| 485BPOS                                                                                                         | File Nos. 333-82329                                                                                            |
|-----------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------|
| Allianz Alterity                                                                                                | 811-05618                                                                                                      |
|                                                                                                            | Class I.D. C000007179                                                                                          |
|                                                                                                            | 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.                                                                                     |                                                                                                           |   |   |
| Post-Effective Amendment No.                                                                                    | 25                                                                                                             |   | X |
| and/or                                                                                                          |                                                                                                           |
| REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940                                                 |                                                                                                           |
| Amendment No.                                                                                                   | 374                                                                                                            |   | 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)                                                                         |
|                                                                                                            |
| It is proposed that this filing will become effective (check the appropriate box):                              |
|                                                                                                            | immediately upon filing pursuant to paragraph (b) of Rule 485                                                  |
| x                                                                                                               | on April 29, 2013  pursuant to paragraph (b) of Rule 485                                             |
|                                                                                                            | 60 days after filing pursuant to paragraph (a)(1) of Rule 485                                                  |
|                                                                                                            | on (date) pursuant to paragraph (a)(1) of Rule 485                                                             |
| If appropriate, check the following:                                                                            |
|                                                                                                            | this post-effective amendment designates a new effective date for a previously filed post-effective amendment. |
| Approximate Date of the Proposed Public Offering: April 29, 2013                                                |
| Titles of Securities Being Registered: Individual Flexible Purchase Payment Variable Deferred Annuity Contracts |

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

| ALLIANZ FUND OF FUNDSAZL® Balanced Index Strategy FundAZL® Growth Index Strategy FundAZL MVP FusionSM Balanced FundAZL MVP FusionSM Conservative FundAZL MVP FusionSM Moderate FundBLACKROCKAZL® Money Market FundBlackRock Global Allocation V.I. FundFIDELITYFidelity VIP FundsManager 50% PortfolioFidelity VIP FundsManager 60% Portfolio | FRANKLIN TEMPLETONAZL® Franklin Templeton Founding Strategy Plus FundFranklin High Income Securities FundFranklin Income Securities FundFranklin U.S. Government FundTempleton Global Bond Securities FundGATEWAYAZL® Gateway Fund | INVESCOAZL® Invesco Equity and Income FundPIMCOPIMCO VIT All Asset PortfolioPIMCO VIT Emerging Markets Bond Portfolio PIMCO VIT Global Advantage Strategy Bond PortfolioPIMCO VIT Global Bond Portfolio (Unhedged)PIMCO VIT Global Multi-Asset PortfolioPIMCO VIT High Yield PortfolioPIMCO VIT Real Return PortfolioPIMCO VIT Total Return PortfolioPIMCO VIT Unconstrained Bond Portfolio |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| Glossary   | 3                                                    | 7.     | Expenses                         | 41                                            |
|------------|------------------------------------------------------|--------|----------------------------------|-----------------------------------------------|
| Fee Tables | 5                                                    |   | Separate Account Annual Expenses | 41                                            |
|       | Contract Owner Transaction Expenses                  | 5      |                             | Contract Maintenance Charge                   | 42 |
|       | Contract Owner Periodic Expenses                     | 6      |                             | Withdrawal Charge                             | 43 |
|       | Annual Operating Expenses of the Investment Options  | 7      |                             | Transfer Fee                                  | 45 |
|       | Examples                                             | 8      |                             | Premium Tax                                   | 45 |
| 1.         | The Variable Annuity Contract                        | 9      |                             | Income Tax                                    | 45 |
|       | Ownership                                            | 12     |                             | Investment Option Expenses                    | 45 |
| 2.         | Purchase                                             | 12     | 8.                               | Taxes                                         | 45 |
|       | Purchase Payments                                    | 13     |                             | Annuity Contracts in General                  | 46 |
|       | Automatic Investment Plan (AIP)                      | 13     |                             | Qualified Contracts                           | 46 |
|       | Allocation of Purchase Payments                      | 14     |                             | Multiple Contracts                            | 47 |
|       | Tax-Free Section 1035 Exchanges                      | 14     |                             | Partial 1035 Exchanges                        | 47 |
|       | Accumulation Units/ Computing the Contract Value     | 15     |                             | Distributions – Non-Qualified Contracts | 47 |
| 3.         | The Annuity Phase                                    | 15     |                             | Distributions – Qualified Contracts     | 48 |
|       | Income Date                                          | 15     |                             | Assignments, Pledges and Gratuitous Transfers | 49 |
|       | Traditional Annuity Payments                         | 15     |                             | Death Benefits                                | 49 |
|       | Annuity Options                                      | 16     |                             | Withholding                                   | 49 |
|       | Partial Annuitization                                | 19     |                             | Federal Estate Taxes                          | 49 |
| 4.         | Protected Retirement Income Made Easy:               |   |                             | Generation-Skipping Transfer Tax              | 50 |
|       | PRIME Plus Benefit                                   | 20     |                             | Foreign Tax Credits                           | 50 |
|       | Adding PRIME Plus Benefit To Your Contract           | 20     |                             | Annuity Purchases by Nonresident Aliens and   |   |
|       | Removing PRIME Plus Benefit From Your Contract       | 21     |                             | Foreign Corporations                          | 50 |
|       | Investment Option Allocation and Transfer            |   |                             | Possible Tax Law Changes                      | 50 |
|       | Restricitions Under PRIME Plus Benefit               | 21     |                             | Diversification                               | 50 |
|       | PB Value                                             | 23     |                             | Required Distributions                        | 50 |
|       | Using PRIME Plus Benefit                             | 26     | 9.                               | Access to Your Money                          | 51 |
|       | GPWB Payments                                        | 28     |                             | Partial Withdrawal Privilege                  | 52 |
|       | Taxation of GPWB Payments                            | 30     |                             | Waiver of Withdrawal Charge Benefits          | 52 |
|       | When GPWB Ends                                       | 30     |                             | Systematic Withdrawal Program                 | 53 |
|       | GMIB Payments                                        | 31     |                             | Minimum Distribution Program and Required     |   |
|       | Amount Used to Calculate GMIB Payments               | 31     |                             | Minimum Distribution (RMD) Payments           | 53 |
|       | Taxation of GMIB Payments                            | 31     |                             | Suspension of Payments or Transfers           | 53 |
|       | When GMIB Ends                                       | 32     | 10.                              | Death Benefit                                 | 54 |
|       | Required Minimum Distributions (RMDs) Under          |   |                             | Traditional Guaranteed Minimum Death Benefit  |   |
|       | Qualified Contracts with PRIME Plus Benefit          | 32     |                             | (Traditional GMDB)                            | 54 |
| 5.         | Investment Options                                   | 32     |                             | Enhanced Guaranteed Minimum Death Benefit     |   |
|       | Substitution and Limitation on Further Investments   | 36     |                             | (Enhanced GMDB)                               | 55 |
|       | Transfers Between Investment Options                 | 37     |                             | Earnings Protections Guaranteed Minimum Death |   |
|       | Excessive Trading and Market Timing                  | 38     |                             | Benefit ( Earnings Protections GMDB)          | 56 |
|       | Dollar Cost Averaging (DCA) Program                  | 40     |                             | When the Death Benefit Ends                   | 57 |
|       | Flexible Rebalancing                                 | 40     |                             | Death of the Owner and/or Annuitant Under     |   |
|       | Financial Advisers – Asset Allocation Programs | 40     |                             | All Other Contracts                           | 58 |
|       | Voting Privileges                                    | 41     |                             | Death Benefit Payment Options During the      |   |
| 6.         | Our General Account                                  | 41     |                             | Accumulation Phase                            | 61 |

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| 11.    | Other Information                                  | 62     | Appendix A – Condensed Financial Information    | 67                 |
|--------|----------------------------------------------------|--------|-------------------------------------------------------|--------------------|
|   | Allianz Life                                       | 62     | Appendix B – PB Value Calculation Examples      | 72                 |
|   | The Separate Account                               | 62     | Appendix C – GPWB Under PRIME Plus Benefit      | 74                 |
|   | Distribution                                       | 62     | Appendix D – Death Benefit Calculation Examples | 76                 |
|   | Additional Credits for Certain Groups              | 63     | Appendix E – Withdrawal Charge Examples         | 78                 |
|   | Administration/Allianz Service Center              | 64     | For Service or More Information                       | 80                 |
|   | Legal Proceedings                                  | 64     |                                                  | Our Service Center | 80 |
|   | Financial Statements                               | 64     |                                                  |               |   |
|   | Status Pursuant to Securities Exchange Act of 1934 | 64     |                                                  |               |   |
| 12.    | Table of Contents of the Statement of              |   |                                                  |               |   |
|   | Additional Information (SAI)                       | 64     |                                                  |               |   |
| 13.    | Privacy and Security Statement                     | 65     |                                                  |               |   |

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

| AIA     | = | Annual Increase Amount            |   | GPWB   | =      | Guaranteed Partial Withdrawal Benefit |
|---------|---|-----------------------------------|--------|--------|--------|---------------------------------------|
| CV Plus | = | Contract Value Plus               |   | MAV    | =      | Maximum Anniversary Value             |
| GMDB    | = | Guaranteed Minimum Death Benefit  |   | PRIME  | =      | Protected Retirement Income Made Easy |
| GMIB    | = | Guaranteed Minimum Income Benefit |   |   |   |                                  |

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

| Number of Complete Contract YearsSince We Received Your Purchase Payment | Charge |
|--------------------------------------------------------------------------|--------|
| 0                                                                        | 7%     |
| 1                                                                        | 6%     |
| 2                                                                        | 5%     |
| 3                                                                        | 4%     |
| 4                                                                        | 3%     |
| 5                                                                        | 2%     |
| 6 Contract Years or more                                                 | 0%     |

| Transfer Fee(3) …………………………………....         | $25        |
|------------------------------------------------------------------------------------------------------------------------------|------------|
| Premium Tax(4)   …………………………………. | 0% to 3.5% |
| (as a percentage of each Purchase Payment)                                                                                   |       |

| (1) | The partial withdrawal privilege for each Contract Year is equal to 12% of your total Purchase Payments, less any previous withdrawals taken during that Contract Year under the partial withdrawal privilege or as required minimum distribution payments. We do not deduct a withdrawal charge from amounts withdrawn under the partial withdrawal privilege. There is no partial withdrawal privilege after you exercise the GPWB (if applicable) or during the Annuity Phase. Any unused partial withdrawal privilege in one Contract Year carries over to the next Contract Year. For more details and additional information on other penalty-free withdrawal options, please see the discussion of the partial withdrawal privilege and other information that appears in section 9, Access to Your Money; and section 4, Protected Retirement Income Made Easy: PRIME Plus Benefit – GPWB Payments. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | The total amount under your Contract that is subject to a withdrawal charge is the Withdrawal Charge Basis. The Withdrawal Charge Basis is equal to the total Purchase Payments, less any Purchase Payments withdrawn (excluding any penalty-free withdrawals). |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | The first twelve transfers in a Contract Year are free. We count all transfers made in the same Business Day as one transfer. The following transfers are not subject to a transfer fee and do not count against any free transfers we allow: dollar cost averaging transfers, flexible rebalancing transfers, or the allocation and transfer restrictions for PRIME Plus Benefit. Currently, we deduct this fee only during the Accumulation Phase, but we reserve the right to deduct this fee during the Annuity Phase. For more information, please see section 7, Expenses – Transfer Fee. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | It is our current practice not to make deductions from the Contract Value to reimburse ourselves for premium tax that we pay, although we reserve the right to make such a deduction in the future. For more information, please see section 7, Expenses ­– Premium Tax. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Contract Maintenance Charge(5) ……………… | $40    |
|---------------------------------------------------------------------------|--------|
| (per Contract per year)                                                   |   |

|                     | Maximum and Current Chargesfor a Base Contract | Current Charges for a Contract withPRIME Plus Benefit(7),(8) |
|--------------------------|------------------------------------------------|--------------------------------------------------------------|
|                     | M&E Charge                                 | Admin.Charge                                                 | Total | M&E Charge | Admin.Charge | Total |
| Traditional GMDB         | 1.35%                                          | 0.15%                                                        | 1.50% | 2.05% | 0.15% | 2.20% |
| Enhanced GMDB            | 1.65%                                          | 0.15%                                                        | 1.80% | 2.25% | 0.15% | 2.40% |
| Earnings Protection GMDB | 1.65%                                          | 0.15%                                                        | 1.80% | 2.30% | 0.15% | 2.45% |

|                     | Maximum Charges(9)for a Contract withPRIME Plus Benefit |
|--------------------------|---------------------------------------------------------|
|                     | M&E Charge                                          | Admin.Charge | Total |
| Traditional GMDB         | 2.50%                                                   | 0.15% | 2.65% |
| Enhanced GMDB            | 2.70%                                                   | 0.15% | 2.85% |
| Earnings Protection GMDB | 2.75%                                                   | 0.15% | 2.90% |

| Contract Maintenance Charge(5) …………….. | $40    |
|----------------------------------------------------------------------|--------|
| (per Contract per year)                                              |   |

| M&E Charge(10)    | 1.35% |
|-----------------------|-------|
| Administrative Charge | 0.15% |
| Total                 | 1.50% |

| (5) | We waive the contract maintenance charge if the Contract Value is at least $100,000 at the time we are to deduct the charge. For more information, please see section 7, Expenses – Contract Maintenance Charge. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | The Enhanced GMDB, Earnings Protection GMDB and PRIME Plus Benefit may not be available in all states; check with your Financial Professional. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------|

| (7) | You can add PRIME Plus Benefit to your Contract once before age 76. The current charges apply if you add PRIME Plus Benefit or if you reset the 7% AIA. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8) | If you exercise the GPWB, the increased expenses associated with PRIME Plus Benefit continue until both the GPWB and GMIB terminate and the increased expenses associated with the Enhanced GMDB or the Earnings Protection GMDB (if applicable) continue as long as the Enhanced GMDB value or the Earnings Protection GMDB value is greater than zero. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (9) | This is the maximum charge we could impose if you add PRIME Plus Benefit or if you reset the 7% AIA. |
|-----|------------------------------------------------------------------------------------------------------|

| (10) | Because the Contract allows Partial Annuitization, it is possible for different portions of the Contract to be in both the Accumulation and Annuity Phases at the same time. It is also possible to have different M&E charges on different portions of the Contract at the same time if you request variable Traditional Annuity Payments under a Partial Annuitization. For more information, please see section 3, The Annuity Phase – Partial Annuitization. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                                                                                                                                       | Minimum | Maximum |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|---------|
| Total annual Investment Option operating expenses*(including management fees, distribution or 12b-1 fees,and other expenses) before fee waivers and expense reimbursements | 0.65%   | 1.65%   |

