments for the calendar year, we determine whether this calendar year’s total RMD has been satisfied by these payments and any other withdrawals. If the RMD amount has not been satisfied, we send you this remaining amount as one RMD payment by the end of the calendar year. We deduct this payment from the Heritage Account first, and remaining amount from the Retirement Protection Account. We consider this payment to be a withdrawal, but it is not an Excess Withdrawal. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | For required annuitization, if on the maximum permitted Annuity Date you are receiving Lifetime Income Payments, we guarantee to pay you the greater of your maximum Lifetime Income Payment or Annuity Payments based on the Contract Value under Annuity Option 1 or Annuity Option 3. If you select any other Annuity Option, this guarantee does not apply. For more information see section 11, The Annuity Phase. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| a) | the payment percentage established on the prior Benefit Anniversary (or the Benefit Election Date if this is the first Benefit Anniversary), or |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------|

| b) | the current payment percentage based on the treasury rate that is in effect on the Benefit Anniversary. |
|----|---------------------------------------------------------------------------------------------------------|

----

| · | The Business Day you take an Excess Withdrawal of the total Retirement Protection Account Value. |
|--------|--------------------------------------------------------------------------------------------------|

| · | The Business Day you transfer the total Retirement Protection Account Value to your other Account. |
|--------|----------------------------------------------------------------------------------------------------|

| · | The Benefit Anniversary that your annual maximum Lifetime Income Payment is less than $100 due to an Excess Withdrawal. |
|--------|-------------------------------------------------------------------------------------------------------------------------|

| · | The Business Day before the Annuity Date that you annuitize the Portfolio Choice Account Value (or Heritage Account Value, as applicable). |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------|

| · | The Business Day all Covered Persons no longer have the required relationship (Owner, Annuitant or sole Beneficiary) as stated in section 3, Ownership, Annuitants, Covered Persons, and Payees. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | For solely owned or non-individually owned Contracts with single Lifetime Income Payments, the date of death of the Covered Person. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------|

| · | For Joint Owners with single Lifetime Income Payments, if the Contract Value has been reduced to zero, the date of death of the Covered Person. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| · | For non-spouse Joint Owners with single Lifetime Income Payments, if the Contract Value has not been reduced to zero, the date of death of the first Joint Owner. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | For spouse Joint Owners with single Lifetime Income Payments, if the Contract Value has not been reduced to zero, the date of death of the first Joint Owner unless the surviving spouse is the Covered Person and continues the Contract. If the surviving spouse who is also the Covered Person continues the Contract, the Income Phase ends on the date of death of the Covered Person. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | For joint Lifetime Income Payments, the date of death of the last surviving Covered Persons. However, if a Covered Person dies and the surviving spouse, who is also a Covered Person, elects to receive the death benefit instead of continuing the Contract, then Lifetime Income Payments stop and the Income Phase ends as of the end of the Business Day during which we receive his or her Valid Claim. If joint Covered Persons were not federally recognized spouses as of the date of the first Covered Person’s death, spousal continuation of the Contract is not available and the Income Phase ends as of this date of death. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | When the Contract ends. |
|--------|-------------------------|

| 11. | THE ANNUITY PHASE |
|-----|-------------------|

----

| ·   | The Portfolio Choice Account Value (or Heritage Account Value, as applicable) on the Annuity Date. |
|--------------------|----------------------------------------------------------------------------------------------------|

| · | The age of the Annuitant and any joint Annuitant on the Annuity Date. |
|--------|-----------------------------------------------------------------------|

| · | The gender of the Annuitant and any joint Annuitant where permitted. |
|--------|----------------------------------------------------------------------|

| · | The Annuity Option you select. |
|--------|--------------------------------|

| · | Your Contract’s interest rate (or current rates, if higher) and mortality table. |
|--------|----------------------------------------------------------------------------------------|

----

| * | In Florida, the earliest acceptable Annuity Date is one year after the Issue Date. |
|---|------------------------------------------------------------------------------------|

|   | NOTE: |
|--------|-------|

| · | If on the maximum permitted Annuity Date your Contract Value is greater than zero, you must annuitize your Contract. We notify you of your available options in writing 60 days in advance. If you have not selected an Annuity Option, we make payments under Annuity Option 2 with five years of guaranteed monthly payments. Upon annuitization you no longer have Contract Value, Portfolio Choice Account Value (or Heritage Account Value, as applicable), Retirement Protection Account Value, a death benefit, and any other periodic withdrawals or payments other than Annuity Payments. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | For Lifetime Income Payments: If on the maximum permitted Annuity Date we require you to annuitize your Contract and you are receiving Lifetime Income Payments, and your Contract Value is greater than zero, we make the following guarantee if you take Annuity Payments under Annuity Option 1 or 3. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | For single Lifetime Income Payments, if you choose Annuity Option 1 (Life Annuity) where the sole Annuitant is the sole Covered Person, then your Annuity Payments equal the greater of: |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | annual Annuity Payments under Annuity Option 1 based on the Contract Value; or |
|--------|--------------------------------------------------------------------------------|

| · | the current annual maximum Lifetime Income Payment available to you. |
|--------|----------------------------------------------------------------------|

|   | For joint Lifetime Income Payments, if you choose Annuity Option 3 (Joint and Last Survivor Annuity) with Annuity Payments to continue at a level of 100% to the surviving joint Annuitant, and both joint Annuitants are the joint Covered Persons, then your Annuity Payments equal the greater of: |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | annual Annuity Payments under Annuity Option 3 based on the Contract Value; or |
|--------|--------------------------------------------------------------------------------|

| · | the current annual maximum Lifetime Income Payment available to you. |
|--------|----------------------------------------------------------------------|

|   | However, if you select any other Annuity Option, this guarantee does not apply. |
|--------|---------------------------------------------------------------------------------|

| 12. | DEATH BENEFIT |
|-----|---------------|

----

| · | We increase it by the amount of any additional Purchase Payments received and allocated to the Heritage Account, and any Retirement Protection Account Value transferred into the Heritage Account. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | We reduce it for any withdrawals or transfers taken out of the Heritage Account. The reduction is the greater of the percentage of Heritage Account Value taken, or the dollar amount taken. Withdrawals include RMD payments under the minimum distribution program, but do not include amounts we withdraw for the contract maintenance charge or transfer fee. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | We increase it by the amount of any additional Purchase Payments received and allocated to the Retirement Protection Account, and any Portfolio Choice Account Value (or Heritage Account Value, as applicable) transferred into the Retirement Protection Account. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | We reduce it for any withdrawals or transfers taken out of the Retirement Protection Account. The reduction is the greater of the percentage of Retirement Protection Account Value taken, or the dollar amount taken. Withdrawals include Lifetime Income Payments, Excess Withdrawals, and any additional RMD payment resulting from a required minimum distribution, but do not include amounts we withdraw for the contract maintenance charge or transfer fee. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | the older Covered Person’s 91st birthday; or |
|--------|----------------------------------------------------|

| · | the end of the Business Day during which we first receive a Valid Claim from any one Beneficiary |
|--------|--------------------------------------------------------------------------------------------------|

----

| · | The Business Day before the Annuity Date. |
|--------|-------------------------------------------|

| · | On or after the Benefit Election Date, the Business Day that the Quarterly Anniversary Value and Retirement Protection Account Value are both zero. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| · | When the Contract ends. |
|--------|-------------------------|

| · | increase the Retirement Protection Account Value to equal the Quarterly Value Death Benefit if that amount is greater, and/or |
|--------|-------------------------------------------------------------------------------------------------------------------------------|

| · | increase the Heritage Account Value to equal the Heritage Death Benefit if that amount is greater. |
|--------|----------------------------------------------------------------------------------------------------|

| 13. | TAXES |
|-----|-------|

----

| Type of Contract                      | Persons and Entities that can buy the Contract                                                                                                                                      |
|---------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| IRA                                   | Must have the same individual as Owner and Annuitant.                                                                                                                               |
| Roth IRA                              | Must have the same individual as Owner and Annuitant.                                                                                                                               |
| Simplified Employee Pension (SEP) IRA | Must have the same individual as Owner and Annuitant.                                                                                                                               |
| Certain Code Section 401 Plans        | A qualified retirement plan is the Owner and the Annuitant must be an individual. We may determine which types of qualifed retirement plans are eligible to purchase this Contract. |

| · | Taxes on earnings are deferred until you take money out. |
|--------|----------------------------------------------------------|

| · | When you take money out of a Non-Qualified Contract, earnings are generally subject to Federal income tax and applicable state income tax. All pre-tax funds distributed from Qualified Contracts are subject to federal and state income tax, but qualified distributions from Roth IRA Contracts are not subject to federal income tax. This prospectus does not address specific state tax laws. You should discuss state taxation with your tax adviser. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Taxable distributions are subject to an ordinary income tax rate, rather than a capital gains rate. |
|--------|-----------------------------------------------------------------------------------------------------|

| · | Beginning in 2013, distributions from Non-Qualified Contracts will be considered investment income for purposes of the newly enacted Medicare tax on investment income. Thus, in certain circumstances, a 3.8% tax may apply to some or all of the taxable portion of distributions (e.g. earnings) to individuals whose income exceeds certain threshold amounts ($200,000 for filing single, $250,000 for married filing jointly and $125,000 for married filing separately.) Please consult a tax advisor for more information. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | If you take partial withdrawals from your Non-Qualified Contract, the withdrawals are generally taxed as though you were paid taxable earnings first, and then as a non-taxable return of Purchase Payments. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | If you fully annuitize your Non-Qualified Contract and receive a stream of Annuity Payments you receive the benefit of the exclusion ratio, and each Annuity Payment you receive is treated partly as taxable earnings and partly as non-taxable return of Purchase Payments. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | If you take partial withdrawals or annuitize a Qualified Contract, you will be responsible for determining what portion, if any, of the distribution consists of after-fax funds. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Lifetime Income Payments are taxed as partial withdrawals. |
|--------|------------------------------------------------------------|