| * | Some of the Investment Options or their affiliates may also pay service fees to us or our affiliates. The amount of these fees may be different for each Investment Option. The maximum current fee is 0.25%. The amount of these fees, if deducted from Investment Option assets, is reflected in the above table. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | a) | Maximum charges* for a Contract that has the Earnings Protection GMDB and PRIME Plus Benefit (which carries the highest Separate Account annual expense of 2.90%). |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | Current charges for a Contract that has the Earnings Protection GMDB and PRIME Plus Benefit (which carries a Separate Account annual expense of 2.45%). |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c) | The Base Contract with the Traditional GMDB (which carries the lowest Separate Account annual expense |
|--------|----|-------------------------------------------------------------------------------------------------------|

|   | of 1.50%). |
|--------|------------|

| Total annual Investment Option operating expensesbefore any fee waivers or expense reimbursements of: |                   | 1 Year | 3 Years | 5 Years | 10 Years |
|-------------------------------------------------------------------------------------------------------|------------------------|--------|---------|---------|----------|
| 1. 65% (the maximum Investment Option operating expense)                                              | a)                     | $1,196 | $1,994  | $2,801  | $5,054   |
| b)                                                                                                    | $1,152                 | $1,867 | $2,597  | $4,689  |
| c)                                                                                                    | $1,058                 | $1,591 | $2,149  | $3,857  |
| 0.65% (the minimum Investment Option operating expense)                                               | a)                     | $1,098 | $1,708  | $2,340  | $4,218   |
| b)                                                                                                    | $1,053                 | $1,577 | $2,125  | $3,811  |
| c)                                                                                                    | $   958 | $1,293 | $1,654  | $2,883  |

| Total annual Investment Option operating expensesbefore any fee waivers or expense reimbursements of: |   | 1 Year                 | 3 Years | 5 Years | 10 Years |
|-------------------------------------------------------------------------------------------------------|--------|------------------------|---------|---------|----------|
| 1.65% (the maximum Investment Option operating expense)                                               | a)     | $496                   | $1,494  | $2,501  | $5,054   |
| b)                                                                                                    | $452   | $1,367                 | $2,297  | $4,689  |
| c)                                                                                                    | $358   | $1,091                 | $1,849  | $3,857  |
| 0.65% (the minimum Investment Option operating expense)                                               | a)     | $398                   | $1,208  | $2,040  | $4,218   |
| b)                                                                                                    | $353   | $1,077                 | $1,825  | $3,811  |
| c)                                                                                                    | $258   | $   793 | $1,354  | $2,883  |

| * | If you add PRIME Plus Benefit or if you reset the 7% AIA, your Separate Account annual expense may be less than this amount, but it cannot be greater than this amount. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ** | Traditional Annuity Payments are generally not available until after the second Contract Anniversary in most states. GMIB Payments are not available until seven Contract Years after: a) the date PRIME Plus Benefit was added to your Contract, or b) after the date of any 7% AIA reset. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| · | The Business Day before the Income Date if you take a Full Annuitization. |
|--------|---------------------------------------------------------------------------|

| · | The Business Day we process your request for a full withdrawal. |
|--------|-----------------------------------------------------------------|

| · | Upon the death of any Owner (or the Annuitant if the Contract is owned by a non-individual), the Accumulation Phase ends on the Business Day we first receive in Good Order at our Service Center the death benefit payment option and due proof of death, unless the spouse of the deceased continues the Contract. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| * | GMIB Partial Annuitizations are based on the PB Value. They are not available after you exercise the GPWB, or if the PB Value is less than the Contract Value. |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| · | the Accumulation Phase ends, |
|--------|------------------------------|

| · | the Annuity Phase, if any, ends and/or |
|--------|----------------------------------------|

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

| · | The withdrawal charge schedule. |
|--------|---------------------------------|

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

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

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

| · | Selection of certain assumed investment rates for variable Annuity Payments. |
|--------|------------------------------------------------------------------------------|

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

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| 2. | PURCHASE |
|----|----------|

| · | You can make additional Purchase Payments of $50 or more during the Accumulation Phase before you exercise the GPWB, if applicable. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------|

| · | You cannot make any additional Purchase Payments to the Contract after the Income Date that you take a Full Annuitization (including a required Full Annuitization on the maximum permitted Income Date) or after you exercise the GPWB. In certain states, additional Purchase Payments can only be made during the first Contract Year or may be otherwise restricted. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The maximum total amount we accept without our prior approval is $1 million (including amounts already invested in other Allianz Life variable annuities). |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

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

| · | there is a new withdrawal charge period for this Contract, |
|--------|------------------------------------------------------------|

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

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

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

| · | Adding declared distributions (daily interest, dividends, long term gains and short term gains) for an Investment Option to its net asset value (NAV). |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | That result is then divided by the NAV the end of the prior business day to determine the overall daily performance in the Investment Option. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------|

| · | That calculation is then multiplied by one minus the current Business Day’s mortality and expense risk charge and any additional calendar days since the prior Business Day. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| · | 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 value of an Accumulation Unit for the Investment Option you chose is $13.25. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | THE ANNUITY PHASE |
|----|-------------------|

| * | GMIB Partial Annuitizations are based on the PB Value. They are not available after you exercise the GPWB, or if the PB Value is less than the Contract Value. For more information, see section 4, Protected Retirement Income Made Easy: PRIME Plus Benefit – PB Value. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | a variable payout, |
|--------|--------------------|

| · | a fixed payout, or |
|--------|--------------------|

| · | a combination of both. |
|--------|------------------------|

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| · | The Contract Value on the Income Date. |
|--------|----------------------------------------|

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

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

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

| · | The assumed investment rate (AIR) you select. |
|--------|-----------------------------------------------|

| · | Your Contract’s mortality table. |
|--------|----------------------------------------|

| · | The future performance of the Investment Option(s) you select. |
|--------|----------------------------------------------------------------|

| · | 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. If we make a lump sum payment of the remaining guaranteed Traditional Annuity Payments at the death of the last surviving Annuitant, this portion of the Contract ends upon payment of the lump sum. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| · | Under Annuity Option 6, the expiration of the specified period certain. |
|--------|-------------------------------------------------------------------------|

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

----

----

|   | (A) | = | Annuity Unit value of the subaccount for that given Investment Option when due proof of the Annuitant’s death is received at our Service Center. |
|--------|-----|---|--------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (B) | = | The amount applied to variable Traditional Annuity Payments on the Income Date. |
|--------|-----|---|---------------------------------------------------------------------------------|

|   | (C) | = | Allocation percentage in a given subaccount (in decimal form) when due proof of the Annuitant’s death is received at our Service Center. |
|--------|-----|---|------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (D) | = | The number of Annuity Units used in determining each variable Traditional Annuity Payment attributable to that given subaccount when due proof of the Annuitant’s death is received at our Service Center. |
|--------|-----|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (E) | = | Dollar value of first variable Traditional Annuity Payment. |
|--------|-----|---|-------------------------------------------------------------|

|   | (F) | = | Number of variable Traditional Annuity Payments made since the Income Date. |
|--------|-----|---|-----------------------------------------------------------------------------|

| · | The Contract has one Owner who is a 65-year-old male. He elects variable Annuity Payments under Annuity Option 5 based on a Contract Value of $100,000 (item “B”). |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The Owner who is also the Annuitant allocates all the Contract Value to one Investment Option, so the allocation percentage in this subaccount is 100% (item “C”). |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The purchase rate for the selected assumed investment rate is $6.15 per month per thousand dollars of Contract Value annuitized. Therefore, the first variable Annuity Payment is:  $6.15 x ($100,000 / $1,000) = $615 (item “E”). |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Assume the Annuity Unit value on the Income Date is $12, then the number of Annuity Units used in determining each Annuity Payment is:  $615 / $12 = 51.25 (item “D”). |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The Owner who is also the Annuitant dies after receiving 62 Annuity Payments (item “F”) and the Annuity Unit value for the subaccount on the date the Service Center receives due proof of death is $10 (item “A”). |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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----

| 4. | PROTECTED RETIREMENT INCOME MADE EASY: PRIME PLUS BENEFIT |
|----|-----------------------------------------------------------|

| · | do not intend to exercise either GMIB or GPWB, |
|--------|------------------------------------------------|

| · | do not intend to hold the Contract for the entire seven year waiting period, or |
|--------|---------------------------------------------------------------------------------|

| · | intend to take a Full Annuitization before the end of the seven year waiting period. |
|--------|--------------------------------------------------------------------------------------|

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

----

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

| · | Take an Excess Withdrawal of the entire Contract Value, less any withdrawal charge (available at any time). |
|--------|-------------------------------------------------------------------------------------------------------------|

| · | Request Traditional Annuity Payments under a Full Annuitization based on the entire Contract Value (available at any time). |
|--------|-----------------------------------------------------------------------------------------------------------------------------|

| · | Request GMIB Payments under a Full Annuitization based on the entire remaining PB Value (only available within 30 days following a Contract Anniversary and before we make the next GPWB Payment). |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | GPWB ends, |
|--------|------------|

| · | the Accumulation Phase of the Contract ends, |
|--------|----------------------------------------------|

| · | GMDB ends, and |
|--------|----------------|

| · | if you request Annuity Payments, that portion of the Contract ends as indicated in section 3, The Annuity Phase. |
|--------|------------------------------------------------------------------------------------------------------------------|

| · | the average one year volatility* is greater than 15%. |
|--------|-------------------------------------------------------|

| · | the average three year volatility* is greater than 15%. |
|--------|---------------------------------------------------------|

| · | the average one year risk** is greater than 75%. |
|--------|--------------------------------------------------|

| · | the average three year risk** is greater than 75%. |
|--------|----------------------------------------------------|

| * | As measured by standard deviation. This means that if the standard deviation in regard to aggregate Owner assets in the Investment Options held by Contracts with PRIME Plus Benefit is greater than 0.15, this limit will be exceeded. |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ** | As measured by the beta compared to the Standard & Poor’s® 500 Composite Price Index (S&P 500®). This means that if the beta in regard to aggregate Owner assets in the Investment Options held by Contracts with PRIME Plus Benefit as compared to the S&P 500® is greater than 0.75, this limit will be exceeded. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| · | Group A Investment Options are no longer available to you. |
|--------|------------------------------------------------------------|

| · | You cannot have more than 70% of your total Contract Value in Group B Investment Options. |
|--------|-------------------------------------------------------------------------------------------|

| · | There are no restrictions on allocations to Group C Investment Options. |
|--------|-------------------------------------------------------------------------|

| Group C Investment Options                                                                                                                                                                                                                                                                                                                                                                                                             |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| AZL Balanced Index Strategy FundAZL Franklin Templeton Founding Strategy Plus FundAZL Gateway FundAZL Growth Index Strategy FundAZL Invesco Equity and Income FundAZL Money Market FundAZL MVP Fusion Balanced FundAZL MVP Fusion Conservative FundAZL MVP Fusion Moderate FundBlackRock Global Allocation V.I. FundFidelity VIP FundsManager 50% PortfolioFidelity VIP FundsManager 60% PortfolioFranklin High Income Securities Fund | Franklin Income Securities FundFranklin U.S. Government FundPIMCO VIT All Asset PortfolioPIMCO VIT Emerging Markets Bond PortfolioPIMCO VIT Global Advantage Strategy Bond PortfolioPIMCO VIT Global Bond Portfolio (Unhedged)PIMCO VIT Global Multi-Asset PortfolioPIMCO VIT High Yield PortfolioPIMCO VIT Real Return PortfolioPIMCO VIT Total Return PortfolioPIMCO VIT Unconstrained Bond PortfolioTempleton Global Bond Securities Fund |

| · | If your most recent allocation instructions include both Group B and Group C Investment Options, we transfer all Contract Value out of Group A Investment Options and apply it to Group B and Group C Investment Options according to your most recent allocation instructions (excluding any allocations you made to Group A Investment Options). |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | If your most recent allocation instructions include only Group B Investment Options, we transfer all Contract Value out of Group A Investment Options and apply it to Group B Investment Options according to your most recent allocation instructions (excluding any allocations you made to Group A Investment Options). |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | If your most recent allocation instructions include only Group C Investment Options, we transfer all Contract Value out of Group A Investment Options and apply it to Group C Investment Options according to your most recent allocation instructions (excluding any allocations you made to Group A Investment Options). |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | If your most recent allocation instructions do not include any Group B or Group C Investment Options, we transfer all Contract Value out of Group A Investment Options and apply it to the AZL Money Market Fund. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | If your most recent allocation instructions include any Group C Investment Options, we transfer the excess Contract Value* out of Group B Investment Options proportionately and apply it to Group C Investment Options according to your most recent allocation instructions (excluding any allocations you made to Group A and Group B Investment Options). |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | If your most recent allocation instructions do not include any Group C Investment Options, we transfer the excess Contract Value out of Group B Investment Options and apply it to the AZL Money Market Fund. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| * | The amount of Contract Value in Group B Investment Options that is in excess of 70% of the total Contract Value. |
|---|------------------------------------------------------------------------------------------------------------------|

----

| · | the 7% AIA; |
|--------|------------------|

| · | the MAV; or |
|--------|-------------|

| · | the Contract Value. |
|--------|---------------------|

| · | under the 7% AIA, the 7% increase is only applied to Purchase Payments received in the first five Contract Years and the 7% AIA is subject to a maximum of two times Purchase Payments received in the first five Contract Years; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | under GMIB, there are fewer available Annuity Options; and |
|--------|------------------------------------------------------------|

| · | under GPWB, you can only receive GPWB Payments of up to 5% of the PB Value each year. |
|--------|---------------------------------------------------------------------------------------|

----

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

| · | its value on the immediately preceding Business Day, |
|--------|------------------------------------------------------|

| · | plus any additional Purchase Payments received that day, |
|--------|----------------------------------------------------------|

| · | reduced proportionately by the percentage of Contract Value applied to a traditional Partial Annuitization or withdrawn that day (including any withdrawal charge), and |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | if you took a GMIB Partial Annuitization that day based on the: |
|--------|-----------------------------------------------------------------|

|   | – | 7% AIA, we reduce the 7% AIA by the dollar amount applied to GMIB Payments. |
|--------|---------|---------------------------------------------------------------------------------------|

|   | – | MAV, we reduce the 7% AIA proportionately by the percentage of the MAV applied to GMIB Payments. |
|--------|---------|-------------------------------------------------------------------------------------------------------|

| a) | is all Purchase Payments received on or after the later of the fifth Contract Anniversary or the reset anniversary. |
|----|---------------------------------------------------------------------------------------------------------------------|

| b) | is the difference of i) minus ii) with the result increased by 7% where: |
|----|--------------------------------------------------------------------------|

|   | i) | is the 7% AIA on the immediately preceding Business Day, and |
|--------|----|-------------------------------------------------------------------|

|   | ii) | is all Purchase Payments received on or after the later of the fifth Contract Anniversary or the reset anniversary. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------|