| · | If you take out earnings before age 59½, you may be subject to a Federal 10% penalty tax, unless you take a lifetime annuitization of your Contract or you take money out in a stream of substantially equal payments over your expected life in accordance with the requirements of the Code. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | A pledge or assignment of a Contract may be treated as a taxable event. You should discuss any pledge or assignment of a Contract with your tax adviser. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | If you purchase multiple non-qualified deferred annuity contracts from an affiliated group of companies in one calendar year, these contracts are treated as one contract for purposes of determining the tax consequences of any distribution. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Death benefit proceeds from Non-Qualified Contracts are taxable to the beneficiary as ordinary income to the extent of any earnings. Death benefit proceeds must be paid out in accordance with the requirements of the Code. Federally recognized spouses are given specialized treatment in receipt of payments. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| · | Depending upon the type of Qualified Contract you own, required minimum distributions (RMDs) must be satisfied when you reach a certain age. If you enroll in our minimum distribution program, we make RMD payments to you that are designed to meet this Contract’s RMD requirements. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | When you take money out of a Contract, we may deduct premium tax that we pay on your Contract. This tax varies from 0% to 3.5%, depending on your state. Currently, we pay this tax and do not pass it on to you. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | you might have to pay a withdrawal charge on your previous contract, |
|--------|----------------------------------------------------------------------|

| · | other charges under this Contract may be higher (or lower), |
|--------|-------------------------------------------------------------|

| · | the benefits may be different, and |
|--------|------------------------------------|

| · | you will no longer have access to any benefits from your previous contract. |
|--------|-----------------------------------------------------------------------------|

| 14. | OTHER INFORMATION |
|-----|-------------------|

----

| · | marketing services and increased access to their Financial Professionals; |
|--------|---------------------------------------------------------------------------|

| · | sales promotions relating to the Contracts; |
|--------|---------------------------------------------|

| · | costs associated with sales conferences and educational seminars; |
|--------|-------------------------------------------------------------------|

| · | the cost of client meetings and presentations; and |
|--------|----------------------------------------------------|

| · | other sales expenses incurred by them. |
|--------|----------------------------------------|

----

| · | issuance and maintenance of the Contracts, |
|--------|--------------------------------------------|

| · | maintenance of Owner records, |
|--------|-------------------------------|

| · | processing and mailing of account statements and other mailings to Owners, and |
|--------|--------------------------------------------------------------------------------|

| · | routine customer service including: |
|--------|-------------------------------------|

|   | – | responding to Owner correspondence and inquiries, |
|--------|---------|---------------------------------------------------|

|   | – | processing of Contract changes, |
|--------|---------|---------------------------------|

|   | – | processing withdrawal requests (both partial and total) and |
|--------|---------|-------------------------------------------------------------|

|   | – | processing annuitization requests. |
|--------|---------|------------------------------------|

----

| 15. | PRIVACY AND SECURITY STATEMENT |
|-----|--------------------------------|

| · | From you, either directly or through your agent. This may include information on your insurance application or other forms you may complete, such as your name, address and telephone number. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | From others, through the process of handling a claim. This may include information from medical or accident reports. |
|--------|----------------------------------------------------------------------------------------------------------------------|

| · | From your doctor or during a home visit by a health assessment professional. This may include medical information about you gathered with your written authorization. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | From your relationship with us, such as the number of years you have been a customer or the types of insurance products you purchased. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------|

| · | From a consumer reporting agency such as a medical, credit, or motor vehicle report. The information in these reports may be kept by the agency and shared with others. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | With affiliates and service providers in order to administer or service your policy. |
|--------|--------------------------------------------------------------------------------------|

| · | With consumer reporting agencies to obtain a medical report, credit report, or motor vehicle report. These reports are used to determine eligibility for coverage or to process your requested transactions. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | With your insurance agent so that they can perform services for you. |
|--------|----------------------------------------------------------------------|

| · | With medical professionals in order to process your claim. |
|--------|------------------------------------------------------------|

| · | With a state Department of Insurance in order to examine our records or business practices. |
|--------|---------------------------------------------------------------------------------------------|

| · | With a state or federal law enforcement agency, as required by law or to report suspected fraud activities. |
|--------|-------------------------------------------------------------------------------------------------------------|

| · | With research groups to conduct studies on claims results. No individual is identified in any study or report. |
|--------|----------------------------------------------------------------------------------------------------------------|

----

| · | Allianz Life Insurance Company of North America |
|--------|-------------------------------------------------|

| · | Allianz Life Insurance Company of New York |
|--------|--------------------------------------------|

| · | Allianz Investment Management LLC |
|--------|-----------------------------------|

| · | Allianz Life Financial Services, LLC |
|--------|--------------------------------------|

| · | Questar Asset Management, Inc. |
|--------|--------------------------------|

| · | Questar Capital Corporation |
|--------|-----------------------------|

| 16. | TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION (SAI) |
|-----|--------------------------------------------------------------------|

| Allianz Life…………………………………………………………….     | 2 | Annuity Purchases by Nonresident Aliens and Foreign                                                                                     |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---|-----------------------------------------------------------------------------------------------------------------------------------------|--------|
| Experts……………………………………………………..…………. | 2 |    Corporations……………………………………… | 8      |
| Legal Opinions………………………………………………………..                | 2 | Income Tax Withholding…………………………….                                    | 8      |
| Distributor……………………………………………………………..     | 2 | Multiple Contracts……………………………………                    | 8      |
| Federal Tax Status…………………………………………….……..                         | 3 | Partial 1035 Exchanges…………………………….                                    | 9      |
| Annuity Contracts in General…………………………..……….                                                         | 3 | Assignments, Pledges and Gratuitous Transfers…                                                                                    | 9      |
| Taxation of Annuities in General…………………………….….                                                             | 3 | Death Benefits……………………………………….                | 9      |
| Qualified Contracts……………………………..………………..                                     | 3 | Federal Estate Taxes………………………………..                              | 9      |
| Purchasing a Qualified Contract………………………………..                                                              | 5 | Generation-Skipping Transfer Tax…………………                                                       | 9      |
| Distributions – Qualified Contracts………………….………….                                                           | 5 | Foreign Tax Credits………………………………….                         | 9      |
| Distributions – Non-Qualified Contracts……………………….                                                                      | 6 | Possible Tax Law Changes…………………………                                          | 9      |
| Required Distributions……………………………………………                                      | 7 | Annuity Payments………………………………………..             | 10     |
| Withholding………………………………………………………..                   | 7 | Annuity Payment Options……………………………                                    | 10     |
| Diversification……………………………………………………..                      | 7 | Financial Statements…………………………………….                 | 10     |
| Owner Control…………………………………………………….                         | 8 | Appendix – Death of the Owner and/or Annuitant…                                                                             | 11     |
| Contracts Owned by Non-Individuals…………………………..                                                                         | 8 |                                                                                                                                    |   |

----

|   | APPENDIX A – ANNUAL OPERATING EXPENSES FOR EACH INVESTMENT OPTION |
|--------|-------------------------------------------------------------------------|

| Investment Option                                                     | Management fees | Rule 12b-1 fees | Service fees | Other expenses | Acquired fund fees and expenses | Total annual fund operating expenses before fee waivers and/or expense reimbursements |
|-----------------------------------------------------------------------|-----------------|-----------------|--------------|----------------|---------------------------------|---------------------------------------------------------------------------------------|
| ALLIANZ GLOBAL INVESTORS CAPITAL                                      |            |            |         |           |                            |                                                                                  |
| AZL Allianz AGIC Opportunity Fund                                     | .85             | .25             | –      | .09            | –                         | 1.19                                                                                  |
| BLACKROCK                                                             |            |            |         |           |                            |                                                                                  |
| AZL BlackRock Capital Appreciation  Fund                    | .80             | .25             | –      | .08            | –                         | 1.13                                                                                  |
| AZL International Index Fund                                          | .35             | .25             | –      | .23            | –                         | .83                                                                                   |
| AZL Mid Cap Index Fund                                                | .25             | .25             | –      | .13            | .02                             | .65                                                                                   |
| AZL Money Market Fund                                                 | .35             | .25             | –      | .06            | –                         | .66                                                                                   |
| AZL Russell 1000 Growth Index Fund                               | .44             | .25             | –      | .13            | –                         | .82                                                                                   |
| AZL Russell 1000 Value Index Fund                                     | .44             | .25             | –      | .10            | .01                             | .80                                                                                   |
| AZL S&P 500 Index Fund                                            | .17             | .25             | –      | .10            | –                         | .52                                                                                   |
| AZL Small Cap Stock Index Fund                                        | .26             | .25             | –      | .12            | .02                             | .65                                                                                   |
| BlackRock Equity Dividend V.I. Fund – Class 3                   | .60             | .25             | –      | .49            | –                         | 1.34                                                                                  |
| BlackRock Global Allocation V.I. Fund – Class 3                 | .64             | .25             | –      | .26            | .02                             | 1.17                                                                                  |
| COLUMBIA                                                              |            |            |         |           |                            |                                                                                  |
| AZL Columbia Mid Cap Value Fund                                       | .75             | .25             | –      | .08            | .01                             | 1.09                                                                                  |
| AZL Columbia Small Cap Value Fund                                     | .90             | .25             | –      | .10            | –                         | 1.25                                                                                  |
| DAVIS                                                                 |            |            |         |           |                            |                                                                                  |
| AZL Davis New York Venture Fund – Class 2                       | .75             | .25             | –      | .10            | –                         | 1.10                                                                                  |
| DREYFUS                                                               |            |            |         |           |                            |                                                                                  |
| AZL Dreyfus Research Growth Fund                                      | .77             | .25             | –      | .08            | –                         | 1.10                                                                                  |
| Dreyfus VIF Appreciation Portfolio                                    | .75             | .25             | –      | .05            | –                         | 1.05                                                                                  |
| EATON VANCE                                                           |            |            |         |           |                            |                                                                                  |
| AZL Eaton Vance Large Cap Value Fund                                  | .74             | .25             | –      | .08            | –                         | 1.07                                                                                  |
| Eaton Vance VT Floating-Rate Income Fund                              | .58             | .25             | .25          | .10            | –                         | 1.18                                                                                  |
| FEDERATED                                                             |
| AZL Federated Clover Small Value Fund                                 | .75             | .25             | –      | .09            | –                         | 1.09                                                                                  |
| FIDELITY MANAGEMENT & RESEARCH COMPANY                            |
| Fidelity VIP Emerging Markets Portfolio – Service Class 2       | .81             | .25             | –      | .48            | –                         | 1.54                                                                                  |
| Fidelity VIP Mid Cap Portfolio – Service Class 2                | .56             | .25             | –      | .10            | –                         | .91                                                                                   |
| Fidelity VIP Strategic Income Portfolio – Service Class 2       | .57             | .25             | –      | .13            | –                         | .95                                                                                   |
| FRANKLIN TEMPLETON                                                    |            |            |         |           |                            |                                                                                  |
| AZL Franklin Templeton Founding Strategy Plus Fund                    | .70             | .25             | –      | .31            | –                         | 1.26                                                                                  |
| Franklin High Income Securites Fund – Class 2                   | .53             | .25             | –      | .05            | –                         | .83                                                                                   |
| Franklin Income Securities Fund – Class 2                       | .45             | .25             | –      | .02            | –                         | .72                                                                                   |
| Franklin Rising Dividends Securities Fund – Class 2             | .62             | .25             | –      | .02            | .01                             | .90                                                                                   |
| Franklin Strategic Income Securities Fund – Class 2             | .35             | .25             | –      | .26            | .01                             | .87                                                                                   |
| Franklin Templeton VIP Founding Funds Allocation Fund – Class 2 | .00             | .25             | –      | .11            | .65                             | 1.01                                                                                  |
| Franklin U.S. Government Fund – Class 2                         | .48             | .25             | –      | .03            | –                         | .76                                                                                   |
| Mutual Shares Securities Fund – Class 2                         | .60             | .25             | –      | .13            | –                         | .98                                                                                   |
| Templeton Global Bond Securities Fund – Class 2                 | .46             | .25             | –      | .10            | –                         | .81                                                                                   |
| Templeton Growth Securities Fund –  Class 2           | .74             | .25             | –      | .04            | –                         | 1.03                                                                                  |
| GATEWAY                                                               |
| AZL Gateway Fund                                                      | .80             | .25             | –      | .20            | .01                             | 1.26                                                                                  |

----

| Investment Option                                                            | Management fees | Rule 12b-1 fees | Service fees | Other expenses | Acquired fund fees and expenses | Total annual fund operating expenses before fee waivers and/or expense reimbursements |
|------------------------------------------------------------------------------|-----------------|-----------------|--------------|----------------|---------------------------------|---------------------------------------------------------------------------------------|
| INVESCO                                                                      |
| AZL Invesco Equity and Income Fund                                           | .75             | .25             | –      | .09            | .02                             | 1.11                                                                                  |
| AZL Invesco Growth and Income Fund                                           | .76             | .25             | –      | .08            | –                         | 1.09                                                                                  |
| AZL Invesco International Equity Fund                                        | .90             | .25             | –      | .12            | .01                             | 1.28                                                                                  |
| Invesco V.I. Balanced-Risk Allocation Fund – Series II                 | .92             | .25             | –      | .30            | .02                             | 1.49                                                                                  |
| Invesco Van Kampen V.I. American Value Fund – Series II                | .72             | .25             | –      | .25            | –                         | 1.22                                                                                  |
| J.P. MORGAN                                                                  |            |            |         |           |                            |                                                                                  |
| AZL JPMorgan International Opportunities Fund                                | .95             | .25             | –      | .12            | –                         | 1.32                                                                                  |
| AZL JPMorgan U.S. Equity Fund – Class 2                                | .80             | .25             | –      | .08            | –                         | 1.13                                                                                  |
| JPMorgan Insurance Trust Core Bond Portfolio – Class 2                 | .40             | .25             | –      | .19            | –                         | .84                                                                                   |
| LAZARD                                                                       |
| Lazard Retirement International Equity Portfolio – Service Shares      | .75             | .25             | –      | .12            | –                         | 1.12                                                                                  |
| Lazard Retirement U.S. Small-Mid Cap Equity Portfolio – Service Shares | .75             | .25             | –      | .15            | –                         | 1.15                                                                                  |
| LEGG MASON                                                                   |
| Legg Mason ClearBridge Variable Aggressive Growth Portfolio – Class II | .75             | .25             | –      | .07            | –                         | 1.07                                                                                  |
| Legg Mason Dynamic Multi-Strategy VIT Portfolio – Class II             | .45             | .25             | –      | .15            | .52                             | 1.37                                                                                  |
| MFS                                                                          |            |            |         |           |                            |                                                                                  |
| AZL MFS Investors Trust Fund                                                 | .75             | .25             | –      | .09            | –                         | 1.09                                                                                  |
| MFS VIT II International Value Portfolio – Service Class               | .90             | .25             | –      | .11            | –                         | 1.26                                                                                  |
| MFS VIT Research Bond Portfolio – Service Class                        | .50             | .25             | –      | .07            | –                         | .82                                                                                   |
| MFS VIT Utilities Portfolio – Service Class                            | .73             | .25             | –      | .08            | –                         | 1.06                                                                                  |
| MORGAN STANLEY                                                               |            |            |         |           |                            |                                                                                  |
| AZL Morgan Stanley Global Real Estate Fund                                   | .90             | .25             | –      | .20            | –                         | 1.35                                                                                  |
| AZL Morgan Stanley Mid Cap Growth Fund                                       | .80             | .25             | –      | .09            | –                         | 1.14                                                                                  |
| NFJ                                                                          |            |            |         |           |                            |                                                                                  |
| AZL NFJ International Value Fund                                             | .90             | .25             | –      | .09            | –                         | 1.24                                                                                  |
| OPPENHEIMERFUNDS                                                             |
| AZL Oppenheimer Discovery Fund                                               | .85             | .25             | –      | .09            | –                         | 1.19                                                                                  |
| Oppenheimer International Growth Fund/VA – Service Shares              | .95             | .25             | –      | .14            | –                         | 1.34                                                                                  |
| PIMCO                                                                        |            |            |         |           |                            |                                                                                  |
| PIMCO EqS Pathfinder Portfolio – Advisor Class                         | 1.10            | .25             | –      | .01            | .03                             | 1.39                                                                                  |
| PIMCO VIT All Asset Portfolio – Admin. Class                           | .425            | –         | .15          | –        | .74                             | 1.315                                                                                 |
| PIMCO VIT CommodityRealReturn Strategy Portfolio – Admin. Class        | .74             | –         | .15          | .02            | .14                             | 1.05                                                                                  |
| PIMCO VIT Emerging Markets Bond Portfolio – Admin. Class               | .85             | –         | .15          | –        | –                         | 1.00                                                                                  |
| PIMCO VIT Global Bond Portfolio (Unhedged) – Admin. Class              | .75             | –         | .15          | –        | –                         | .90                                                                                   |
| PIMCO VIT Global Multi-Asset Portfolio – Admin. Class                  | .95             | –         | .15          | –        | .51                             | 1.61                                                                                  |
| PIMCO VIT Low Duration Portfolio                                             | .50             | –         | .15          | –        | –                         | .65                                                                                   |
| PIMCO VIT High Yield Portfolio –  Admin. Class               | .60             | –         | .15          | –        | –                         | .75                                                                                   |
| PIMCO VIT Real Return Portfolio – Admin. Class                         | .50             | –         | .15          | –        | –                         | .65                                                                                   |
| PIMCO VIT Total Return Portfolio – Admin. Class                        | .50             | –         | .15          | –        | –                         | .65                                                                                   |
| PIMCO VIT Unconstrained Bond Portfolio – Admin Class                   | .90             | –         | .15          | –        | –                         | 1.05                                                                                  |
| PYRAMIS                                                                      |            |            |         |           |                            |                                                                                  |
| AZL Pyramis Core Bond Fund                                                   | .50             | .25             | –      | .15            | –                         | .90                                                                                   |
| SCHRODER                                                                     |
| AZL Schroder Emerging Markets Equity Fund                                    | 1.23            | .25             | –      | .22            | –                         | 1.70                                                                                  |
| T. ROWE PRICE                                                                |
| T. Rowe Price Blue Chip Growth Portfolio  – Class II         | .85             | .25             | –      | –        | –                         | 1.10                                                                                  |
| T. Rowe Price Equity Income Portfolio – Class II                       | .85             | .25             | –      | –        | –                         | 1.10                                                                                  |
| T. Rowe Price Health Sciences Portfolio  – Class II          | .95             | .25             | –      | –        | –                         | 1.20                                                                                  |
| WADDELL & REED INVESTMENT MANAGEMENT COMPANY                             |
| Ivy Funds VIP Asset Strategy Portfolio                                       | .69             | .25             | –      | .06            | –                         | 1.00                                                                                  |
| Ivy Funds VIP Energy Portfolio                                               | .85             | .25             | –      | .14            | –                         | 1.24                                                                                  |
| Ivy Funds VIP Global Natural Resources Portfolio                             | 1.00            | .25             | –      | .12            | –                         | 1.37                                                                                  |
| Ivy Funds VIP Growth Portfolio                                               | .70             | .25             | –      | .05            | –                         | 1.00                                                                                  |
| Ivy Funds VIP Mid Cap Growth Portfolio                                       | .85             | .25             | –      | .08            | –                         | 1.18                                                                                  |
| Ivy Funds VIP Science and Technology Portfolio                               | .85             | .25             | –      | .08            | –                         | 1.18                                                                                  |