----

| · | its value on the immediately preceding Business Day, |
|--------|------------------------------------------------------|

| · | plus two times any additional Purchase Payments received that day, |
|--------|--------------------------------------------------------------------|

| · | reduced proportionately by the percentage of any Contract Value applied to a traditional Partial Annuitization or withdrawn that day (including any withdrawal charge), and |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | reduced proportionately by the percentage of the PB Value applied to a GMIB Partial Annuitization that day. |
|--------|-------------------------------------------------------------------------------------------------------------|

| · | reduced proportionately by the percentage of Contract Value applied to a traditional Partial Annuitization or withdrawn (including any withdrawal charge) for each traditional annuitization or withdrawal taken, and |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | reduced proportionately by the percentage of the PB Value applied to each GMIB Partial Annuitization. |
|--------|-------------------------------------------------------------------------------------------------------|

| · | its value on the immediately preceding Business Day, |
|--------|------------------------------------------------------|

| · | plus any additional Purchase Payments received that day, |
|--------|----------------------------------------------------------|

| · | reduced proportionately by the percentage of Contract Value applied to a traditional Partial Annuitization or withdrawn that day (including any withdrawal charge), and |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | if you take a GMIB Partial Annuitization that day based on the: |
|--------|-----------------------------------------------------------------|

|   | – | MAV, we reduce the MAV by the dollar amount applied to GMIB Payments, and |
|--------|---------|---------------------------------------------------------------------------|

|   | – | the 7% AIA, we reduce the MAV proportionately by the percentage of the 7% AIA applied to GMIB Payments. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------|

----

| · | on a dollar for dollar basis for withdrawals (GPWB Payments and Excess Withdrawals) that do not exceed the GPWB Maximum; and |
|--------|------------------------------------------------------------------------------------------------------------------------------|

| · | proportionately by the percentage of any Contract Value taken as a  withdrawal (including both GPWB Payments and Excess Withdrawals), including any withdrawal charge, for each withdrawal you take that exceeds the GPWB Maximum. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| · | You can no longer remove PRIME Plus Benefit from the Contract. |
|--------|----------------------------------------------------------------|

| · | You can no longer make additional Purchase Payments to the Contract and the automatic investment plan (AIP) is no longer available to you. If you are participating in AIP, your participation ends. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Partial Annuitizations are no longer available. |
|--------|-------------------------------------------------|

| · | The additional M&E charge for PRIME Plus Benefit continues until both GPWB and GMIB end. |
|--------|----------------------------------------------------------------------------------------------|

| · | If you have Enhanced GMDB or Earnings Protection GMDB, the additional M&E charge for GMDB continues as long as the Enhanced GMDB value or the Earnings Protection GMDB value is greater than zero. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The partial withdrawal privilege is no longer available to you; however, you can still take GPWB Payments and Excess Withdrawals up to the annual GPWB Maximum without a withdrawal charge. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The systematic withdrawal and minimum distribution programs are no longer available to you and if you are participating in these programs, your participation ends. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The Contract Value continues to fluctuate as a result of market performance, and decreases on a dollar for dollar basis with each GPWB Payment and any Excess Withdrawals. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The GMDB value no longer increases, and each GPWB Payment and any Excess Withdrawals reduces the GMDB value proportionately by the percentage of Contract Value withdrawn. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The PB Value no longer increases if you elect the 10% payment option and 7% AIA resets are no longer available. |
|--------|----------------------------------------------------------------------------------------------------------------------|

| · | If you select the 5% payment option, the PB Value may increase (step up) on every third Contract Anniversary after you exercise GPWB and before the older Owner’s 91st birthday as long as there is PB Value. If we step up the PB Value we may also step up the GPWB Maximum. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Each withdrawal (GPWB Payment and/or Excess Withdrawal) reduces the PB Value as follows: |
|--------|------------------------------------------------------------------------------------------|

|   | – | withdrawals taken during the Contract Year that do not exceed the GPWB Maximum reduce the PB Value on a dollar for dollar basis, and |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------|

|   | – | withdrawals taken during the Contract Year that do exceed the GPWB Maximum reduce the PB Value proportionately by the percentage of Contract Value withdrawn (including any withdrawal charge). |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Withdrawals (GPWB Payments and/or Excess Withdrawals) that do not exceed the annual GPWB Maximum do not reduce the Withdrawal Charge Basis, but withdrawals that exceed the annual GPWB Maximum (including GPWB Payments) may be subject to a withdrawal charge and reduces the Withdrawal Charge Basis, as set out in section 7, Expenses – Withdrawal Charge. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | You can no longer remove PRIME Plus Benefit from the Contract and 7% AIA resets are no longer available. |
|--------|---------------------------------------------------------------------------------------------------------------|

| · | The Accumulation Phase ends and the Annuity Phase begins. |
|--------|-----------------------------------------------------------|

| · | The portion of the Contract that you apply to GMIB is no longer subject to the Separate Account annual expense, but any portion of the Contract that has been applied to variable Traditional Annuity Payments continues to be subject to a 1.50% Separate Account annual expense. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | If you have not exercised GPWB, it is no longer available to you, and you cannot make additional Purchase Payments to the Contract. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------|

| · | If you exercised GPWB, GPWB Payments stop and GPWB ends. |
|--------|----------------------------------------------------------|

| · | GMDB ends. |
|--------|------------|

----

| · | You can no longer remove PRIME Plus Benefit from the Contract and 7% AIA resets are no longer available. |
|--------|---------------------------------------------------------------------------------------------------------------|

| · | The Annuity Phase begins and the Accumulation Phase continues. |
|--------|----------------------------------------------------------------|

| · | The portion of the Contract that you apply to GMIB is no longer subject to the Separate Account annual expense, but any portion of the Contract that is in the Accumulation Phase or that has been applied to variable Traditional Annuity Payments continue to be subject to the appropriate Separate Account annual expense. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | GPWB continues to be available to you. |
|--------|----------------------------------------|

| · | If any portion of the Contract is still in the Accumulation Phase, you may be able to make additional Purchase Payments to the Contract, but you cannot make additional Purchase Payments to any portion of the Contract that is in the Annuity Phase. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The Partial Annuitization reduces each Purchase Payment, the Contract Value and GMDB value proportionately by the percentage of PB Value you apply to GMIB. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | GMIB Payments do not affect the Contract Value available under the portion of the Contract that is in the Accumulation Phase. |
|--------|-------------------------------------------------------------------------------------------------------------------------------|

| * | Not available after you exercise GPWB, or if the PB Value is less than the Contract Value. |
|---|--------------------------------------------------------------------------------------------|

| · | when to exercise a benefit, |
|--------|-----------------------------|

| · | which benefit(s) to exercise, |
|--------|-------------------------------|

| · | the amount of the GPWB Payment (subject to the GPWB Maximum) and Excess Withdrawals from the portion of the Contract that is in the Accumulation Phase,* |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | the frequency of GPWB Payments,* and |
|--------|--------------------------------------|

| · | whether to stop or restart GPWB Payments on an annual basis. |
|--------|--------------------------------------------------------------|

| * | Owners do not have this flexibility under GMIB. |
|---|-------------------------------------------------|

|   | * See the discussion of “Step Ups Under GPWB with the 5% Payment Option” earlier in this section. |
|--------|---------------------------------------------------------------------------------------------------------------|

----

| · | the Withdrawal Charge Basis,** |
|--------|--------------------------------|

| · | the Contract Value, |
|--------|---------------------|

| · | the PB Value (which determines the amount available for future GPWB Payments and/or future GMIB Payments), and |
|--------|----------------------------------------------------------------------------------------------------------------|

| · | the GMDB value. |
|--------|-----------------|

| * | Amounts paid as part of a required minimum distribution are never subject to a withdrawal charge. |
|---|---------------------------------------------------------------------------------------------------|

| ** | GPWB Payments and Excess Withdrawals that do not exceed the annual GPWB Maximum do not reduce the Withdrawal Charge Basis. |
|----|----------------------------------------------------------------------------------------------------------------------------|

| · | within ten years if you elect the 10% payment option and take the maximum allowable payment each year, or |
|--------|-----------------------------------------------------------------------------------------------------------|

| · | within 20 years if you elect the 5% payment option and take the maximum allowable payment each year (assuming no step ups). |
|--------|-----------------------------------------------------------------------------------------------------------------------------|

| · | change the frequency of next year’s GPWB Payments, |
|--------|----------------------------------------------------------|

| · | change the amount of next year’s GPWB Payment subject to the GPWB Maximum, or |
|--------|-------------------------------------------------------------------------------------|

| · | stop GPWB Payments for the next GPWB Year. |
|--------|--------------------------------------------|

| · | Stop GPWB Payments completely and have us make GMIB Payments under a Full Annuitization based on the entire remaining PB Value. |
|--------|---------------------------------------------------------------------------------------------------------------------------------|

| · | Stop GPWB Payments completely and take an Excess Withdrawal of the entire Contract Value (less any withdrawal charge). |
|--------|------------------------------------------------------------------------------------------------------------------------|

| · | Stop GPWB Payments completely and have us make Traditional Annuity Payments under a Full Annuitization based on the entire Contract Value. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------|

----

| · | receive a lump sum payment of the entire remaining Contract Value (less any withdrawal charges), the Accumulation Phase of the Contract ends, and the Contract ends+; or |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | request Traditional Annuity Payments under a Full Annuitization based on the entire remaining Contract Value. |
|--------|---------------------------------------------------------------------------------------------------------------|

| + | If you took a Partial Annuitization, those portions of the Contract continue and we continue to make Annuity Payments as provided for in the selected Annuity Option. |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| * | Amounts paid as part of a required minimum distribution are never subject to a withdrawal charge. |
|---|---------------------------------------------------------------------------------------------------|

| · | When PRIME Plus Benefit ends. |
|--------|-------------------------------|

| · | The Business Day you take an Excess Withdrawal of the entire Contract Value. |
|--------|------------------------------------------------------------------------------|

| · | The Business Day that the PB Value and Contract Value are both zero. |
|--------|----------------------------------------------------------------------|

| · | The Business Day before the Income Date that you take a Full Annuitization. |
|--------|-----------------------------------------------------------------------------|

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

| · | The death of any Owner (unless the deceased Owner’s spouse continues the Contract as the new Owner). |
|--------|------------------------------------------------------------------------------------------------------------|

| · | Your Income Date must be within 30 days following a Contract Anniversary beginning seven Contract Years after the date PRIME Plus Benefit is added to your Contract, or seven Contract Years after the date of any 7% AIA reset. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | GMIB Payments can only be made as fixed payments, regardless of the Annuity Option* you select. |
|--------|-------------------------------------------------------------------------------------------------|

| · | Annuity Option 6* is only available if the PB Value is the MAV and the duration of the period certain must be at least ten years. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------|

| · | If the PB Value is the 7% AIA, your available Annuity Options* are restricted to Annuity Option 2 or 4 and the duration of the period certain must be at least ten years. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | We base all GMIB Payments on an interest rate of 1% per year. |
|--------|---------------------------------------------------------------|

| * | For more information see section 3, The Annuity Phase – Annuity Options. |
|---|--------------------------------------------------------------------------------|

----

| · | transfer any amounts you allocated to GMIB Payments back to any portion of the Contract that is in the Accumulation Phase; |
|--------|----------------------------------------------------------------------------------------------------------------------------|

| · | transfer amounts from one Annuity Payment stream to another; or |
|--------|-----------------------------------------------------------------|

| · | allocate additional PB Value (or Contract Value) to an existing stream of Annuity Payments. |
|--------|---------------------------------------------------------------------------------------------|

----

|   | · | When PRIME Plus Benefit ends. |
|--------|--------|-------------------------------|

| · | The Business Day that the PB Value and Contract Value are both zero. |
|--------|----------------------------------------------------------------------|

| · | The Business Day before the Income Date you take a Full Annuitization and request Traditional Annuity Payments. |
|--------|-----------------------------------------------------------------------------------------------------------------|

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

| · | The death of any Owner (unless the deceased Owner’s spouse continues the Contract as the new Owner). |
|--------|------------------------------------------------------------------------------------------------------------|

| · | 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. |
|--------|----------------------------------------------------------------------------------------|

| · | Under Annuity Option 6, the expiration of the specified period certain. |
|--------|-------------------------------------------------------------------------|

| · | When PRIME Plus Benefit ends. |
|--------|-------------------------------|

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

| * | If we make a lump sum payment of the remaining guaranteed GMIB Payments at the death of the last surviving Annuitant, this portion of the Contract ends upon payment of the lump sum. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | INVESTMENT OPTIONS |
|----|--------------------|

----

|   | 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 Balanced Index Strategy Fund | A “Fund of Funds” Model Portfolio | Long-term capital appreciation with preservation of capital as an important consideration | Invests primarily in a combination of five underlying bond and equity index funds, to achieve a range generally from 40% to 60% of assets in the underlying equity index funds and 40% to 60% in the underlying bond index fund.                                                                                                                                                                                                                                           |
|                                               | AZL Growth Index Strategy Fund   | A “Fund of Funds” Model Portfolio | Long-term capital appreciation                                                            | Invests primarily in a combination of five underlying bond and equity index funds, to achieve a range generally from 65% to 85% of assets in the underlying equity index funds and 15% to 35% in the underlying bond index fund.                                                                                                                                                                                                                                           |
|                                               | AZL MVP 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, combined with the MVP (Managed Volatility Portfolio) risk management process intended to adjust the risk of the portfolio based on quantitative indicators of market risk. May include allocation of the Fund’s assets in a combination of derivative and fixed income instruments. |