----

| Investment Option            | Management fees | Rule 12b-1 fees | Other expenses | Total  | Acquired fund fees and expenses | Total annual fund operating expenses before fee waivers and/or expense reimbursements |
|------------------------------|-----------------|-----------------|----------------|--------|---------------------------------|---------------------------------------------------------------------------------------|
| ALLIANZ FUND OF FUNDS        |            |            |           |   |                            |                                                                                  |
| AZL Fusion Balanced Fund     | .20             | –         | .03            | .23    | .86                             | 1.09                                                                                  |
| AZL Fusion Conservative Fund | .20             | –         | .06            | .26    | .80                             | 1.06                                                                                  |
| AZL Fusion Growth Fund       | .20             | –         | .03            | .23    | .99                             | 1.22                                                                                  |
| AZL Fusion Moderate Fund     | .20             | –         | .02            | .22    | .92                             | 1.14                                                                                  |

|   |   |
|--------|--------|

----

|   | APPENDIX B – EFFECTS OF PARTIAL WITHDRAWALS AND TRANSFERS ON THE VALUES AVAILABLE UNDER THE RETIREMENT PROTECTION ACCOUNT |
|--------|---------------------------------------------------------------------------------------------------------------------------------|

| Transfer to the Portfolio Choice Account | Contract Value | Retirement Protection Account Value | Quarterly Anniversary Value (Benefit Base and Quarterly Value Death Benefit) |
|------------------------------------------|----------------|-------------------------------------|------------------------------------------------------------------------------|
| Prior to transfer                        | $150,000       | $100,000                            | $102,000                                                                     |
| $5,000 transfer                          | no change      | –$5,000                       | –[($5,000/ 100,000) X 102,000)] =– $5,100                        |
| After transfer                           | $150,000       | $95,000                             | $96,900                                                                      |

| Lifetime Income Payment | Retirement Protection Account Value | Quarterly Value Death Benefit’s Quarterly Anniversary Value | Benefit Base |
|-------------------------|-------------------------------------|-------------------------------------------------------------------|--------------|
| Prior to payment        | $97,000                             | $120,000                                                          | $120,000     |
| $4,800 payment          | – $4,800                      | –[($4,800/ 97,000) x 120,000)] =– $5,938              | no change    |
| After payment           | $92,200                             | $114,062                                                          | $120,000     |

| Excess Withdrawal   | Retirement Protection Account Value | Benefit Base                                         | Next Anniversary’s Annual Maximum Payment  |
|---------------------|-------------------------------------|------------------------------------------------------|--------------------------------------------------|
| Prior to withdrawal | $92,000                             | $120,000                                             | $4,800                                           |
| $5,000 withdrawal   | – $5,000                      | –[($5,000/ 92,000) x 120,000)] =– $6,522 | –[($5,000/ 92,000) x 4,800)] =– $261 |
| After withdrawal    | $87,000                             | $113,478                                             | $4,539                                           |

|   |   |
|--------|--------|

----

|   | FOR SERVICE OR MORE INFORMATION |
|--------|---------------------------------|

|   | Public Reference Section of the Commission |
|--------|--------------------------------------------|

|   | 100 F Street, NE |
|--------|------------------|

|   | Washington, DC 20549 |
|--------|----------------------|

|   | Allianz Life Insurance Company of North America |
|--------|-------------------------------------------------|

|   | P.O. Box 561 |
|--------|--------------|

|   | Minneapolis, MN 55440-0561 |
|--------|----------------------------|

|   | (800) 624-0197 |
|--------|----------------|

|   | Allianz Life Insurance Company of North America |
|--------|-------------------------------------------------|

|   | 5701 Golden Hills Drive |
|--------|-------------------------|

|   | Golden Valley, MN 55416-1297 |
|--------|------------------------------|

|   | Allianz Life Insurance Company of North America |
|--------|-------------------------------------------------|

|   | NW5989 |
|--------|--------|

|   | P.O. Box 1450 |
|--------|---------------|

|   | Minneapolis, MN 55485-5989 |
|--------|----------------------------|

|   | Allianz Life Insurance Company of North America |
|--------|-------------------------------------------------|

|   | NW5989 |
|--------|--------|

|   | 1801 Parkview Drive |
|--------|---------------------|

|   | Shoreview, MN 55126 |
|--------|---------------------|

----

|   | PART B – SAI |
|--------|--------------------|

|   | STATEMENT OF ADDITIONAL INFORMATION |
|--------|-------------------------------------|

|   | ALLIANZ RETIREMENT ADVANTAGESM |
|--------|--------------------------------|

|   | INDIVIDUAL FLEXIBLE PURCHASE PAYMENT |
|--------|--------------------------------------|

|   | VARIABLE DEFERRED ANNUITY CONTRACT |
|--------|------------------------------------|

|   | ISSUED BY |
|--------|-----------|

|   | ALLIANZ LIFE® VARIABLE ACCOUNT B (THE SEPARATE ACCOUNT) |
|--------|--------------------------------------------------------------|

|   | AND |
|--------|-----|

|   | ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA |
|--------|-------------------------------------------------|

|   | (ALLIANZ LIFE, WE, US, OUR) |
|--------|-----------------------------|

|   | JULY 30, 2012 |
|--------|---------------|

|   | TABLE OF CONTENTS |
|--------|-------------------|

| Allianz Life…………………………………………………………….     | 2 | Annuity Purchases by Nonresident Aliens and Foreign                                                                                     |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---|-----------------------------------------------------------------------------------------------------------------------------------------|--------|
| Experts……………………………………………………..…………. | 2 |    Corporations……………………………………… | 8      |
| Legal Opinions………………………………………………………..                | 2 | Income Tax Withholding…………………………….                                    | 8      |
| Distributor……………………………………………………………..     | 2 | Multiple Contracts……………………………………                    | 8      |
| Federal Tax Status…………………………………………….……..                         | 3 | Partial 1035 Exchanges…………………………….                                    | 9      |
| Annuity Contracts in General…………………………..……….                                                         | 3 | Assignments, Pledges and Gratuitous Transfers…                                                                                    | 9      |
| Taxation of Annuities in General…………………………….….                                                             | 3 | Death Benefits……………………………………….                | 9      |
| Qualified Contracts……………………………..………………..                                     | 3 | Federal Estate Taxes………………………………..                              | 9      |
| Purchasing a Qualified Contract………………………………..                                                              | 5 | Generation-Skipping Transfer Tax…………………                                                       | 9      |
| Distributions – Qualified Contracts………………….………….                                                           | 5 | Foreign Tax Credits………………………………….                         | 9      |
| Distributions – Non-Qualified Contracts……………………….                                                                      | 6 | Possible Tax Law Changes…………………………                                          | 9      |
| Required Distributions……………………………………………                                      | 7 | Annuity Payments………………………………………..             | 10     |
| Withholding………………………………………………………..                   | 7 | Annuity Payment Options……………………………                                    | 10     |
| Diversification……………………………………………………..                      | 7 | Financial Statements…………………………………….                 | 10     |
| Owner Control…………………………………………………….                         | 8 | Appendix – Death of the Owner and/or Annuitant…                                                                             | 11     |
| Contracts Owned by Non-Individuals…………………………..                                                                         | 8 |                                                                                                                                    |   |

----

|   | ALLIANZ LIFE |
|--------|--------------|

|   | EXPERTS |
|--------|---------|

|   | LEGAL OPINIONS |
|--------|----------------|

|   | DISTRIBUTOR |
|--------|-------------|

| Firm Name                   |
|-----------------------------|
| LPL Financial Network       |
| The Advisor Group Network   |
| Wells Fargo Network         |
| National Planning Holdings  |
| HD Vest Investment Services |

----

|   | FEDERAL TAX STATUS |
|--------|--------------------|

----

| · | Traditional Individual Retirement Annuity. Section 408 of the Code permits eligible individuals to maintain Individual Retirement Annuities (IRAs). IRA contributions are limited each year to the lesser of a dollar amount specified in the Code or 100% of the amount of earned income included in the Owner’s income. You cannot make contributions once the Owner reaches age 70½. Contributions may be tax deductible based on the Owner’s income. The limit on the amount contributed to an IRA does not apply to distributions from certain other types of qualified plans that are “rolled over” on a tax-deferred basis into an IRA. Purchasers of a Contract for use with IRAs have the right to revoke their purchase within seven days of the earlier of the establishment of the IRA or their purchase. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Roth IRA. Section 408A of the Code permits certain eligible individuals to contribute to a Roth IRA. Contributions to a Roth IRA are limited each year to the lesser of a dollar amount specified in the Code or 100% of the amount of earned income included in the Owner’s income. Contributions are also limited or prohibited if the Owner’s income is above certain limits. Contributions must be made in cash or as a rollover or transfer from another Roth IRA. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Conversions to a Roth IRA from a Traditional IRA or other eligible qualified retirement plan are permitted regardless of an individual’s income. A conversion to a Roth IRA results in a taxable event, but not a 10% federal penalty tax for early withdrawal if certain qualifications are met (please consult your tax adviser for more details). |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Distributions from a Roth IRA generally are not subject to income tax if the Roth IRA has been held for five years (starting with the year in which the first contribution is made to any Roth IRA) and the Owner satisfies a triggering event such as attaining age 59½, death, disability or a first time homebuyer (subject to a $10,000 lifetime limit). |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Distribution before satisfying the five year period or triggering event requirement may subject the distribution to ordinary income tax and the 10% federal penalty tax for early withdrawal. Please be aware that each Roth IRA conversion has its own five year holding period requirement. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Inherited IRA. The Code permits beneficiaries of investments that were issued under certain tax-qualified pension or retirement plans to directly transfer the death benefit from that investment into a variable annuity contract (Inherited IRA Contract). Inherited IRA Contracts must satisfy the required minimum distribution rules that apply to a beneficiary. Inherited IRA Contracts are not currently available under this Contract. However, that may change in the future. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Simplified Employee Pension (SEP) IRA. Employers may establish Simplified Employee Pension (SEP) IRAs under Code Section 408(k) to provide IRA contributions on behalf of their employees. In addition to all of the general rules governing IRAs, such plans are subject to additional requirements and different contribution limits. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 1) | distributions made on or after the date you (or the Annuitant as applicable) reach age 59½; |
|----|--------------------------------------------------------------------------------------------------|

| 2) | distributions following your death or disability (or the Annuitant as applicable) (for this purpose disability is as defined in Section 72(m)(7) of the Code); |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3) | after separation from service, paid in a series of substantially equal payments made annually (or more frequently) under a lifetime annuity; |
|----|----------------------------------------------------------------------------------------------------------------------------------------------|

| 4) | distributions made to you to the extent such distributions do not exceed the amount allowed as a deduction under Code Section 213 for amounts paid during the tax year for medical care; |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5) | distributions made on account of an IRS levy upon the Qualified Contract; |
|----|---------------------------------------------------------------------------|

| 6) | distributions from an IRA for the purchase of medical insurance (as described in Section 213(d)(1)(D) of the Code) for you and your spouse and dependents if you have received unemployment compensation for at least 12 weeks (this exception will no longer apply after you have been re-employed for at least 60 days); |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7) | distributions from an IRA made to you, to the extent such distributions do not exceed your qualified higher education expenses (as defined in Section 72(t)(7) of the Code) for the tax year; |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8) | distributions from an IRA which are qualified first-time homebuyer distributions (as defined in Section 72(t)(8) of the Code); |
|----|--------------------------------------------------------------------------------------------------------------------------------|

| 9) | distributions made to an alternate Payee pursuant to a qualified domestic relations order (does not apply to an IRA); and |
|----|---------------------------------------------------------------------------------------------------------------------------|

| 10) | a reservist called to active duty during the period between September 11, 2001 and December 31, 2007, for a period in excess of 179 days (or for an indefinite period), distributions from IRAs or amounts attributable to elective deferrals under a 401(k) plan made during such active period. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 1) | paid on or after you reach age 59½; |
|----|------------------------------------------|

| 2) | paid after you die; |
|----|---------------------|

| 3) | paid if you become totally disabled (as that term is defined in Section 72(m)(7) of the Code); |
|----|------------------------------------------------------------------------------------------------|

| 4) | paid in a series of substantially equal payments made annually (or more frequently) under a lifetime annuity; |
|----|---------------------------------------------------------------------------------------------------------------|

| 5) | paid as annuity payments under an immediate annuity; or |
|----|---------------------------------------------------------|

| 6) | that come from Purchase Payments made before August 14, 1982. |
|----|---------------------------------------------------------------|