----

| Investment Management CompanyandAdviser/Subadviser                                                                                         | Name of Investment Option                          | Asset Category                                | Objective(s)                                                                              | Primary Investments(Normal market conditions)                                                                                                                                                                                                                                                                                                                                                                                                                              |
|--------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------|-----------------------------------------------|-------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                       | AZL MVP 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, combined with the MVP (Managed Volatility Portfolio) risk management process intended to adjust the risk of the portfolio based on quantitative indicators of market risk. May include allocation of the Fund’s assets in a combination of derivative and fixed income instruments. |
|                                                                                                                                       | AZL MVP 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, combined with the MVP (Managed Volatility Portfolio) risk management process intended to adjust the risk of the portfolio based on quantitative indicators of market risk. May include allocation of the Fund’s assets in a combination of derivative and fixed income instruments. |
| BLACKROCK                                                                                                                                  |
| 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 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.                                                                                                                                                                                                        |
| FIDELITY                                                                                                                                   |
| Managed by Strategic Advisers, Inc.                                                                                                        | Fidelity VIP FundsManager 50% Portfolio            | Model Portfolio(Fund of Funds)                | High total return                                                                         | Invests in a combination of underlying Fidelity retail and variable insurance products funds using a target allocation of approximately 35% domestic equity funds, 15% international equity funds, 40% fixed income funds and 10% money market funds, to achieve portfolio characteristics similar to the VIP FundsManager 50% Composite Index.                                                                                                                            |
|                                                                                                                                       | Fidelity VIP FundsManager 60% Portfolio            | Model Portfolio(Fund of Funds)                | High total return                                                                         | Invests in a combination of underlying Fidelity retail and variable insurance products funds using a target allocation of approximately 42% domestic equity funds, 18% international equity funds, 35% fixed income funds and 5% money market funds, to achieve portfolio characteristics similar to the VIP FundsManager 60% Composite Index.                                                                                                                             |
| 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.                                                                                                                                                                                                                                                                                                                                                                                                                            |

----

| Investment Management CompanyandAdviser/Subadviser                            | Name of Investment Option                          | Asset Category           | Objective(s)                                                                                                        | Primary Investments(Normal market conditions)                                                                                                                                                                                                                                                                                                                 |
|-------------------------------------------------------------------------------|----------------------------------------------------|--------------------------|---------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                          | Franklin U.S. Government Fund                      | Intermediate-Term Bonds  | Income                                                                                                              | At least 80% of its net assets in U.S. government securities.                                                                                                                                                                                                                                                                                                 |
|                                                                          | 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.                                                                                                                                                                                                          |
| 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. |
| PIMCO                                                                         |
| Managed by Pacific Investment Management Company LLC                          | 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 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 Advantage Strategy Bond Portfolio | Intermediate-Term Bonds  | Total return, which exceeds that of its benchmarks, consistent with prudent investment management                   | At least 80% of its assets in fixed income instruments that are economically tied to at least three countries (one of which may be the United States), which may be represented by forwards or derivatives such as options, futures contracts, or swap agreements.                                                                                            |
|                                                                          | 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                | Maximum long-term absolute return, consistent with prudent management of portfolio volatility                       | 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.                                                                                                                                             |

----

| Investment Management CompanyandAdviser/Subadviser | Name of Investment Option              | Asset Category          | Objective(s)                                                                                        | Primary Investments(Normal market conditions)                                                                                                                                                                                                                                                         |
|----------------------------------------------------|----------------------------------------|-------------------------|-----------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                               | 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. |
|                                               | 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.                                                                                  |

----

| · | The minimum amount that you can transfer is $1,000 ($500 in New Jersey) or the entire amount in the Investment Choice, if less. We waive this requirement if the transfer is made under the dollar cost averaging or flexible rebalancing programs or the allocation and transfer restrictions for PRIME Plus Benefit. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Your request for a transfer must clearly state: |
|--------|-------------------------------------------------|

|   | – | which Investment Choices are involved in the transfer; and |
|--------|---------|------------------------------------------------------------|

|   | – | how much you wish to transfer. |
|--------|---------|--------------------------------|

| · | After the Income Date, you cannot make a transfer from a fixed Annuity Payment stream to a variable Annuity Payment stream. |
|--------|-----------------------------------------------------------------------------------------------------------------------------|

| · | After the Income Date, you can make a transfer from a variable Annuity Payment stream to establish a new fixed Annuity Payment stream. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------|

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

| · | Transfer instructions apply equally to the accumulation and annuitization portions of the Contract. You cannot make transfers selectively within different portions of the Contract. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Transfers of Contract Value between Investment Options do not change the allocation instructions for any future Purchase Payments. |
|--------|------------------------------------------------------------------------------------------------------------------------------------|

----

| · | 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. |
|--------|-----------------------------------------------------------------------------------------------------|

----

| · | The number of desired transfers has been made. |
|--------|------------------------------------------------|

| · | You do not have enough money in the Investment Choices to make the transfer (if less money is available, that amount is dollar cost averaged and the program ends). |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | You request to end the program (your request must be received at our Service Center by 4:00 p.m. Eastern Time on the Business Day immediately before the tenth to end that month). |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

| · | 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/annuity units for your Contract on the record date. We count fractional units. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 6. | OUR GENERAL ACCOUNT |
|----|---------------------|

| 7. | EXPENSES |
|----|----------|

----

|                     | Base Contract  | Charges for a Contract withPRIME Plus Benefit |
|--------------------------|----------------|-----------------------------------------------|
|                     | M&E Charge | Admin.Charge                                  | Total | M&E Charge | Admin.Charge | Total |
| Traditional GMDB         | 1.35%          | 0.15%                                         | 1.50% | 2.05% | 0.15% | 2.20% |
| Enhanced GMDB            | 1.65%          | 0.15%                                         | 1.80% | 2.25% | 0.15% | 2.40% |
| Earnings Protection GMDB | 1.65%          | 0.15%                                         | 1.80% | 2.30% | 0.15% | 2.45% |

| · | our contractual obligation to make Annuity Payments, |
|--------|------------------------------------------------------|

| · | the death, income, and withdrawal benefits under the Contract, |
|--------|----------------------------------------------------------------|

| · | certain expenses related to the Contract, and |
|--------|-----------------------------------------------|

| · | for assuming the risk (expense risk) that the current charge is insufficient in the future to cover the cost of administering the Contract. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------|

| · | During the Accumulation Phase for all your Alterity 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 Contract Value on the Income Date is at least $100,000. |
|--------|-----------------------------------------------------------------------------------------|

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

----

| 1. | First, we withdraw any Purchase Payments that are beyond your Contract’s withdrawal charge period (for example, Purchase Payments that we have had for six or more complete Contract Years). We do not assess a withdrawal charge on these Purchase Payments. This withdrawal reduces the Withdrawal Charge Basis. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | Then, we withdraw any Purchase Payments that are under the partial withdrawal privilege and we do not assess a withdrawal charge. However, the partial withdrawal privilege is not available if you are taking a full withdrawal. For more information, see section 9, Access to Your Money – Partial Withdrawal Privilege. This withdrawal does not reduce the Withdrawal Charge Basis. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | Next, on a FIFO basis, we withdraw Purchase Payments that are within the withdrawal charge period shown in your Contract. We do assess a withdrawal charge on these Purchase Payments, but we withdraw them on a FIFO basis, which may help reduce the total withdrawal charge you pay because the withdrawal charge declines over time. We determine your total withdrawal charge by multiplying each of these payments by the applicable withdrawal charge percentage and then totaling the charges. This withdrawal reduces the Withdrawal Charge Basis. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | Finally, we withdraw any Contract earnings. We do not assess a withdrawal charge on Contract earnings. This withdrawal does not reduce the Withdrawal Charge Basis. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Number of Complete Contract Years Since We Received Your Purchase Payment | Charge |
|---------------------------------------------------------------------------|--------|
| 0                                                                         | 7%     |
| 1                                                                         | 6%     |
| 2                                                                         | 5%     |
| 3                                                                         | 4%     |
| 4                                                                         | 3%     |
| 5                                                                         | 2%     |
| 6 Contract Years or more                                                  | 0%     |

| 1) | Purchase Payments that are beyond the withdrawal charge period. All payments are still within the withdrawal charge period so this does not apply. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------|

| 2) | Amounts available under the partial withdrawal privilege. You can withdraw 12% of total purchase payments per year, and any unused partial withdrawal privilege in one Contract Year carries over to the next Contract Year. This is the third Contract Year and you have not taken any other withdrawals, so you can withdraw up to 36% of your total payments (or $36,000) without incurring a withdrawal charge. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3) | Purchase Payments on a FIFO basis. The total amount we deduct from the first Purchase Payment is $10,000, which is subject to a 5% withdrawal charge, and we pay you this entire amount. A withdrawal charge of $500 is also tracked. We determine the withdrawal charge on this amount as follows: |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| $10,000 | x | 0.050 | = | $500 |
|---------|---|-------|---|------|

|   | Next we determine how much we need to deduct from the second Purchase Payment. So far we have deducted $46,000 ($36,000 under the partial withdrawal privilege and $10,000 from the first Purchase Payment), so we would need to deduct $6,000 from the second Purchase Payment to get you the $52,000 you requested. The second Purchase Payment is subject to a 6% withdrawal charge. We determine the withdrawal charge on this amount this amount as follows: |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| $6,000 | x | 0.060 | = | $360 |
|--------|---|-------|---|------|

| 4) | Contract earnings. The withdrawal charges of $860 are deducted from contract earnings. |
|----|----------------------------------------------------------------------------------------|

----

| 8. | TAXES |
|----|-------|

----

| · | 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. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | 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. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | 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) | 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. |
|----|---------------------------------------------------------------|

----

| 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 no longer applies 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. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

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

| · | by taking a withdrawal (including GPWB Payments); |
|--------|---------------------------------------------------|

| · | by taking required minimum distributions (Qualified Contracts only); |
|--------|----------------------------------------------------------------------|

| · | by taking Annuity Payments; or |
|--------|--------------------------------|

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

| · | based upon the number of Accumulation Units held by the Contract on that Business Day and valued at the next available daily price, |
|--------|-------------------------------------------------------------------------------------------------------------------------------------|

| · | less any applicable withdrawal charge, and |
|--------|--------------------------------------------|

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

| * | These limitations do not apply to GPWB Payments. |
|---|--------------------------------------------------|

----

| · | confined to a nursing home for a period of at least 90 consecutive days; |
|--------|--------------------------------------------------------------------------|

| · | terminally ill, which is defined as life expectancy of 12 months or less (we require a full withdrawal of the Contract in this instance); or |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------|

| · | totally disabled for a period of at least 90 consecutive days. |
|--------|----------------------------------------------------------------|

----

| · | 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. |
|--------|------------------------------------------------------------------------------------------|

----

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

| 1. | The Contract Value, determined as of the end of the Business Day during which we receive in Good Order at our Service Center the death benefit payment option and due proof of death. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | The Traditional GMDB value, which is the total of all Purchase Payments received before you exercise the GPWB (if applicable), reduced as follows. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Proportionately by the percentage of Contract Value applied to a traditional Partial Annuitization or withdrawn (including any withdrawal charge) for each traditional annuitization or withdrawal taken (including GPWB Payments, Excess Withdrawals, and any applicable withdrawal charge). |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Proportionately by the percentage of PB Value applied to each GMIB Partial Annuitization taken before you exercise the GPWB (if applicable). |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------|

----

| 1. | The Contract Value, determined as of the end of the Business Day during which we receive in Good Order at our Service Center the death benefit payment option and due proof of death. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | The Enhanced GMDB value, determined as of the end of the Business Day during which we receive in Good Order at our Service Center the death benefit payment option and due proof of death. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | its value on the immediately preceding Business Day, |
|--------|------------------------------------------------------|

| · | plus any additional Purchase Payments received that day, |
|--------|----------------------------------------------------------|

| · | reduced proportionately by the percentage of Contract Value applied to a traditional Partial Annuitization or withdrawn that day (including GPWB Payments, Excess Withdrawals and any applicable withdrawal charge), and |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | reduced proportionately by the percentage of PB Value applied to a GMIB Partial Annuitization that day (if applicable). |
|--------|-------------------------------------------------------------------------------------------------------------------------|

|   | · | proportionately, by the percentage of PB Value applied to each GMIB Partial Annuitization (if applicable). |
|--------|--------|------------------------------------------------------------------------------------------------------------|

|   | · | proportionately, by the percentage of Contract Value withdrawn (including any withdrawal charge) and/or annuitized for each of the following: withdrawals taken before you exercise the GPWB, amounts applied to traditional Partial Annuitizations (not subject to a withdrawal charge), GPWB Payments (not subject to a withdrawal charge), and/or Excess Withdrawals. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | its value on the immediately preceding Business Day, |
|--------|------------------------------------------------------|

| · | plus any additional Purchase Payments received that day, |
|--------|----------------------------------------------------------|

| · | reduced proportionately by the percentage of Contract Value applied to a traditional Partial Annuitization or withdrawn that day (including GPWB Payments, Excess Withdrawals and any applicable withdrawal charge), and |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | reduced proportionately by the percentage of PB Value applied to a GMIB Partial Annuitization that day (if applicable). |
|--------|-------------------------------------------------------------------------------------------------------------------------|

----

| 1. | The Contract Value, determined as of the end of the Business Day during which we receive in Good Order at our Service Center the death benefit payment option and due proof of death. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | Earnings Protection GMDB value, determined as of the end of the Business Day during which we receive in Good Order at our Service Center the death benefit payment option and due proof of death. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| C.                                                                                                                                                                                                                                                                                                                                                                                     | Total Payments                                                                                                   |                                                                                                                                                                     |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                   | Total Purchase Payments received before you exercise the GPWB (if applicable),less adjusted partial withdrawals. |                                                                                                                                                                     |
| For withdrawals (including GPWB Payments and Excess Withdrawals) or traditional Partial Annuitizations,an adjusted partial withdrawal is equal to: ……………………………………………………………………………………... | PW x DB                                                                                                          |
| CV                                                                                                                                                                                                                                                                                                                                                                                     |
|                                                                                                                                                                                                                                                                                                                                                                                   |
| For GMIB Partial Annuitizations, an adjusted partial withdrawal is equal to: ……………………………………….                                                                                                                                                                                                | GMIBPA x DB                                                                                                      |
| PA                                                                                                                                                                                                                                                                                                                                                                                     |
| PW                                                                                                                                                                                                                                                                                                                                                                                     | =                                                                                                                | The amount of any Contract Value applied to a traditional Partial Annuitization or withdrawn (including any withdrawal charge).                                          |
| GMIBPA                                                                                                                                                                                                                                                                                                                                                                                 | =                                                                                                                | The amount of any PB Value applied to a GMIB Partial Annuitization.                                                                                                      |
| DB                                                                                                                                                                                                                                                                                                                                                                                     | =                                                                                                                | The greater of: (a) Contract Value, or (b) total Purchase Payments minus prior adjusted partial withdrawals, on the date of (but before) the current partial withdrawal. |
| CV                                                                                                                                                                                                                                                                                                                                                                                     | =                                                                                                                | The Contract Value on the date of (but before) the partial withdrawal.                                                                                                   |
| PA                                                                                                                                                                                                                                                                                                                                                                                     | =                                                                                                                | The PB Value on the date of (but before) the partial withdrawal.                                                                                                         |

----

| D.     | Contract Value Plus (CV Plus)                                                        |
|--------|--------------------------------------------------------------------------------------|
|   | Before exercise of the GPWB (if applicable), CV Plus is equal to the Contract Value, |
|   | Plus                                                                                 |
|   | ·                                                                               | If you were age 69 or younger on the Issue Date, 50% of the lesser of (a) or (b), or |   |
|   | ·                                                                               | If you were age 70 or older on the Issue Date, 30% of the lesser of (a) or (b), where: |   |
|   |                                                                                 | (a) | Is the Contract Value as determined in number 1 above, minus total Purchase Payments received. |   |
|   |                                                                                 | (b) | Is three times the total Purchase Payments received in the first two Contract Years. |   |

| · | the Traditional GMDB value, Enhanced GMDB value, or Earnings Protection GMDB value that applies to your Contract stops increasing, and each GPWB Payment we make and any Excess Withdrawals you take reduces the GMDB value proportionately by the percentage of Contract Value withdrawn (including any withdrawal charge); |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | the death benefit that is equal to your Contract Value continues to fluctuate with market performance but decreases with each GPWB Payment we make and any Excess Withdrawals you take; and |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | the increased M&E charge associated with the Enhanced GMDB or Earnings Protection GMDB (if applicable) continues as long as the Enhanced GMDB value or the Earnings Protection GMDB value is greater than zero. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The Business Day before the Income Date that you take a Full Annuitization. |
|--------|-----------------------------------------------------------------------------|

| · | The Business Day that the GMDB value and Contract Value are both zero. |
|--------|------------------------------------------------------------------------|

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

----

| UPON THE DEATH OF A SOLE OWNER                                             |
|----------------------------------------------------------------------------|
| Action under the portion of the Contract that is in the Accumulation Phase | Action under any portion of the Contract applied toAnnuity Payments |
| ·                                                                     | We pay a death benefit to the Beneficiary.(1) For a description of the payout options, see the “Death Benefit Payment Options” discussion later in this section. | · | 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 GPWB was in effect, it ends unless the deceased Owner’s spouse continues the Contract. | · | If the deceased was the only surviving Annuitant, Annuity Payments to the Payee continue until that portion of the Contract ends and are paid at least as rapidly as they were being paid at the Annuitant’s death. For more information on when any portion of the Contract applied to Traditional Annuity Payments ends, see section 3, The Annuity Phase – Traditional Annuity Payments. For more information on when any portion of the Contract applied to GMIB Payments ends, see section 4, Protected Retirement Income Made Easy: PRIME Plus Benefit – When GMIB Ends. No death benefit is payable under Annuity Options 1, 3, or 6. However, there may be a lump sum available under Annuity Options 2, 4, or 5. For more information, see section 3, The Annuity Phase – Annuity Options. |
|                                                                       |   |
|                                                                       |   | · | 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 spouse of the deceased Owner, he or she may be able to continue the Contract instead of receiving a death benefit payout. If the Contract continues, we increase the Contract Value to equal the death benefit if that amount is greater than the Contract Value as 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(NOTE: We do not allow Joint Owners to take Partial Annuitizations) |
|----------------------------------------------------------------------------------------------------|
| Action under the portion of the Contract that is in the Accumulation Phase                         | Action under any portion of the Contract applied toAnnuity Payments |
| ·                                                                                             | The surviving Joint Owner is the sole primary Beneficiary. If the Joint Owners were spouses there may also be 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 later in this section. | · | If the deceased was the only surviving Annuitant, Annuity Payments to the Payee continue until that portion of the Contract ends and are paid at least as rapidly as they were being paid at the Annuitant’s death. For more information on when any portion of the Contract applied to Traditional Annuity Payments ends, see section 3, The Annuity Phase – Traditional Annuity Payments. For more information on when any portion of the Contract applied to GMIB Payments ends, see section 4, Protected Retirement Income Made Easy: PRIME Plus Benefit – When GMIB Ends. No death benefit is payable under Annuity Options 1, 3, or 6. However, there may be a lump sum available under Annuity Options 2, 4, or 5. For more information, see section 3, The Annuity Phase – Annuity Options. |
| ·                                                                                             | If the GPWB was in effect, it ends unless the Joint Owners were spouses and the surviving spouse who is also the Joint Owner continues the Contract. |
|                                                                                               |   | · | 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 spouse of the deceased Owner, he or she may be able to continue the Contract instead of receiving a death benefit payout. If the Contract continues, we increase the Contract Value to equal the death benefit if that amount is greater than the Contract Value as of the Business Day we receive in Good Order at our Service Center an the death benefit payment election and due proof of death. If both spousal 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. If the Joint Owners were not spouses and they both die before we pay the death benefit, for tax reasons, we pay the estate of the Joint Owner who died last. |

----

| UPON THE DEATH OF THE ANNUITANT AND THERE IS NO SURVIVING JOINT ANNUITANT  |
|----------------------------------------------------------------------------|
| Action under the portion of the Contract that is in the Accumulation Phase | Action under any portion of the Contract applied toAnnuity Payments |
| ···                                                         | 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 the GPWB was in effect, it ends unless the deceased Annuitant’s spouse continues the Contract.If the deceased Annuitant was not an Owner, and the Contract is owned only by an individual(s), no death benefit is payable. The Owner can name a new Annuitant subject to our approval. If the GPWB was in effect, it continues.If the deceased Annuitant was a sole Owner, we pay the Beneficiary(1) a death benefit. If the GPWB was in effect, it ends unless the deceased Owner’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 being paid at the Annuitant’s death. For more information on when any portion of the Contract applied to Traditional Annuity Payments ends, see section 3, The Annuity Phase – Traditional Annuity Payments. For more information on when any portion of the Contract applied to GMIB Payments ends, see section 4, Protected Retirement Income Made Easy: PRIME Plus Benefit – When GMIB Ends. No death benefit is payable under Annuity Options 1, 3, or 6. However, there may be a lump sum available under Annuity Options 2, 4, or 5. For more information, see section 3, The Annuity Phase – Annuity Options. |
| ·                                                                     | 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. We pay a death benefit to the surviving Joint Owner.(2) If the GPWB was in effect, it ends unless the Joint Owners were spouses and the surviving spouse who is also the Joint Owner continues the Contract. | · | If the deceased was a sole Owner, the Beneficiary becomes the Owner if the Contract continues. |
| ·                                                                     | If the deceased was a Joint Owner, the surviving Joint Owner becomes the sole Owner if the Contract continues. |
| ·                                                                     | For a description of the payout options, see the “Death Benefit Payment Options” discussion later in this section. |   |   |
| (1)                                                                        | If the Beneficiary is the spouse of the deceased Owner, he or she may be able to continue the Contract instead of receiving a death benefit payout. If the Contract continues, we increase the Contract Value to equal the death benefit if that amount is greater than the Contract Value as 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 spouse of the deceased Owner, he or she may be able to continue the Contract instead of receiving a death benefit payout. If the Contract continues, we increase the Contract Value to equal the death benefit if that amount is greater than the Contract Value as 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 spousal 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. If the Joint Owners were not spouses and they both die before we pay the death benefit, for tax reasons, we pay the estate of the Joint Owner who died last. |

----

| UPON THE DEATH OF THE ANNUITANT AND THERE IS A SURVIVING JOINT ANNUITANT(NOTE: We only allow joint Annuitants on Full Annuitization) |
|--------------------------------------------------------------------------------------------------------------------------------------|
| Action under the portion of the Contract that is in the Accumulation Phase                                                           | Action under any portion of the Contract applied toAnnuity Payments |
| ·                                                                                                                               | 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 section 3, The Annuity Phase – Annuity Options. | · | 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. |

----

| 11. | OTHER INFORMATION |
|-----|-------------------|

----

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

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

| · | costs associated with sales conferences and educational seminars for their Financial Professionals; |
|--------|-----------------------------------------------------------------------------------------------------|

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

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

| · | the level of existing sales and assets held in contracts issued by us that are sold through the broker/dealer firm and the potential for new or additional sales; |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | the organizational “fit” between the broker/dealer firm and the type of wholesaling and marketing force we operate; |
|--------|---------------------------------------------------------------------------------------------------------------------------------|

| · | whether the broker/dealer firm’s operational, IT, and support services structure and requirements are compatible with our method of operation; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | whether the broker/dealer firm’s product mix is oriented toward our core markets; |
|--------|-----------------------------------------------------------------------------------------|

| · | whether the broker/dealer firm has a structure facilitating a marketing support arrangement, such as frequent Financial Professional meetings and training sessions; |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | the potential return on investment of investing in a particular firm’s system; |
|--------|--------------------------------------------------------------------------------------|

| · | our potential ability to obtain a significant level of the market share in the broker/dealer firm’s distribution channel; |
|--------|---------------------------------------------------------------------------------------------------------------------------------|

| · | the broker/dealer firm’s Financial Professional and customer profiles; and |
|--------|----------------------------------------------------------------------------------|

| · | the prominence and reputation of the broker/dealer firm in its marketing channel. |
|--------|-----------------------------------------------------------------------------------|

----

| · | 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. |
|--------|---------|------------------------------------|

| 12. | TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION (SAI) |
|-----|--------------------------------------------------------------------|

| Allianz Life……………………………………………………...........                   | 2 | Annuity Provisions……………………………………………......... | 6      |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---|----------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Experts………………………………………………………….…....…  | 2 | Annuity Units/Calculating Annuity Payments…………….….                                                             | 7      |
| Legal Opinions……………………………………………………….                    | 2 | Mortality and Expense Risk Guarantee………………………..….                                      | 7      |
| Distributor……………………………………………………….………. | 2 | Information on May 2003 Contracts………………………..……..                                 | 7      |
| Reduction or Elimination of the Withdrawal Charge………………..                                                                                         | 3 | Information on Contracts That Were Offered                                                                                                         |   |
| Federal Tax Status…………………………………………..….…..                                 | 3 | Before April 29, 2005………………………..………..………...              | 16     |
| General…………………………………………………………...…           | 3 | Information on Original Contracts………………………….…..….                          | 17     |
| Diversification…………………………………………….…......….                          | 4 | Financial Statements…………………………………..…..……….   | 18     |
| Owner Control………………………………………………..….                                 | 5 | Appendix – Condensed Financial Information…...……..………..                                                  | 19     |
| Contracts Owned by Non-Individuals……………………..…..                                                                                 | 5 |                                                                                                                                               |   |
| Income Tax Withholding………………………………..….......                                                            | 5 |                                                                                                                                               |   |
| Required Distributions…………………………………..………                                              | 5 |                                                                                                                                               |   |
| Qualified Contracts……………………………………………...                                         | 6 |                                                                                                                                               |   |

----

| 13. | PRIVACY AND SECURITY STATEMENT |
|-----|--------------------------------|

| · | From you, either directly or through your agent. This includes information on your insurance application or other information provided during the application process or while you hold a policy with us. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| · | From your doctor or health provider. This is medical information about you, gathered with your written authorization. |
|--------|-----------------------------------------------------------------------------------------------------------------------|

| · | From a consumer reporting agency such as a medical, credit, or motor vehicle report. |
|--------|--------------------------------------------------------------------------------------|

| · | From sources using the information you provide, in order to obtain updated or additional information. An example is the U.S. Postal Service, in order to validate your current mailing address so that we may maintain records to correspond with you. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | With affiliates and service providers in order to administer or service your policy, and with research groups to conduct various studies. However, no individual is identified in any study or summary report. These companies sign a Privacy and Security Agreement with Allianz, requiring them to protect your information. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | 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 and their affiliates 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. |
|--------|-------------------------------------------------------------------------------------------------------------|

----

| Allianz Life Insurance Company of North America5701 Golden Hills DriveMinneapolis, MN 55416-1297800.950.5872www.allianzlife.com | Allianz family of companies:·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 |
|---------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | APPENDIX A – CONDENSED FINANCIAL INFORMATION |
|--------|----------------------------------------------------|

| Lowest and Highest Combination of Benefit Options                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Separate Account Annual Expenses(1) |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------|
| Allianz Alterity – Base Contract with Traditional GMDB                                                                                                                                                     | 1.50%                               |
| Allianz Alterity – Contract with Earnings Protection GMDB and PRIME Plus Benefit                                                                                                                           | 2.45%                               |