----

----

| · | 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 ten years or more; or |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | required minimum distributions; or |
|--------|------------------------------------|

| · | any part of a distribution not included in gross income (for example, returns of after-tax contributions); or |
|--------|---------------------------------------------------------------------------------------------------------------|

| · | hardship withdrawals. |
|--------|-----------------------|

----

|   | ANNUITY PAYMENTS |
|--------|------------------|

| · | Under Annuity Options 1 and 3, the death of the last surviving Annuitant. |
|--------|---------------------------------------------------------------------------|

| · | Under Annuity Options 2 and 4, the death of the last surviving Annuitant and expiration of the guaranteed period. |
|--------|-------------------------------------------------------------------------------------------------------------------|

| · | Under Annuity Option 5, the death of the Annuitant and payment of any lump sum refund. |
|--------|----------------------------------------------------------------------------------------|

| · | When the Contract ends. |
|--------|-------------------------|

----

|   | FINANCIAL STATEMENTS |
|--------|----------------------|

----

|   | APPENDIX – DEATH OF THE OWNER AND/OR ANNUITANT |
|--------|------------------------------------------------------|

| UPON THE DEATH OF A SOLE OWNER                                |
|---------------------------------------------------------------|
| Action if the Contract is in the Accumulation orIncome Phases | Action if the Contract is in the Annuity Phase |
| ·                                                        | We pay a death benefit to the Beneficiary.(1) For a description of the payout options, see the “Death Benefit Payment Options” discussion in the prospectus, section 12, Death Benefit. | · | The Beneficiary becomes the Owner. |
| ·                                                        | If the deceased was not an Annuitant, Annuity Payments to the Payee continue. No death benefit is payable. |
| ·                                                        | If you are receiving Lifetime Income Payments and you selected: | · | If the deceased was the only surviving Annuitant, Annuity Payments to the Payee continue until that portion of theContract ends and are paid at least as rapidly as they were at the Annuitant’s death. For more information on when any portion of the Contract applied to Annuity Payments ends, see the Annuity Payment Options discussion in this SAI. No death benefit is payable under Annuity Options 1 or 3. However, there may be a lump sum available under Annuity Options 2, 4, or  5. For more information, see the Annuity Payment Options discussion in this SAI. |
|                                                          | – | single payments, payments end; or |
| –                                                       | joint payments, payments end unless the deceased Owner’s spouse continues the Contract. If the surviving spouse continues the Contract after the Benefit Election Date, then joint payments continue at the prior amount, or higher if applicable. |
|                                                          |   |
| ·                                                        | If the deceased was an Annuitant and there is a surviving joint Annuitant, Annuity Payments to the Payee continue during the lifetime of the surviving joint Annuitant. No death benefit is payable. |
| (1)                                                           | If the Beneficiary is the deceased’s spouse, he or she may be able to continue the Contract instead of receiving a death benefit payout. If the Contract continues, we increase the Retirement Protection Account Value to equal the Quarterly Anniversary Value (and/or the Heritage Account Value to equal the Investment Base) if that amount is greater than the current Account Value, as of the end of the Business Day we receive in Good Order at our Service Center the death benefit payment election and due proof of death. |

----

| UPON THE DEATH OF A JOINT OWNER                               |
|---------------------------------------------------------------|
| Action if the Contract is in the Accumulation orIncome Phases | Action if the Contract is in the Annuity Phase |
| ·                                                        | The surviving Joint Owner is the sole primary Beneficiary. If the Joint Owners were spouses there may also be contingent Beneficiaries. However, for tax reasons, we do not allow non-spousal Joint Owners to appoint contingent Beneficiaries. | · | The surviving Joint Owner becomes the sole Owner. |
| ·                                                        | If the deceased was not an Annuitant, Annuity Payments to the Payee continue. No death benefit is payable. |
| ·                                                        | We pay a death benefit to the surviving Joint Owner.(1) For a description of the payout options available, see the “Death Benefit Payment Options” discussion in the prospectus, section 12, Death Benefit. | · | If the deceased was the only surviving Annuitant, Annuity Payments to the Payee continue until that portion ofthe Contract ends and are paid at least as rapidly as they were at the Annuitant’s death. For more information on when any portion of the Contract applied to Annuity Payments ends, see the Annuity Payment Options discussion in this SAI. No death benefit is payable under Annuity Options 1 or 3. However, there may be a lump sum available under Annuity Options 2, 4, or  5. For more information, see the Annuity Payment Options discussion in this SAI. |
| ·                                                        | If you are receiving Lifetime Income Payments and you selected: |
| –                                                       | single payments and the Joint Owners were not spouses, payments end even if the Covered Person is still alive; |
| –                                                       | single payments and the Joint Owners were spouses, payments end unless the surviving spouse is also the Covered Person and he or she continues the Contract;(2) or |
| –                                                       | joint payments, payments end unless the surviving spouse is also the Joint Owner and he or she continues the Contract.(2) | · | If the deceased was an Annuitant and there is a surviving joint Annuitant, Annuity Payments to the Payee continue during the lifetime of the surviving joint Annuitant. No death benefit is payable. |
| (1)                                                           | If the surviving Joint Owner is the deceased’s spouse, he or she may be able to continue the Contract instead of receiving a death benefit payout. If the Contract continues, we increase the Retirement Protection Account Value to equal the Quarterly Anniversary Value (and/or the Heritage Account Value to equal the Investment Base) if that amount is greater than the current Account Value, as of the end of the Business Day we receive in Good Order at our Service Center the death benefit payment election and due proof of death. If both Joint Owners die before we pay the death benefit, we pay any contingent Beneficiaries, or the estate of the Joint Owner who died last if there are no contingent Beneficiaries. |
| (2)                                                           | If the surviving spouse continues the Contract after the Benefit Election Date, then Lifetime Income Payments continue at the prior amount. For joint Lifetime Income Payments, the annual maximum payment may increase based on the age of the surviving Covered Person and the current Retirement Protection Account Value. |

----

| UPON THE DEATH OF THE SOLE ANNUITANT                          |
|---------------------------------------------------------------|
| Action if the Contract is in the Accumulation orIncome Phases | Action if the Contract is in the Annuity Phase |
| ·                                                        | If the Contract is owned by a non-individual (for example, a qualified plan or a trust), we treat the death of the Annuitant as the death of an Owner; we pay the Beneficiary(1) a death benefit, and a new Annuitant cannot be named. If you selected single Lifetime Income Payments, payments end. If you selected joint Lifetime Income Payments, payments end unless the deceased Annuitant’s spouse continues the Contract. | · | Annuity Payments to the Payee continue until that portion of the Contract ends and are paid at least as rapidly as they were at the Annuitant’s death. For more information on when any portion of the Contract applied to Annuity Payments ends, see the Annuity Payment Options discussion in this SAI. No death benefit is payable under Annuity Options 1 or 3. However, there may be a lump sum available under Annuity Options 2, 4, or  5. For more information, see the Annuity Payment Options discussion in this SAI. |
| ·                                                        | If the deceased Annuitant was not an Owner, and the Contract is owned only by an individual(s), we do not pay a death benefit. The Owner can name a new Annuitant subject to our approval. |
| ·                                                        | If the deceased Annuitant was a sole Owner, we pay the Beneficiary(1) a death benefit. | · | If the deceased was a sole Owner, the Beneficiary becomes the Owner if the Contract continues. |
| ·                                                        | If the deceased Annuitant was a Joint Owner and there is a surviving Joint Owner, the surviving Joint Owner is the sole primary Beneficiary. If the Joint Owners were spouses, there may also be contingent Beneficiaries. However, for tax reasons, we do not allow non-spousal Joint Owners to appoint contingent Beneficiaries. We pay a death benefit to the surviving Joint Owner.(2) | · | If the deceased was a Joint Owner, the surviving Joint Owner becomes the sole Owner if the Contract continues. |
| ·                                                        | If you are receiving Lifetime Income Payments and you selected: |
| –                                                       | single payments and the Contract is solely owned or owned by a non-individual, payments end; |
| –                                                       | single payments and the Contract is jointly owned by non-spouses, payments end, even if the Covered Person is still alive; |
| –                                                       | single payments and the Contract is jointly owned by spouses, payments end, unless the surviving spouse is also the Covered Person and they elect to continue the Contract;(3) or |
| –                                                       | joint payments, payments end, unless the surviving spouse continues the Contract.(3) |
| ·                                                        | For a description of the payout options, see the “Death Benefit Payment Options” discussion in the prospectus, section 12, Death Benefit. |
| (1)                                                           | If the Beneficiary is the deceased’s spouse, he or she may be able to continue the Contract instead of receiving a death benefit payout. If the Contract continues, we increase the Retirement Protection Account Value to equal the Quarterly Anniversary Value (and/or the Heritage Account Value to equal the Investment Base) if that amount is greater than the current Account Value, as of the end of the Business Day we receive in Good Order at our Service Center the death benefit payment election and due proof of death. If the deceased was the Annuitant and the Owner was a non-individual, the surviving spouse becomes the new Owner upon Contract continuation. |
| (2)                                                           | If the surviving Joint Owner is the deceased’s spouse, he or she may be able to continue the Contract instead of receiving a death benefit payout. If the Contract continues, we increase the Retirement Protection Account Value to equal the Quarterly Anniversary Value (and/or the Heritage Account Value to equal the Investment Base) if that amount is greater than the current Account Value, as of the end of the Business Day we receive in Good Order at our Service Center the death benefit payment election and due proof of death. If both Joint Owners die before we pay the death benefit, we pay any contingent Beneficiaries, or the estate of the Joint Owner who died last if there are no contingent Beneficiaries. |
| (3)                                                           | If the surviving spouse continues the Contract after the Benefit Election Date, then Lifetime Income Payments continue at the prior amount. For joint Lifetime Income Payments, the annual maximum payment may increase based on the age of the surviving Covered Person and the current Retirement Protection Account Value. |