| (1) | The Separate Account annual expenses for a May 2003 Contract with the Traditional GMDB and no PRIME Benefit (1.50%) and a May 2003 Contract with the Earnings Protection GMDB and Enhanced PRIME Benefit (2.45%) are the same as the expenses for the currently offered Contract, therefore the AUV information is the same. Please see the Statement of Additional Information for more information on the May 2003 Contract. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Separate Account Annual Expenses 1.50%             | Separate Account Annual Expenses 2.45% |
|----------------------------------------------------|----------------------------------------|
| Period or Year Ended                               | AUV at Beginning of Period             | AUV at End of Period | Number of Accumulation Units Outstanding at End of Period |   | Period or Year Ended | AUV at Beginning of Period | AUV at End of Period | Number of Accumulation Units Outstanding at End of Period |
| AZL Balanced Index Strategy Fund                   |
| 12/31/2009                                         | N/A                                    | 10.033 | 15 |   | 12/31/2009 | N/A | 10.014 | 31 |
| 12/31/2010                                         | 10.033                                 | 10.921 | 23 |   | 12/31/2010 | 10.014 | 10.798 | 41 |
| 12/31/2011                                         | 10.921                                 | 11.018 | 22 |   | 12/31/2011 | 10.798 | 10.791 | 56 |
| 12/31/2012                                         | 11.018                                 | 11.970 | 14 |   | 12/31/2012 | 10.791 | 11.612 | 36 |
| AZL Franklin Templeton Founding Strategy Plus Fund |
| 12/31/2009                                         | N/A                                    | 10.216 | 4 |   | 12/31/2009 | N/A | 10.197 | 7 |
| 12/31/2010                                         | 10.216                                 | 11.072 | 9 |   | 12/31/2010 | 10.197 | 10.948 | 14 |
| 12/31/2011                                         | 11.072                                 | 10.708 | 27 |   | 12/31/2011 | 10.948 | 10.487 | 82 |
| 12/31/2012                                         | 10.708                                 | 12.106 | 39 |   | 12/31/2012 | 10.487 | 11.745 | 87 |
| AZL Gateway Fund                                   |
| 12/31/2010                                         | N/A                                    | 10.095 | 0 |   | 12/31/2010 | N/A | 10.031 | 0 |
| 12/31/2011                                         | 10.095                                 | 10.250 | 0 |   | 12/31/2011 | 10.031 | 10.088 | 10 |
| 12/31/2012                                         | 10.250                                 | 10.516 | 0 |   | 12/31/2012 | 10.088 | 10.252 | 18 |
| AZL Growth Index Strategy Fund                     |
| 12/31/2009                                         | N/A                                    | 10.065 | 43 |   | 12/31/2009 | N/A | 10.046 | 13 |
| 12/31/2010                                         | 10.065                                 | 11.245 | 42 |   | 12/31/2010 | 10.046 | 11.119 | 12 |
| 12/31/2011                                         | 11.245                                 | 11.080 | 67 |   | 12/31/2011 | 11.119 | 10.851 | 126 |
| 12/31/2012                                         | 11.080                                 | 12.368 | 61 |   | 12/31/2012 | 10.851 | 11.998 | 235 |
| AZL Invesco Equity and Income Fund                 |
| 12/31/2004                                         | N/A                                    | 10.803 | 54 |   | 12/31/2004 | N/A | 10.734 | 110 |
| 12/31/2005                                         | 10.803                                 | 11.361 | 78 |   | 12/31/2005 | 10.734 | 11.182 | 216 |
| 12/31/2006                                         | 11.361                                 | 12.593 | 129 |   | 12/31/2006 | 11.182 | 12.278 | 331 |
| 12/31/2007                                         | 12.593                                 | 12.785 | 153 |   | 12/31/2007 | 12.278 | 12.347 | 418 |
| 12/31/2008                                         | 12.785                                 | 9.582 | 132 |   | 12/31/2008 | 12.347 | 9.165 | 395 |
| 12/31/2009                                         | 9.582                                  | 11.596 | 117 |   | 12/31/2009 | 9.165 | 10.987 | 394 |
| 12/31/2010                                         | 11.596                                 | 12.764 | 109 |   | 12/31/2010 | 10.987 | 11.980 | 371 |
| 12/31/2011                                         | 12.764                                 | 12.301 | 117 |   | 12/31/2011 | 11.980 | 11.436 | 424 |
| 12/31/2012                                         | 12.301                                 | 13.560 | 117 |   | 12/31/2012 | 11.436 | 12.487 | 413 |

----

| Separate Account Annual Expenses 1.50%  | Separate Account Annual Expenses 2.45% |
|-----------------------------------------|----------------------------------------|
| Period or Year Ended                    | AUV at Beginning of Period             | AUV at End of Period | Number of Accumulation Units Outstanding at End of Period |   | Period or Year Ended | AUV at Beginning of Period | AUV at End of Period | Number of Accumulation Units Outstanding at End of Period |
| AZL Money Market Fund                   |
| 12/31/2003                              | N/A                                    | 10.369 | 46 |   | 12/31/2003 | N/A | 9.990 | 81 |
| 12/31/2004                              | 10.369                                 | 10.283 | 397 |   | 12/31/2004 | 9.990 | 9.814 | 242 |
| 12/31/2005                              | 10.283                                 | 10.391 | 413 |   | 12/31/2005 | 9.814 | 9.823 | 424 |
| 12/31/2006                              | 10.391                                 | 10.691 | 543 |   | 12/31/2006 | 9.823 | 10.012 | 463 |
| 12/31/2007                              | 10.691                                 | 11.037 | 728 |   | 12/31/2007 | 10.012 | 10.237 | 658 |
| 12/31/2008                              | 11.037                                 | 11.138 | 1090 |   | 12/31/2008 | 10.237 | 10.233 | 1401 |
| 12/31/2009                              | 11.138                                 | 10.996 | 771 |   | 12/31/2009 | 10.233 | 10.007 | 1032 |
| 12/31/2010                              | 10.996                                 | 10.833 | 614 |   | 12/31/2010 | 10.007 | 9.765 | 1001 |
| 12/31/2011                              | 10.833                                 | 10.673 | 519 |   | 12/31/2011 | 9.765 | 9.530 | 940 |
| 12/31/2012                              | 10.673                                 | 10.513 | 500 |   | 12/31/2012 | 9.530 | 9.292 | 860 |
| AZL MVP Fusion Balanced Fund            |
| 12/31/2005                              | N/A                                    | 10.623 | 216 |   | 12/31/2005 | N/A | 10.555 | 204 |
| 12/31/2006                              | 10.623                                 | 11.458 | 415 |   | 12/31/2006 | 10.555 | 11.277 | 570 |
| 12/31/2007                              | 11.458                                 | 12.089 | 633 |   | 12/31/2007 | 11.277 | 11.786 | 593 |
| 12/31/2008                              | 12.089                                 | 8.640 | 626 |   | 12/31/2008 | 11.786 | 8.344 | 696 |
| 12/31/2009                              | 8.640                                  | 10.785 | 484 |   | 12/31/2009 | 8.344 | 10.317 | 720 |
| 12/31/2010                              | 10.785                                 | 11.801 | 422 |   | 12/31/2010 | 10.317 | 11.181 | 643 |
| 12/31/2011                              | 11.801                                 | 11.521 | 344 |   | 12/31/2011 | 11.181 | 10.813 | 615 |
| 12/31/2012                              | 11.521                                 | 12.642 | 347 |   | 12/31/2012 | 10.813 | 11.752 | 570 |
| AZL MVP Fusion Conservative Fund        |
| 12/31/2009                              | N/A                                    | 10.152 | 18 |   | 12/31/2009 | N/A | 10.133 | 33 |
| 12/31/2010                              | 10.152                                 | 11.097 | 49 |   | 12/31/2010 | 10.133 | 10.972 | 54 |
| 12/31/2011                              | 11.097                                 | 11.003 | 44 |   | 12/31/2011 | 10.972 | 10.776 | 73 |
| 12/31/2012                              | 11.003                                 | 12.059 | 60 |   | 12/31/2012 | 10.776 | 11.699 | 88 |
| AZL MVP Fusion Moderate Fund            |
| 12/31/2005                              | N/A                                    | 10.801 | 271 |   | 12/31/2005 | N/A | 10.732 | 502 |
| 12/31/2006                              | 10.801                                 | 11.780 | 498 |   | 12/31/2006 | 10.732 | 11.595 | 1147 |
| 12/31/2007                              | 11.780                                 | 12.363 | 517 |   | 12/31/2007 | 11.595 | 12.053 | 1298 |
| 12/31/2008                              | 12.363                                 | 8.189 | 512 |   | 12/31/2008 | 12.053 | 7.908 | 1285 |
| 12/31/2009                              | 8.189                                  | 10.441 | 482 |   | 12/31/2009 | 7.908 | 9.987 | 1316 |
| 12/31/2010                              | 10.441                                 | 11.493 | 450 |   | 12/31/2010 | 9.987 | 10.890 | 1274 |
| 12/31/2011                              | 11.493                                 | 11.001 | 415 |   | 12/31/2011 | 10.890 | 10.325 | 1241 |
| 12/31/2012                              | 11.001                                 | 12.195 | 362 |   | 12/31/2012 | 10.325 | 11.337 | 1133 |
| BlackRock Global Allocation V.I. Fund   |
| 12/31/2008                              | N/A                                    | 7.914 | 18 |   | 12/31/2008 | N/A | 7.864 | 62 |
| 12/31/2009                              | 7.914                                  | 9.427 | 142 |   | 12/31/2009 | 7.864 | 9.278 | 175 |
| 12/31/2010                              | 9.427                                  | 10.193 | 154 |   | 12/31/2010 | 9.278 | 9.938 | 176 |
| 12/31/2011                              | 10.193                                 | 9.676 | 178 |   | 12/31/2011 | 9.938 | 9.345 | 399 |
| 12/31/2012                              | 9.676                                  | 10.481 | 196 |   | 12/31/2012 | 9.345 | 10.026 | 374 |
| Fidelity VIP FundsManager 50% Portfolio |
| 12/31/2011                              | N/A                                    | 10.719 | 0 |   | 12/31/2011 | N/A | 10.152 | 0 |
| 12/31/2012                              | 10.719                                 | 11.628 | 4 |   | 12/31/2012 | 10.152 | 10.907 | 10 |
| Fidelity VIP FundsManager 60% Portfolio |
| 12/31/2011                              | N/A                                    | 9.649 | 2 |   | 12/31/2011 | N/A | 9.257 | 0 |
| 12/31/2012                              | 9.649                                  | 10.595 | 0 |   | 12/31/2012 | 9.257 | 10.067 | 6 |

----

| Separate Account Annual Expenses 1.50%             | Separate Account Annual Expenses 2.45% |
|----------------------------------------------------|----------------------------------------|
| Period or Year Ended                               | AUV at Beginning of Period             | AUV at End of Period | Number of Accumulation Units Outstanding at End of Period |   | Period or Year Ended | AUV at Beginning of Period | AUV at End of Period | Number of Accumulation Units Outstanding at End of Period |
| Franklin High Income Securities Fund               |
| 12/31/2003                                         | N/A                                    | 20.747 | 48 |   | 12/31/2003 | N/A | 18.030 | 27 |
| 12/31/2004                                         | 20.747                                 | 22.455 | 74 |   | 12/31/2004 | 18.030 | 19.329 | 75 |
| 12/31/2005                                         | 22.455                                 | 22.855 | 84 |   | 12/31/2005 | 19.329 | 19.488 | 109 |
| 12/31/2006                                         | 22.855                                 | 24.624 | 68 |   | 12/31/2006 | 19.488 | 20.798 | 130 |
| 12/31/2007                                         | 24.624                                 | 24.914 | 88 |   | 12/31/2007 | 20.798 | 20.843 | 134 |
| 12/31/2008                                         | 24.914                                 | 18.805 | 77 |   | 12/31/2008 | 20.843 | 15.583 | 119 |
| 12/31/2009                                         | 18.805                                 | 26.434 | 67 |   | 12/31/2009 | 15.583 | 21.698 | 150 |
| 12/31/2010                                         | 26.434                                 | 29.493 | 80 |   | 12/31/2010 | 21.698 | 23.980 | 125 |
| 12/31/2011                                         | 29.493                                 | 30.380 | 62 |   | 12/31/2011 | 23.980 | 24.468 | 100 |
| 12/31/2012                                         | 30.380                                 | 34.582 | 45 |   | 12/31/2012 | 24.468 | 27.587 | 94 |
| Franklin Income Securities Fund                    |
| 12/31/2003                                         | N/A                                    | 35.607 | 24 |   | 12/31/2003 | N/A | 30.943 | 13 |
| 12/31/2004                                         | 35.607                                 | 39.935 | 75 |   | 12/31/2004 | 30.943 | 34.375 | 87 |
| 12/31/2005                                         | 39.935                                 | 39.973 | 150 |   | 12/31/2005 | 34.375 | 34.084 | 183 |
| 12/31/2006                                         | 39.973                                 | 46.562 | 218 |   | 12/31/2006 | 34.084 | 39.328 | 271 |
| 12/31/2007                                         | 46.562                                 | 47.588 | 266 |   | 12/31/2007 | 39.328 | 39.812 | 285 |
| 12/31/2008                                         | 47.588                                 | 32.976 | 244 |   | 12/31/2008 | 39.812 | 27.326 | 250 |
| 12/31/2009                                         | 32.976                                 | 44.048 | 229 |   | 12/31/2009 | 27.326 | 36.156 | 230 |
| 12/31/2010                                         | 44.048                                 | 48.890 | 210 |   | 12/31/2010 | 36.156 | 39.751 | 215 |
| 12/31/2011                                         | 48.890                                 | 49.313 | 178 |   | 12/31/2011 | 39.751 | 39.716 | 193 |
| 12/31/2012                                         | 49.313                                 | 54.720 | 165 |   | 12/31/2012 | 39.716 | 43.653 | 178 |
| Franklin U.S. Government Fund                      |
| 12/31/2003                                         | N/A                                    | 23.183 | 65 |   | 12/31/2003 | N/A | 20.147 | 34 |
| 12/31/2004                                         | 23.183                                 | 23.631 | 104 |   | 12/31/2004 | 20.147 | 20.341 | 120 |
| 12/31/2005                                         | 23.631                                 | 23.839 | 143 |   | 12/31/2005 | 20.341 | 20.327 | 170 |
| 12/31/2006                                         | 23.839                                 | 24.429 | 157 |   | 12/31/2006 | 20.327 | 20.633 | 175 |
| 12/31/2007                                         | 24.429                                 | 25.653 | 175 |   | 12/31/2007 | 20.633 | 21.461 | 191 |
| 12/31/2008                                         | 25.653                                 | 27.188 | 170 |   | 12/31/2008 | 21.461 | 22.529 | 265 |
| 12/31/2009                                         | 27.188                                 | 27.612 | 150 |   | 12/31/2009 | 22.529 | 22.665 | 221 |
| 12/31/2010                                         | 27.612                                 | 28.638 | 112 |   | 12/31/2010 | 22.665 | 23.284 | 196 |
| 12/31/2011                                         | 28.638                                 | 29.815 | 103 |   | 12/31/2011 | 23.284 | 24.013 | 192 |
| 12/31/2012                                         | 29.815                                 | 29.923 | 72 |   | 12/31/2012 | 24.013 | 23.871 | 143 |
| PIMCO VIT All Asset Portfolio                      |
| 12/31/2004                                         | N/A                                    | 11.870 | 114 |   | 12/31/2004 | N/A | 11.794 | 83 |
| 12/31/2005                                         | 11.870                                 | 12.422 | 366 |   | 12/31/2005 | 11.794 | 12.227 | 217 |
| 12/31/2006                                         | 12.422                                 | 12.808 | 305 |   | 12/31/2006 | 12.227 | 12.487 | 187 |
| 12/31/2007                                         | 12.808                                 | 13.667 | 177 |   | 12/31/2007 | 12.487 | 13.198 | 182 |
| 12/31/2008                                         | 13.667                                 | 11.330 | 149 |   | 12/31/2008 | 13.198 | 10.838 | 192 |
| 12/31/2009                                         | 11.330                                 | 13.569 | 160 |   | 12/31/2009 | 10.838 | 12.857 | 169 |
| 12/31/2010                                         | 13.569                                 | 15.117 | 202 |   | 12/31/2010 | 12.857 | 14.188 | 288 |
| 12/31/2011                                         | 15.117                                 | 15.183 | 169 |   | 12/31/2011 | 14.188 | 14.116 | 299 |
| 12/31/2012                                         | 15.183                                 | 17.191 | 140 |   | 12/31/2012 | 14.116 | 15.831 | 286 |
| PIMCO VIT Emerging Markets Bond Portfolio          |
| 12/31/2005                                         | N/A                                    | 10.920 | 3 |   | 12/31/2005 | N/A | 10.851 | 23 |
| 12/31/2006                                         | 10.920                                 | 11.756 | 23 |   | 12/31/2006 | 10.851 | 11.571 | 37 |
| 12/31/2007                                         | 11.756                                 | 12.254 | 37 |   | 12/31/2007 | 11.571 | 11.947 | 45 |
| 12/31/2008                                         | 12.254                                 | 10.309 | 38 |   | 12/31/2008 | 11.947 | 9.955 | 44 |
| 12/31/2009                                         | 10.309                                 | 13.262 | 37 |   | 12/31/2009 | 9.955 | 12.686 | 50 |
| 12/31/2010                                         | 13.262                                 | 14.655 | 49 |   | 12/31/2010 | 12.686 | 13.885 | 131 |
| 12/31/2011                                         | 14.655                                 | 15.351 | 43 |   | 12/31/2011 | 13.885 | 14.408 | 94 |
| 12/31/2012                                         | 15.351                                 | 17.829 | 33 |   | 12/31/2012 | 14.408 | 16.574 | 84 |
| PIMCO VIT Global Advantage Strategy Bond Portfolio |
| 12/31/2011                                         | N/A                                    | 9.807 | 9 |   | 12/31/2011 | N/A | 9.745 | 0 |
| 12/31/2012                                         | 9.807                                  | 10.259 | 2 |   | 12/31/2012 | 9.745 | 10.097 | 3 |

----

| Separate Account Annual Expenses 1.50%     | Separate Account Annual Expenses 2.45% |
|--------------------------------------------|----------------------------------------|
| Period or Year Ended                       | AUV at Beginning of Period             | AUV at End of Period | Number of Accumulation Units Outstanding at End of Period |   | Period or Year Ended | AUV at Beginning of Period | AUV at End of Period | Number of Accumulation Units Outstanding at End of Period |
| PIMCO VIT Global Bond Portfolio (Unhedged) |
| 12/31/2005                                 | N/A                                    | 9.343 | 29 |   | 12/31/2005 | N/A | 9.283 | 23 |
| 12/31/2006                                 | 9.343                                  | 9.632 | 47 |   | 12/31/2006 | 9.283 | 9.480 | 45 |
| 12/31/2007                                 | 9.632                                  | 10.412 | 63 |   | 12/31/2007 | 9.480 | 10.151 | 66 |
| 12/31/2008                                 | 10.412                                 | 10.170 | 88 |   | 12/31/2008 | 10.151 | 9.821 | 122 |
| 12/31/2009                                 | 10.170                                 | 11.709 | 97 |   | 12/31/2009 | 9.821 | 11.200 | 122 |
| 12/31/2010                                 | 11.709                                 | 12.879 | 101 |   | 12/31/2010 | 11.200 | 12.203 | 139 |
| 12/31/2011                                 | 12.879                                 | 13.649 | 128 |   | 12/31/2011 | 12.203 | 12.810 | 133 |
| 12/31/2012                                 | 13.649                                 | 14.379 | 81 |   | 12/31/2012 | 12.810 | 13.367 | 99 |
| PIMCO VIT Global Multi-Asset Portfolio     |
| 12/31/2009                                 | N/A                                    | 10.009 | 10 |   | 12/31/2009 | N/A | 9.990 | 0 |
| 12/31/2010                                 | 10.009                                 | 10.979 | 29 |   | 12/31/2010 | 9.990 | 10.856 | 37 |
| 12/31/2011                                 | 10.979                                 | 10.629 | 26 |   | 12/31/2011 | 10.856 | 10.410 | 77 |
| 12/31/2012                                 | 10.629                                 | 11.398 | 16 |   | 12/31/2012 | 10.410 | 11.058 | 55 |
| PIMCO VIT High Yield Portfolio             |
| 12/31/2003                                 | N/A                                    | 11.267 | 80 |   | 12/31/2003 | N/A | 10.855 | 38 |
| 12/31/2004                                 | 11.267                                 | 12.160 | 191 |   | 12/31/2004 | 10.855 | 11.605 | 173 |
| 12/31/2005                                 | 12.160                                 | 12.474 | 237 |   | 12/31/2005 | 11.605 | 11.792 | 208 |
| 12/31/2006                                 | 12.474                                 | 13.407 | 192 |   | 12/31/2006 | 11.792 | 12.555 | 217 |
| 12/31/2007                                 | 13.407                                 | 13.670 | 230 |   | 12/31/2007 | 12.555 | 12.679 | 214 |
| 12/31/2008                                 | 13.670                                 | 10.296 | 188 |   | 12/31/2008 | 12.679 | 9.459 | 231 |
| 12/31/2009                                 | 10.296                                 | 14.244 | 206 |   | 12/31/2009 | 9.459 | 12.963 | 280 |
| 12/31/2010                                 | 14.244                                 | 16.067 | 189 |   | 12/31/2010 | 12.963 | 14.483 | 306 |
| 12/31/2011                                 | 16.067                                 | 16.361 | 159 |   | 12/31/2011 | 14.483 | 14.609 | 254 |
| 12/31/2012                                 | 16.361                                 | 18.425 | 109 |   | 12/31/2012 | 14.609 | 16.296 | 219 |
| PIMCO VIT Real Return Portfolio            |
| 12/31/2003                                 | N/A                                    | 10.509 | 56 |   | 12/31/2003 | N/A | 10.442 | 47 |
| 12/31/2004                                 | 10.509                                 | 11.275 | 190 |   | 12/31/2004 | 10.442 | 11.098 | 237 |
| 12/31/2005                                 | 11.275                                 | 11.341 | 300 |   | 12/31/2005 | 11.098 | 11.057 | 349 |
| 12/31/2006                                 | 11.341                                 | 11.253 | 323 |   | 12/31/2006 | 11.057 | 10.867 | 330 |
| 12/31/2007                                 | 11.253                                 | 12.267 | 276 |   | 12/31/2007 | 10.867 | 11.734 | 305 |
| 12/31/2008                                 | 12.267                                 | 11.231 | 274 |   | 12/31/2008 | 11.734 | 10.641 | 347 |
| 12/31/2009                                 | 11.231                                 | 13.099 | 253 |   | 12/31/2009 | 10.641 | 12.294 | 376 |
| 12/31/2010                                 | 13.099                                 | 13.951 | 226 |   | 12/31/2010 | 12.294 | 12.969 | 370 |
| 12/31/2011                                 | 13.951                                 | 15.349 | 204 |   | 12/31/2011 | 12.969 | 14.134 | 383 |
| 12/31/2012                                 | 15.349                                 | 16.443 | 174 |   | 12/31/2012 | 14.134 | 14.999 | 320 |
| PIMCO VIT Total Return Portfolio           |
| 12/31/2003                                 | N/A                                    | 12.665 | 138 |   | 12/31/2003 | N/A | 12.202 | 126 |
| 12/31/2004                                 | 12.665                                 | 13.086 | 290 |   | 12/31/2004 | 12.202 | 12.489 | 316 |
| 12/31/2005                                 | 13.086                                 | 13.208 | 385 |   | 12/31/2005 | 12.489 | 12.486 | 415 |
| 12/31/2006                                 | 13.208                                 | 13.513 | 386 |   | 12/31/2006 | 12.486 | 12.654 | 513 |
| 12/31/2007                                 | 13.513                                 | 14.477 | 419 |   | 12/31/2007 | 12.654 | 13.428 | 518 |
| 12/31/2008                                 | 14.477                                 | 14.946 | 399 |   | 12/31/2008 | 13.428 | 13.731 | 532 |
| 12/31/2009                                 | 14.946                                 | 16.795 | 437 |   | 12/31/2009 | 13.731 | 15.284 | 688 |
| 12/31/2010                                 | 16.795                                 | 17.888 | 443 |   | 12/31/2010 | 15.284 | 16.125 | 662 |
| 12/31/2011                                 | 17.888                                 | 18.259 | 371 |   | 12/31/2011 | 16.125 | 16.304 | 629 |
| 12/31/2012                                 | 18.259                                 | 19.713 | 302 |   | 12/31/2012 | 16.304 | 17.435 | 633 |
| PIMCO VIT Unconstrained Bond Portfolio     |
| 12/31/2011                                 | N/A                                    | 9.795 | 20 |   | 12/31/2011 | N/A | 9.733 | 7 |
| 12/31/2012                                 | 9.795                                  | 10.396 | 6 |   | 12/31/2012 | 9.733 | 10.232 | 5 |

----

| Separate Account Annual Expenses 1.50% | Separate Account Annual Expenses 2.45% |
|----------------------------------------|----------------------------------------|
| Period or Year Ended                   | AUV at Beginning of Period             | AUV at End of Period | Number of Accumulation Units Outstanding at End of Period |   | Period or Year Ended | AUV at Beginning of Period | AUV at End of Period | Number of Accumulation Units Outstanding at End of Period |
| Templeton Global Bond Securities Fund  |
| 12/31/2007                             | N/A                                    | 31.790 | 13 |   | 12/31/2007 | N/A | 26.726 | 19 |
| 12/31/2008                             | 31.790                                 | 33.259 | 36 |   | 12/31/2008 | 26.726 | 27.696 | 31 |
| 12/31/2009                             | 33.259                                 | 38.885 | 40 |   | 12/31/2009 | 27.696 | 32.075 | 57 |
| 12/31/2010                             | 38.885                                 | 43.841 | 42 |   | 12/31/2010 | 32.075 | 35.820 | 63 |
| 12/31/2011                             | 43.841                                 | 42.813 | 42 |   | 12/31/2011 | 35.820 | 34.651 | 73 |
| 12/31/2012                             | 42.813                                 | 48.526 | 50 |   | 12/31/2012 | 34.651 | 38.901 | 76 |

----

|   | APPENDIX B – PB VALUE CALCULATION EXAMPLES |
|--------|--------------------------------------------------|

| · | You purchased a Contract with PRIME Plus Benefit. You are the only Owner. |
|--------|---------------------------------------------------------------------------|

| · | You made an initial Purchase Payment of $100,000. |
|--------|---------------------------------------------------|

| · | You make an additional Purchase Payment of $10,000 in the sixth Contract Year and allocate the entire amount to the Investment Options. You make no other Purchase Payments. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The MAV on the ninth Contract Anniversary is $180,000. |
|--------|--------------------------------------------------------|

| · | You take a partial withdrawal of $20,000 in the tenth Contract Year when the Contract Value (on the day of but before the partial withdrawal) is $160,000. You take no other partial withdrawals. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The Contract Value on the tenth Contract Anniversary is $140,000. |
|--------|-------------------------------------------------------------------|

| · | As of the tenth Contract Anniversary you have not yet reached your 81st birthday and the Contracts have not exceeded the limits on volatility or risk that trigger allocation and transfer restrictions under PRIME Plus Benefit. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| On the tenth Contract Anniversary, the PB Value is equal to 1 or 2: |                                                                                                                                                                                                                                                                                          |
|---------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1)                                                                  | The 7% AIA                                                                                                                                                                                                                                                                               |   |
|                                                                | Initial Purchase Payment………………………………………………………………………………………………….. | $100,000.00 |
|                                                                | Increased by 7% on the first Contract Anniversary……………………………………………………………………..                                                     | x 1.07 |
|                                                                |                                                                                                                                                                                                                                                                                          | $107,000.00 |
|                                                                | Increased by 7% on the second Contract Anniversary…………………………………………………………………                                                             | x 1.07 |
|                                                                |                                                                                                                                                                                                                                                                                          | $114,490.00 |
|                                                                |                                                                                                                                                                                                                                                                                          |   |
|                                                                | Beginning on the sixth Contract Anniversary we only apply the 7% increase to the 7% AIA amount asof the fifth Contract Anniversary.                                                                                                                                                      |
|                                                                |                                                                                                                                                                                                                                                                                          |
|                                                                | On the sixth Contract Anniversary the 7% AIA is:                                                                                                                                                                                                                                         |   |
|                                                                |                                                                                                                                                                                                                                                                                          | The fifth Contract Anniversary 7% AIA………………………………………………………………………………. | $140,255.17 |
|                                                                |                                                                                                                                                                                                                                                                                          | Increased by 7% on the sixth Contract Anniversary……………………………………………………………….. | x 1.07 |
|                                                                |                                                                                                                                                                                                                                                                                          | $150,073.03 |
|                                                                | Plus the additional Purchase Payment received in the sixth Contract Year…………………………………………                                                                                                      | + 10,000.00 |
|                                                                |                                                                                                                                                                                                                                                                                          | $160,073.03 |
|                                                                | On the seventh Contract Anniversary the 7% AIA is:                                                                                                                                                                                                                                       |   |
|                                                                |                                                                                                                                                                                                                                                                                          | The fifth Contract Anniversary 7% AIA………………………………………………………………………………. | $140,255.17 |
|                                                                |                                                                                                                                                                                                                                                                                          | Increased by 7% on the sixth Contract Anniversary……………………………………………………………….. | x 1.07 |
|                                                                |                                                                                                                                                                                                                                                                                          | $150,073.03 |
|                                                                | Increased by 7% on the seventh Contract Anniversary………………………………………………………………..                                                                 | x 1.07 |
|                                                                |                                                                                                                                                                                                                                                                                          | $160,578.14 |
|                                                                | Plus the additional Purchase Payment received in the sixth Contract Year…………………………………………                                                                                                      | + 10,000.00 |
|                                                                |                                                                                                                                                                                                                                                                                          | $170,758.14 |
|                                                                |                                                                                                                                                                                                                                                                                          |   |
|                                                                | On the ninth Contract Anniversary the 7% AIA is:………………………………………………………………………                                            | $193,845.92 |
|                                                                | On the tenth Contract Anniversary the 7% AIA is:                                                                                                                                                                                                                                         |   |
|                                                                |                                                                                                                                                                                                                                                                                          | The fifth Contract Anniversary 7% AIA increased by 7% for |   |
|                                                                |                                                                                                                                                                                                                                                                                          |   | each anniversary since, up to and including the tenth:……………………………………………………….. | $196,715.14 |
|                                                                |                                                                                                                                                                                                                                                                                          | Plus the additional Purchase Payment received in the sixth Contract Year…………………………………….. | + 10,000.00 |
|                                                                |                                                                                                                                                                                                                                                                                          | Reduced proportionately by the percentage of Contract Value withdrawn |   |
|                                                                |                                                                                                                                                                                                                                                                                          |   | during the tenth Contract Year:  ($20,000 / $160,000) = 0.125 x $193,845.92 =………………………….. | – 24,230.74 |
|                                                                |                                                                                                                                                                                                                                                                                          | $182,484.40 |