----

| UPON THE DEATH OF THE ANNUITANT AND THERE IS A SURVIVING JOINT ANNUITANT(NOTE: We only allow you to add a joint Annuitant on the Annuity Date.) |
|-------------------------------------------------------------------------------------------------------------------------------------------------|
| ·                                                                                                                                          | Only Annuity Options 3 and 4 allow joint Annuitants. Under Annuity Options 3 and 4, Annuity Payments to the Payee continue during the lifetime of the surviving joint Annuitant and, for Annuity Option 4, during any remaining specified period of time. For more information, see the Annuity Payment Options discussion in this SAI. | · | No death benefit is payable. |
| ·                                                                                                                                          | If the deceased was a sole Owner, the Beneficiary becomes the Owner. |
| ·                                                                                                                                          | If the deceased was a Joint Owner, the surviving Joint Owner becomes the sole Owner. |

----

|   | PART C - OTHER INFORMATION |
|--------|----------------------------|

| a.                                                                                                                                                                                                                                                          | Financial Statements                                                                                                                                                                                                                                                           |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| The following financial statements of the Company are incorporated by reference as exhibit EX-99.A. from Post-Effective Amendment No. 7 to Registrant’s Form N-4 (File Nos. 333-171427 and 811-05618) electronically filed on April 6, 2012.          |
| 1.                                                                                                                                                                                                                                                          | Report of Independent Registered Public Accounting Firm                                                                                                                                                                                                                        |
| 2.                                                                                                                                                                                                                                                          | Consolidated Balance Sheets – December 31, 2011 and 2010                                                                                                                                                                                                                 |
| 3.                                                                                                                                                                                                                                                          | Consolidated Statements of Operations – Years ended December 31, 2011, 2010, and 2009                                                                                                                                                                                    |
| 4.                                                                                                                                                                                                                                                          | Consolidated Statements of Comprehensive Income – Years ended December 31, 2011, 2010, and 2009                                                                                                                                                                          |
| 5.                                                                                                                                                                                                                                                          | Consolidated Statements of Stockholder's Equity – Years ended December 31, 2011, 2010, and 2009                                                                                                                                                                          |
| 6.                                                                                                                                                                                                                                                          | Consolidated Statements of Cash Flows – Years ended December 31, 2011, 2010, and 2009                                                                                                                                                                                    |
| 7.                                                                                                                                                                                                                                                          | Notes to Consolidated Financial Statements – December 31, 2011 and 2010                                                                                                                                                                                                  |
| 8.                                                                                                                                                                                                                                                          | Supplemental Schedules:                                                                                                                                                                                                                                                        |
|                                                                                                                                                                                                                                                        | –                                                                                                                                                                                                                                                                        | Schedule I – Summary of Investments – Other than Investments in Related Parties |
|                                                                                                                                                                                                                                                        | –                                                                                                                                                                                                                                                                        | Schedule II – Supplementary Insurance Information |
|                                                                                                                                                                                                                                                        | –                                                                                                                                                                                                                                                                        | Schedule III – Reinsurance |
| The following financial statements of the Variable Account are incorporated by reference as exhibit EX-99.A. from Post-Effective Amendment No. 7 to Registrant’s Form N-4 (File Nos. 333-171427 and 811-05618) electronically filed on April 6, 2012. |
| 1.                                                                                                                                                                                                                                                          | Report of Independent Registered Public Accounting Firm                                                                                                                                                                                                                        |
| 2.                                                                                                                                                                                                                                                          | Statements of Assets and Liabilities – December 31, 2011                                                                                                                                                                                                                 |
| 3.                                                                                                                                                                                                                                                          | Statements of Operations – For the year ended December 31, 2011                                                                                                                                                                                                          |
| 4.                                                                                                                                                                                                                                                          | Statements of Changes in Net Assets – For the year ended December 31, 2011 and 2010                                                                                                                                                                                      |
| 5.                                                                                                                                                                                                                                                          | Notes to the Financial Statements – December 31, 2011                                                                                                                                                                                                                    |
| b.                                                                                                                                                                                                                                                          | Exhibits                                                                                                                                                                                                                                                                       |
| 1.                                                                                                                                                                                                                                                          | Resolution of Board of Directors of the Company authorizing the establishment of the Separate Account, dated May 31, 1985 incorporated by reference as exhibit EX-99.B1. from Registrant's Form N-4 (File Nos. 333-06709 and 811-05618) electronically filed on June 25, 1996. |
| 2.                                                                                                                                                                                                                                                          | Not Applicable                                                                                                                                                                                                                                                                 |
| 3.                                                                                                                                                                                                                                                          | a.                                                                                                                                                                                                                                                                             | Principal Underwriter Agreement by and between North American Life and Casualty Company on behalf of NALAC Financial Plans, Inc. dated September 14, 1988 incorporated by reference as exhibit EX-99.B3.a. from Pre-Effective Amendment No.1 to Registrant's Form N-4 (File Nos. 333-06709 and 811-05618) electronically filed on December 13, 1996.(North American Life and Casualty Company is the predecessor to Allianz Life Insurance Company of North America. NALAC Financial Plans, Inc., is the predecessor to USAllianz Investor Services, LLC, which is the predecessor to Allianz Life Financial Services, LLC.) |
|                                                                                                                                                                                                                                                        | b.                                                                                                                                                                                                                                                                             | Broker-Dealer Agreement (amended and restated) between Allianz Life Insurance Company of North America and Allianz Life Financial Services, LLC dated June 1, 2010  incorporated by reference as exhibit EX-99.B3.b. from Pre-Effective Amendment No.1 to Registrant's Form N-4 (File Nos. 333-166408 and 811-05618) electronically filed on September 24, 2010. |
|                                                                                                                                                                                                                                                        | c.                                                                                                                                                                                                                                                                             | The current specimen of the selling agreement between Allianz Life Financial Services, LLC, the principal underwriter for the Contracts, and retail brokers which offer and sell the Contracts to the public is incorporated by reference as exhibit EX-99.B3.b. from the initial Registration Statement to Registrant's Form N-4 (File Nos. 333-134267 and 811-05618) electronically filed on May 19, 2006.The underwriter has executed versions of the agreement with approximately 2,100 retail brokers. |
| 4.                                                                                                                                                                                                                                                          | a.*                                                                                                                                                                                                                                                                            | Individual Variable Annuity Contract-L40537 |
|                                                                                                                                                                                                                                                        | b.*                                                                                                                                                                                                                                                                            | Contract Schedule pages-S40861, S40865, S40866 |
|                                                                                                                                                                                                                                                        | c.*                                                                                                                                                                                                                                                                            | Portfolio Choice Account Rider-S40862 |
|                                                                                                                                                                                                                                                        | d.*                                                                                                                                                                                                                                                                            | Heritage Account Rider-S40862 |
|                                                                                                                                                                                                                                                        | e.*                                                                                                                                                                                                                                                                            | Retirement Protection Account Rider-S40864 |
| 5.                                                                                                                                                                                                                                                          | a.*                                                                                                                                                                                                                                                                            | Variable Annuity Application-F80000 |
| 6.                                                                                                                                                                                                                                                          | (i).                                                                                                                                                                                                                                                                           | The Restated Articles of Incorporation of the Company (as amended August 1, 2006) incorporated by reference as exhibit EX-99.B6.(i). from Pre-Effective Amendment No.1 to Registrant's Form N-4 (File Nos. 333-166408 and 811-05618) electronically filed on September 24, 2010. |

----

|   | (ii).          | The Restated Bylaws of the Company (as amended August 1, 2006) incorporated by reference as exhibit EX-99.B6.(ii). from Pre-Effective Amendment No.1 to Registrant's Form N-4 (File Nos. 333-166408 and 811-05618) electronically filed on September 24, 2010.                                                                                                                                                                                                                                     |
|--------|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 7.     | Not Applicable |
| 8.     | a.             | 22c-2 Agreements incorporated by reference as exhibit EX-99.B8.a. from Post-Effective Amendment No. 20 to Registrant's Form N-4 (File Nos. 333-82329 and 811-05618) electronically filed on April 24, 2008.                                                                                                                                                                                                                                                                                        |
|   | b.             | 22c-2 Agreement-BlackRock Distributors, Inc. incorporated by reference as exhibit EX-99.B8.b. from Post-Effective Amendment No. 14 to Registrant's Form N-4 (File Nos. 333-139701 and 811-05618) electronically filed on April 3, 2009.                                                                                                                                                                                                                                                            |
|   | c.*            | 22c-2 Agreements for Waddell & Reed, Inc.,                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | d.             | Participation Agreement between BlackRock Series Fund, Inc., BlackRock Distributors, Inc., Allianz Life Insurance Co. of North America, and Allianz Life Financial Services, LLC, dated May 1, 2008 incorporated by reference as exhibit EX-99.B8.c. from Post-Effective Amendment No. 14 to Registrant's Form N-4 (File Nos. 333-139701 and 811-05618) electronically filed on April 3, 2009.                                                                                                     |
|   | e.             | Administrative Services Agreement between BlackRock Advisors, LLC and Allianz Life, dated May 1, 2008 incorporated by reference as exhibit EX-99.B8.d. from Post-Effective Amendment No. 14 to Registrant's Form N-4 (File Nos. 333-139701 and 811-05618) electronically filed on April 3, 2009.                                                                                                                                                                                                   |
|   | f.             | Administrative Services Agreement between Franklin Templeton Services LLC and Allianz Life Insurance Company of North America, dated 10/1/2003 incorporated by reference as exhibit EX-99.B8.ac. from the initial Registration Statement to Registrant's Form N-4 (File Nos. 333-134267 and 811-05618) electronically filed on May 19, 2006.                                                                                                                                                       |
|   | g.             | Amendment to Administrative Services Agreement between Franklin Templeton Services LLC and Allianz Life Insurance Company of North America, dated 8/08/2008 incorporated by reference as exhibit EX-99.B8.h. from Post-Effective Amendment No. 14 to Registrant's Form N-4 (File Nos. 333-139701 and 811-05618) electronically filed on April 3, 2009.                                                                                                                                             |
|   | h.             | Participation Agreement between Franklin Templeton Variable Insurance Products Trust, Franklin/Templeton Distributors, Inc., Allianz Life Insurance Company of North America and USAllianz Investor Services, LLC (the predecessor to Allianz Life Financial Services, LLC.), and dated 10/1/2003 incorporated by reference as exhibit EX-99.B8.h. from Post-Effective Amendment No. 18 to Registrant's Form N-4 (File Nos. 333-82329 and 811-05618) electronically filed on April 23, 2007.       |
|   | i.             | Amendment to Participation Agreement between Franklin Templeton Variable Insurance Products Trust, Franklin/Templeton Distributors, Inc., Allianz Life Insurance Company of North America and USAllianz Investor Services, LLC (the predecessor to Allianz Life Financial Services, LLC.), dated 5/1/08 incorporated by reference as exhibit EX-99.B8.j. from Post-Effective Amendment No. 14 to Registrant's Form N-4 (File Nos. 333-139701 and 811-05618) electronically filed on April 3, 2009. |
|   | j.             | Participation Agreement between Allianz Life Insurance Company of North America, PIMCO Variable Insurance Trust, and PIMCO Funds Distributors LLC, dated 12/1/1999 incorporated by reference as exhibit EX-99.B8.i. from the initial Registration Statement to Registrant's Form N-4 (File Nos. 333-134267 and 811-05618) electronically filed on May 19, 2006.                                                                                                                                    |
|   | k.             | Amendments to Participation Agreement between Allianz Life Insurance Company of North America, PIMCO Variable Insurance Trust, and PIMCO Funds Distributors LLC, dated 4/1/00, 11/5/01, 5/1/02, 5/1/03, 4/30/04, 4/29/05 incorporated by reference as exhibit EX-99.B8.w. from Post-Effective Amendment No. 18 to Registrant's Form N-4 (File Nos. 333-82329 and 811-05618) electronically filed on April 23, 2007.                                                                                |
|   | l.             | Amendment dated May 1, 2011 to Investor Services Agreement between Allianz Life Insurance Company of North America and Pacific Investment Management Company dated June 1, 2009 incorporated by reference as exhibit EX-99.B8.n. from Post-Effective Amendment No. 25 to Registrant’s Form N-4 (File Nos. 333-139701 and 811-05618) electronically filed on April 26, 2011.                                                                                                                  |
|   | m.             | Amendment dated May 1, 2011 to Participation Agreement between Allianz Life Insurance Company of North America, PIMCO Variable Insurance Trust and PIMCO Investments LLC (formerly Allianz Global Investors Distributiors LLC) dated December 1, 1999 incorporated by reference as exhibit EX-99.B8.q. from Post-Effective Amendment No. 25 to Registrant’s Form N-4 (File Nos. 333-139701 and 811-05618) electronically filed on April 26, 2011.                                            |
|   | n.             | Amendment dated April 30, 2012 to Participation Agreement between Allianz Life Insurance Company of North America, PIMCO Variable Insurance Trust and PIMCO Investments LLC (formerly Allianz Global Investors Distributiors LLC) dated December 1, 1999 incorporated by reference as exhibit EX-99.B8.q. from Post-Effective Amendment No. 7 to Registrant’s Form N-4 (File Nos. 333-171427 and 811-05618) electronically filed on April 6, 2012.                                           |
|   | o.             | Investor Services Agreement between Pacific Investment Management Company (PIMCO) and Allianz Life Insurance Company of North America, dated June 1, 2009 and Amendment dated 5-1-2011 incorporated by reference as exhibit EX-99.B8.t. from Post-Effective Amendment No. 7 to Registrant’s Form N-4 (File Nos. 333-171427 and 811-05618) electronically filed on April 6, 2012.                                                                                                             |

----

|   | p.                                                       | Amendment  dated 4-30-2012 to Investor Services Agreement between Pacific Investment Management Company (PIMCO) and Allianz Life Insurance Company of North America, dated June 1, 2009 incorporated by reference as exhibit EX-99.B8.u. from Post-Effective Amendment No. 7 to Registrant’s Form N-4 (File Nos. 333-171427 and 811-05618) electronically filed on April 6, 2012. |
|--------|----------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | q.                                                       | Administrative Services Agreement between PIMCO Variable Insurance Trust and Allianz Life Insurance Company of North America dated December 4, 2009 and Amendment dated April 1, 2012 incorporated by reference as exhibit EX-99.B8.v. from Post-Effective Amendment No. 9 to Registrant’s Form N-4 (File Nos. 333-171427 and 811-05618) electronically filed on June 7, 2012.              |
|   | r.*                                                      | Participation Agreement between Allianz Life Insurance Company of North America, The Dreyfus Corporation, dated September 1, 2012                                                                                                                                                                                                                                                                 |
|   | s.*                                                      | Participation Agreement between Allianz Life Insurance Company of North America, Eaton Vance Variable Trust, and Eaton Vance Distributors, Inc., dated August 1, 2012                                                                                                                                                                                                                             |
|   | t.*                                                      | Shareholder Servicing Agreement between Allianz Life Insurance Company of North America and Eaton Vance Variable Trust, dated August 1, 2012.                                                                                                                                                                                                                                                     |
|   | u.                                                       | Participation Agreement & Amendment between Fidelity Distributors Corporation and Allianz Life Insurance Company of North America, dated 9-29-2010 incorporated by reference as exhibit EX-99.B8.q. from Post-Effective Amendment No. 17 to Registrant’s Form N-4 (File Nos. 333-145866 and 811-05618) electronically filed on December 20, 2010.                                       |
|   | v.*                                                      | Participation Agreement between Allianz Life Insurance Company of North America, JPMorgan Insurance Trust, JPMorgan Investment Advisers Inc., JPMorgan Investment Management Inc., and JPMorgan Funds Management Inc., dated April 24, 2009 and amendment to Participation Agreement dated July 1, 2012.                                                                                          |
|   | w.*                                                      | Service Agreement between Allianz Life Insurance Company of North America, JPMorgan Investment Advisers Inc., and JPMorgan Investment Management Inc., dated April 24, 2009.                                                                                                                                                                                                                      |
|   | x.*                                                      | Participation Agreement between Allianz Life Insurance Company of North America, Lazard Asset Management Securities LLC, and Lazard Retirement Series, Inc., dated 2012.                                                                                                                                                                                                                          |
|   | y.*                                                      | Service Agreement between Allianz Life Financial Services, LLC and Lazard Asset Management Securities, dated 2012.                                                                                                                                                                                                                                                                                |
|   | z.*                                                      | Participation Agreement between Allianz Life Insurance Company of North America, Legg Mason Partners Variable Equity/Income Trusts, Legg Mason Investor Serivces, LLC, and Legg Mason Partners Fund Advisor, LLC, dated 2012.                                                                                                                                                                     |
|   | aa.*                                                     | Administrative Services Agreement between Allianz Life Financial Services, LLC and Legg Mason Investor Serivces, LLC, dated 2012.                                                                                                                                                                                                                                                                 |
|   | ab.*                                                     | Participation Agreement between Allianz Life Insurance Company of North America, MFS Variable Insurance Trust, and MFS Fund Distributors, Inc., dated 2012.                                                                                                                                                                                                                                       |
|   | ac.*                                                     | Amendments to Participation Agreement and Investor Services Agreement between Allianz Life Insurance Company of North America and Pacific Investment Management Company LLC, dated September, 2012                                                                                                                                                                                                |
|   | ad.*                                                     | Participation Agreement between Allianz Life Insurance Company of North America and T. Rowe Price Investment Services, Inc., dated 2012.                                                                                                                                                                                                                                                          |
|   | ae.*                                                     | Participation Agreement between Allianz Life Insurance Company of North America, Waddell & Reed, Inc., and Ivy Funds Variable Insurance Portfolios, dated June 11, 2012.                                                                                                                                                                                                                      |
| 9.*    | Opinion and Consent of Counsel                           |
| 10.*   | Consent of Independent Registered Public Accounting Firm |
| 11.    | Not Applicable                                           |
| 12.    | Not Applicable                                           |
| 13.    | a.                                                       | Power of Attorney incorporated by reference as exhibit EX-99.B13.a. from the initial Registration Statement to Registrant's Form N-4 (File Nos. 333-180720 and 811-05618) electronically filed on April 13, 2012.                                                                                                                                                                                 |
|   |                                                     |
| *      | Filed herewith                                           |
|   |                                                     |

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| Unless noted otherwise, all officers and directors have the following principal business address: |
|---------------------------------------------------------------------------------------------------|
| 5701 Golden Hills Drive                                                                           |
| Minneapolis, MN 55416-1297                                                                        |
| The following are the Officers and Directors of the Company:                                      |
|                                                                                              |
| Name and Principal Business Address                                                               | Positions and Offices with Depositor |
| Walter R. White                                                                                   | Director, President and Chief Executive Officer |
| Giulio Terzariol                                                                                  | Director, Senior Vice President and Chief Financial Officer |
| Thomas P. Burns                                                                                   | Senior Vice President, Chief Distribution Officer |
| Neil H. McKay                                                                                     | Senior Vice President, Chief Actuary |
| Gretchen Cepek                                                                                    | Senior Vice President, Secretary and General Counsel |
| Carsten Quitter                                                                                   | Senior Vice President, Chief Investment Officer |
| Cathy Mahone                                                                                      | Senior Vice President, Chief Administrative Officer |
| Nancy E. Jones                                                                                    | Senior Vice President, Chief Marketing Officer |
| Patrick L. Nelson                                                                                 | Vice President, Chief Suitability Officer |
| Nicole A. Scanlon                                                                                 | Vice President, Controller |
| Gary C. Bhojwani                                                                                  | Director and Chairman of the Board |
| Michael P. Sullivan500 IDS Center80 South 8th StreetMinneapolis, MN 55402                         | Director |
| Dale E. Lauer14103 205th Ave. NEWoodinville, WA 98077                                             | Director |
| Marna C. Whittington2959 Barley MillYorklyn, DE 19736                                             | Director |

| The Bylaws of the Insurance Company provide:                     |
|------------------------------------------------------------------|
| ARTICLE XI. INDEMNIFICATION OF DIRECTORS, OFFICERS AND EMPLOYEES |
| SECTION 1. RIGHT TO INDEMNIFICATION:                             |
| (a)                                                              | Subject to the conditions of this Article and any conditions or limitations imposed by applicable law, the Corporation shall indemnify any employee, director or officer of the Corporation (an "Indemnified Person") who was, is, or in the sole opinion of the Corporation, may reasonably become a party to or otherwise involved in any Proceeding by reason of the fact that such Indemnified Person is or was: |
|                                                             | (i) | a director of the Corporation; or |
|                                                             | (ii) | acting in the course and scope of his or her duties as an officer or employee of the Corporation; or |
|                                                             | (iii) | rendering Professional Services at the request of and for the benefit of the Corporation; or |
|                                                             | (iv) | serving at the request of the Corporation as an officer, director, fiduciary or member of another corporation, association, committee, partnership, joint venture, trust, employee benefit plan or other enterprise (an "Outside Organization"). |
| (b)                                                              | Notwithstanding the foregoing, no officer, director or employee shall be indemnified pursuant to these bylaws under the following circumstances: |
|                                                             | (i) | in connection with a Proceeding initiated by such person, in his or her own personal capacity, unless such initiation was authorized by the Board of Directors; |
|                                                             | (ii) | if a court of competent jurisdiction finally determines that any indemnification hereunder is unlawful; |
|                                                             | (iii) | for acts or omissions involving intentional misconduct or knowing and culpable violation of law; |

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | (iv)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | for acts or omissions that the Indemnified Person believes to be contrary to the best interests of the Corporation or its shareholders or that involve the absence of good faith on the part of the Indemnified Person;                                                                                                                                         |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | (v)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | for any transaction for which the Indemnified Person derived an improper personal benefit;                                                                                                                                                                                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | (vi)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | for acts or omissions that show a reckless disregard for the Indemnified Person's duty to the Corporation or its shareholders in circumstances in which the Indemnified Person was aware or should have been aware, in the ordinary course of performing the Indemnified Person's duties, of the risk of serious injury to the Corporation or its shareholders; |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | (vii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | for acts or omissions that constitute an unexcused pattern of inattention that amounts to an abdication of the Indemnified Person's duties to the Corporation or its shareholders;                                                                                                                                                                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | (viii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | in circumstances where indemnification is prohibited by applicable law;                                                                                                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | (ix)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | in the case of service as an officer, director, fiduciary or member of an Outside Organization, where the Indemnified Person was aware or should have been aware that the conduct in question was outside the scope of the assignment as contemplated by the Corporation.                                                                                       |
| SECTION 2. SCOPE OF INDEMNIFICATION:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Indemnification provided pursuant to Section 1(a)(iv) shall be secondary and subordinate to indemnification or insurance provided to an Indemnified Person by an Outside Organization or other source, if any.                                                                                                                                                                                                                                                                                                                                       |
| (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Indemnification shall apply to all reasonable expenses, liability and losses, actually incurred or suffered by an Indemnified Person in connection with a Proceeding, including without limitation, attorneys' fees and any expenses of establishing a right to indemnification or advancement under this article, judgments, fines, ERISA excise taxes or penalties, amounts paid or to be paid in settlement and all interest, assessments and other charges paid or payable in connection with or in respect of such expense, liability and loss. |
| (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Such indemnification shall continue as to any Indemnified Person who has ceased to be an employee, director or officer of the Corporation and shall inure to the benefit of his or her heirs, estate, executors and administrators.                                                                                                                                                                                                                                                                                                                  |
| SECTION 3. DEFINITIONS:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | "Corporation" for the purpose of Article XI shall mean Allianz Life Insurance Company of North America and all of its subsidiaries.                                                                                                                                                                                                                                                                                                                                                                                                                  |
| (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | "Proceeding" shall mean any threatened, pending, or completed action, suit or proceeding whether civil, criminal, administrative, investigative or otherwise, including actions by or in the right of the Corporation to procure a judgment in its favor.                                                                                                                                                                                                                                                                                            |
| (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | "Professional Services" shall mean services rendered pursuant to (i) a professional actuarial designation, (ii) a license to engage in the practice of law issued by a State Bar Institution or (iii) a Certified Public Accountant designation issued by the American Institute of Certified Public Accountants.                                                                                                                                                                                                                                    |
| 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. |

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| a.                                                                                                                                                                                                                                                                                                                                                                                                       | Allianz Life Financial Services, LLC (previously 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 Allianz Life Financial Services, LLC. All officers and directors have the following principal business address: |
| 5701 Golden Hills Drive                                                                                                                                                                                                                                                                                                                                                                                  |
| Minneapolis, MN 55416-1297                                                                                                                                                                                                                                                                                                                                                                               |
|                                                                                                                                                                                                                                                                                                                                                                                                     |
| Name                                                                                                                                                                                                                                                                                                                                                                                                     | Positions and Offices with Underwriter                                                                                                                                                          |
| Robert DeChellis                                                                                                                                                                                                                                                                                                                                                                                         | Governor, Chief Executive Officer and President                                                                                                                                                 |
| Thomas Burns                                                                                                                                                                                                                                                                                                                                                                                             | Governor                                                                                                                                                                                        |
| Kristine Starkman                                                                                                                                                                                                                                                                                                                                                                                        | Chief Compliance Officer                                                                                                                                                                        |
| Jasmine Jirele                                                                                                                                                                                                                                                                                                                                                                                           | Chief Operating Officer and Senior Vice President                                                                                                                                               |
| Angie Forsman                                                                                                                                                                                                                                                                                                                                                                                            | Vice President, Chief Financial Officer                                                                                                                                                         |
| Robert Densmore                                                                                                                                                                                                                                                                                                                                                                                          | Senior Vice President                                                                                                                                                                           |
| Corey Walther                                                                                                                                                                                                                                                                                                                                                                                            | Senior Vice President                                                                                                                                                                           |
| Michael Brandriet                                                                                                                                                                                                                                                                                                                                                                                        | Senior Vice President                                                                                                                                                                           |
| Jennifer Sosniecki                                                                                                                                                                                                                                                                                                                                                                                       | Money Laundering Prevention Officer                                                                                                                                                             |
| Michael G. Brennan                                                                                                                                                                                                                                                                                                                                                                                       | Vice President, Compliance                                                                                                                                                                      |
| Steve Miller                                                                                                                                                                                                                                                                                                                                                                                             | Assistant Vice President                                                                                                                                                                        |
| Theodore C. Cadwell, Jr.                                                                                                                                                                                                                                                                                                                                                                                 | Secretary                                                                                                                                                                                       |
| Tracy M. Hardy                                                                                                                                                                                                                                                                                                                                                                                           | Assistant Secretary                                                                                                                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                            |
| c.                                                                                                                                                                                                                                                                                                                                                                                                       | For the period 1-1-2011 to 12-31-2011                                                                                                                                                           |
| Name of Principal Underwriter                                                                                                                                                                                                                                                                                                                                                                            | Net Underwriting Discounts and Commissions                                                                                                                                                      | Compensation on Redemption | Brokerage Commissions | Compensation |
| Allianz Life Financial Services, LLC                                                                                                                                                                                                                                                                                                                                                                     | $264,909,554.57                                                                                                                                                                                 | $0 | $0 | $0 |
| The $264,909,554.57 that Allianz Life Financial Services, LLC received from Allianz Life as commissions on the sale of Contracts issued under Allianz Life Variable Account B was subsequently paid entirely to the third party broker/dealers that perform the retail distribution of the Contracts and, therefore, no commission or compensation was retained by Allianz Life Financial Services, LLC. |

| 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. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 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. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Signature             | Title                                                       |
|-----------------------|-------------------------------------------------------------|
| Gary C. Bhojwani*     | Director and Chairman of the Board                          |
| Walter R. White*      | Director, President & Chief Executive Officer           |
| Giulio Terzariol*     | Director, Senior Vice President and Chief Financial Officer |
| Michael P. Sullivan*  | Director                                                    |
| Dale E. Lauer*        | Director                                                    |
| Marna C. Whittington* | Director                                                    |

| * | By Power of Attorney incorporated by reference as exhibit EX-99.B13.a. from the initial Registration Statement to Registrant's Form N-4 (File Nos. 333-180720 and 811-05618) electronically filed on April 13, 2012. |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| INDEX TO EXHIBITS |
|-------------------|
| EX-99.B4.a.       | Individual Variable Annuity Contract-L40537 |
| EX-99.B4.b.       | Contract Schedule pages-S40861, S40865, S40866 |
| EX-99.B4.c.       | Portfolio Choice Account Rider-S40862 |
| EX-99.B4.d.       | Heritage Account Rider-S40862 |
| EX-99.B4.e.       | Retirement Protection Account Rider-S40864 |
| EX-99.B5.a.       | Variable Annuity Application-F80000 |
| EX-99.B8.c.       | 22c-2 Agreements-Waddell & Reed |
| EX-99.B8.r.       | Participation Agreement-Dreyfus |
| EX-99.B8.s.       | Participation Agreement-Eaton Vance |
| EX-99.B8.t.       | Service Agreement-Eaton Vance |
| EX-99.B8.v.       | Participation Agreement-JPMorgan |
| EX-99.B8.w.       | Service Agreement-JPMorgan |
| EX-99.B8.x.       | Participation Agreement-Lazard |
| EX-99.B8.y.       | Service Agreement-Lazard |
| EX-99.B8.z.       | Participation Agreement-Legg Mason |
| EX-99.B8.aa.      | Service Agreement-Legg Mason |
| EX-99.B8.ab.      | Participation Agreement-MFS |
| EX-99.B8.ac.      | Amendments to Participation Agreement-PIMCO |
| EX-99.B8.ad.      | Participation Agreement-T. Rowe Price |
| EX-99.B8.ae.      | Participation Agreement-Waddell & Reed |
| EX-99.B9.         | Opinion and Consent of Counsel |
| EX-99.B10.        | Consent of Independent Registered Public Accounting Firm |