----

|   | Verifying that the 7% AIA is within the maximum limit:                                                                                                                                                                                           |                                                                                                                                                                                                                                      |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                  | 2 times Purchase Payments made in the first five Contract Years: 2 x $100,000 =…………………………….                                                                             | $200,000 |
|   |                                                                                                                                                                                                                                                  | Reduced proportionately by the percentage of Contract Value withdrawn:                                                                                                                                                                    |   |
|   |                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                      | ($20,000 / $160,000) = 0.125 x $200,000 =……………………………………………………………………. | – 25,000 |
|   |                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                      | $175,000 |
|   | Therefore the 7% AIA on the tenth Contract Anniversary is limited to the maximum………………………….                                                                                          | $175,000                                                                                                                                                                                                                                  |
|   |                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                      |
| 2)     | The MAV                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                      |
|   | The MAV on the ninth Contract Anniversary……………………………………………………………………………. | $180,000                                                                                                                                                                                                                                  |
|   | Reduced proportionately by the percentage of Contract Value withdrawn:                                                                                                                                                                                |                                                                                                                                                                                                                                      |
|   |                                                                                                                                                                                                                                                  | ($20,000 / $160,000) = 0.125 x $180,000 =………………………………………………………………………... | – 22,500 |
|   |                                                                                                                                                                                                                                                  | $157,500                                                                                                                                                                                                                                  |

| * | Step ups continue to happen automatically until the earliest of:  a) the older Owner’s 91st birthday; or b) you exhaust the PB Value. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | APPENDIX C – GPWB UNDER PRIME PLUS BENEFIT |
|--------|--------------------------------------------------|

| · | On the tenth Contract Anniversary you exercise the GPWB and select the 5% payment option with annual payments. |
|--------|----------------------------------------------------------------------------------------------------------------|

| · | On the tenth Contract Anniversary the PB Value is the 7% AIA, which is $175,000, and your Contract Value is $140,000 (see the example that appears in Appendix B). |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | You elect the maximum allowable payment and your annual GPWB Payments are 5% x $175,000 = $8,750. You take no Excess Withdrawals and do not elect to stop your GPWB Payments. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                         | Contract Value | PB Value | GPWB Payment |
|----------------------------------------------|----------------|----------|--------------|
| On the 10th Contract Anniversary             | $140,000       | $175,000 | $8,750       |
| 11th Contract Anniversary                    | $144,800       | $166,250 | $8,750       |
| 12th Contract Anniversary                    | $151,900       | $157,500 | $8,750       |
| 13th Contract Anniversary before the step up | $160,000       | $148,750 | $8,750       |
| 13th Contract Anniversary after the step up  | $160,000       | $160,000 | $8,750       |
| 14th Contract Anniversary                    | $151,700       | $151,250 | $8,750       |
| 15th Contract Anniversary                    | $144,300       | $142,500 | $8,750       |
| 16th Contract Anniversary before the step up | $132,900       | $133,750 | $8,750       |
| 16th Contract Anniversary after the step up  | $132,900       | $133,750 | $8,750       |

| · | In this example, the PB Value was stepped up on the 13th Contract Anniversary because the Contract Value was greater than the PB Value. However, the GPWB Maximum was not stepped up because the current GPWB Maximum ($8,750) was greater than 5% of the increased PB Value (5% x $160,000 = $8,000). |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | There was no step up to either the PB Value or the GPWB Payment on the 16th Contract Anniversary in this example because the Contract Value was less than the PB Value. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | If on the 16th Contract Anniversary the Contract Value had grown to $180,000, the remaining PB Value would be stepped up to $180,000. The GPWB Maximum would also be stepped up because 5% of the increased PB Value (5% x $180,000 = $9,000) is greater than the current GPWB Maximum ($8,750), however, you would not be able to increase your GPWB Payments until the 17th Contract Anniversary because we do not automatically increase your GPWB Payments upon a step up. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Continue the assumptions from the previous example except that you elect to receive $600 per month as your GPWB Payment. If you do not take any Excess Withdrawals you would receive $7,200 of GPWB Payments over the course of each Contract Year without incurring a withdrawal charge. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Assume the Contract Value on the day of (but before) the Excess Withdrawal is $150,000. The PB Value on the day of (but before) the Excess Withdrawal is $170,200. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| The GPWB Maximum………………………………………………………………………………………………... | $8,750        |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------|
| First eight GPWB Payments…………………………………………………………………………………………         | – 4,800 |
| Remaining GPWB Maximum………………………………………………………………………………………..                 | $3,950        |
| Portion of the Excess Withdrawal that is subject to the withdrawal charge = $5,000 – $3,950 =……………                                                                                                                                          | $1,050        |

----

| The PB Value on the day of (but before) the partial withdrawal…………………………………………………                      | $170,200.00                                                                                                    |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------|
| The amount of the Excess Withdrawal that does not exceed the GPWB Maximum………………………….                                                                         | –  3,950.00                                                                                    |
| Reduced proportionately by the remaining amount of the Excess Withdrawal’s percentage of Contract                                                                                                                  |                                                                                                           |
|                                                                                                                                                                                                                     | Value on the day of (but before) the partial withdrawal = $1,050 / $150,000 = 0.007 x $170,200 =…… | – 1,191.40 |
| Remaining PB Value after the Excess Withdrawal……………………………………………………………….. | $165,058.60                                                                                                    |

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

----

|   | APPENDIX D – DEATH BENEFIT CALCULATION EXAMPLES |
|--------|-------------------------------------------------------|

| · | You purchased a Contract with an initial Purchase Payment of $100,000. You are the only Owner and are age 69 or younger on the Issue Date. You make no additional Purchase Payments. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The MAV on the ninth Contract Anniversary is $180,000. |
|--------|--------------------------------------------------------|

| · | You take a partial withdrawal of $20,000 in the tenth Contract Year when the Contract Value on the date of (but before the partial withdrawal) is $160,000. The withdrawal charge period on the initial Purchase Payment has expired so there is no withdrawal charge on this partial withdrawal. You take no other partial withdrawals. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The Contract Value on the tenth Contract Anniversary is $140,000. |
|--------|-------------------------------------------------------------------|

| If you selected Traditional GMDB:                                                                         |                                                                                                                                                                                                                                                                                               |
|-----------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| We calculate the death benefit on the tenth Contract Anniversary as the greater of:                       |                                                                                                                                                                                                                                                                                               |
| 1)                                                                                                        | Contract Value………………………………………………………………………………………………………... | $140,000 |
| 2)                                                                                                        | The Traditional GMDB value:                                                                                                                                                                                                                                                                        |   |
|                                                                                                      | Total Purchase Payments received…………………………………………………………………………………                                          | $100,000 |
|                                                                                                      |                                                                                                                                                                                                                                                                                               | Reduced proportionately by the percentage of Contract Value |   |
|                                                                                                      |                                                                                                                                                                                                                                                                                               |   | withdrawn: ($20,000 / $160,000) = 0.125 x $100,000 =………………………………………………….. | – 12,500 |
|                                                                                                      |                                                                                                                                                                                                                                                                                               | $87,500 |
| Therefore, the death benefit payable as of the tenth Contract Anniversary is the $140,000 Contract Value. |

| If you selected Enhanced GMDB:                                                      |                                                                                                                                                                                                                                                                                               |
|-------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| We calculate the death benefit on the tenth Contract Anniversary as the greater of: |                                                                                                                                                                                                                                                                                               |
| 1)                                                                                  | Contract Value………………………………………………………………………………………………………... | $140,000.00 |
| 2)                                                                                  | The 3% AIA:                                                                                                                                                                                                                                                                                        |   |
|                                                                                | Initial Purchase Payment………….…………………………………………………………………………………                     | $100,000.00 |
|                                                                                |                                                                                                                                                                                                                                                                                               | Increased by 3% on the first Contract Aniversary…………………………………………………………….. | x 1.03 |
|                                                                                |                                                                                                                                                                                                                                                                                               |   | $103,000.00 |
|                                                                                |                                                                                                                                                                                                                                                                                               | Increased by 3% on the second Contract Aniversary……….……………………………………………….. | x 1.03 |
|                                                                                |                                                                                                                                                                                                                                                                                               |   | 106,090.00 |
|                                                                                |                                                                                                                                                                                                                                                                                               | Increased by 3% on the third Contract Aniversary……………..…………………………………………….. | x 1.03 |
|                                                                                |                                                                                                                                                                                                                                                                                               |   | $109,272.70 |
|                                                                                |                                                                                                                                                                                                                                                                                               | On the ninth Contract Anniversary the 3% AIA is…………………………………………………………….. | $130,477.32 |
|                                                                                |                                                                                                                                                                                                                                                                                               |   | Reduced proportionately by the percentage of Contract Value withdrawn: |   |
|                                                                                |                                                                                                                                                                                                                                                                                               |   |   | ($20,000 / $160,000) = 0.125 x $130,477.32 =………………………………………………………... | – 16,309.66 |
|                                                                                |                                                                                                                                                                                                                                                                                               |   |   |   | $114,167.66 |
|                                                                                |                                                                                                                                                                                                                                                                                               | Increased by 3% on the tenth Contract Anniversary………………………………………………………….. | x 1.03 |
|                                                                                |                                                                                                                                                                                                                                                                                               |   | $117,592.69 |
|                                                                                |                                                                                                                                                                                                                                                                                               | Verifying that the 3% AIA is within the maximum limit: |   |
|                                                                                |                                                                                                                                                                                                                                                                                               |   | 1.5 times Purchase Payments: 1.5 x $100,000 =……………………………………….. | $150,000 |   |
|                                                                                |                                                                                                                                                                                                                                                                                               |   | Reduced proportionately by the percentage of Contract Value withdrawn: |   |   |
|                                                                                |                                                                                                                                                                                                                                                                                               |   |   | ($20,000 / $160,000) = 0.125 x $150,000 =………………………………………….. | – 18,750 |   |
|                                                                                |                                                                                                                                                                                                                                                                                               |   |   |   | $131,250 |   |

----

| 3)                                                                                             | The MAV:                                                                                                                                                                                                                                |                                                                   |
|------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------|
|                                                                                           | The MAV on the ninth Contract Anniversary………………………………………………………………………. | $180,000                                                               |
|                                                                                           |                                                                                                                                                                                                                                    | Reduced proportionately by the percentage of Contract Value withdrawn: |   |
|                                                                                           |                                                                                                                                                                                                                                    |                                                                   | ($20,000 / $160,000) = 0.125 x $180,000 =……………………………………………………………….. | – 22,500 |
|                                                                                           |                                                                                                                                                                                                                                    | $157,500                                                               |
| Therefore, the death benefit payable as of the tenth Contract Anniversary is the $157,500 MAV. |

| If you selected Earnings Protection GMDB:                                                          |                                                                                                                                                                                                                                                                                               |
|----------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| We calculate the death benefit on the tenth Contract Anniversary as the greater of:                |                                                                                                                                                                                                                                                                                               |
| 1)                                                                                                 | Contract Value………………………………………………………………………………………………………... | $140,000 |
| 2)                                                                                                 | Total Purchase Payments:                                                                                                                                                                                                                                                                           |   |
|                                                                                               | Total Purchase Payments received…………………………………………………………………………………                                          | $100,000 |
|                                                                                               |                                                                                                                                                                                                                                                                                               | Less adjusted partial withdrawals calculated as (PW x DB) / CV: |   |
|                                                                                               |                                                                                                                                                                                                                                                                                               |   | ($20,000 x $160,000) / $160,000 = $20,000 x 1 =………………………………………………………… | – 20,000 |
|                                                                                               |                                                                                                                                                                                                                                                                                               |   | $80,000 |
| 3)                                                                                                 | CV Plus:                                                                                                                                                                                                                                                                                           |   |
|                                                                                               | Contract Value………………………………………………………………………………………………………... | $140,000 |
|                                                                                               |                                                                                                                                                                                                                                                                                               | Plus 50% of the lesser of (a) or (b). |   |
|                                                                                               |                                                                                                                                                                                                                                                                                               |   | (a) Contract Vaue minus total Purchase Payments: $140,000 – $100,000 =.……….. | $40,000 |   |
|                                                                                               |                                                                                                                                                                                                                                                                                               |   | (b)     Three times your total Purchase Payments received in the first two |   |   |
|                                                                                               |                                                                                                                                                                                                                                                                                               |   |   | Contract Years: 3 x $100,000………………………………………………………….. | $300,000 |   |
|                                                                                               |                                                                                                                                                                                                                                                                                               |   | (a) is less than (b), so 50% of (a) = 0.50 x $40,000 =…………………………………………………….. | + 20,000 |
|                                                                                               |                                                                                                                                                                                                                                                                                               | $160,000 |
| Therefore, the death benefit payable as of the tenth Contract Anniversary is the $160,000 CV Plus. |

----

|   | APPENDIX E – WITHDRAWAL CHARGE EXAMPLES |
|--------|-----------------------------------------------|

|   | Full withdrawal when the Contract Value has declined due to a loss in your selected Investment Options: |
|--------|---------------------------------------------------------------------------------------------------------|

| · | You take a full withdrawal in the third Contract Year when the Contract Value is $90,000 and the withdrawal charge is 5%. You have taken no other withdrawals from the Contract. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | There are no Purchase Payments that are beyond the withdrawal charge period and the partial withdrawal privilege does not apply upon a full withdrawal. Because this is a full withdrawal, we assess the withdrawal charge against the entire Withdrawal Charge Basis. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| We calculate the withdrawal charge as follows: |                                                                                                                                                                                                                                                     |
|------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                           | The Withdrawal Charge Basis is equal to total Purchase Payments less any Purchase Payments                                                                                                                                                               |   |
|                                           | withdrawn (excluding any penalty-free withdrawals) = $100,000 – $0 = ……………….……….....................                                                                                         | $100,000 |
|                                           | Multiplied by the withdrawal charge………………………………………………………………………………... | x  5% |
|                                           |                                                                                                                                                                                                                                                     | $5,000 |

|   | Partial withdrawal under the partial withdrawal privilege followed by a full withdrawal: |
|--------|------------------------------------------------------------------------------------------|

| · | You take a partial withdrawal of $9,000 in the second Contract Year. The total amount available under the partial withdrawal privilege at this time is $24,000 ($12,000 per year for two years). The $9,000 withdrawn is not subject to a withdrawal charge and does not reduce the Withdrawal Charge Basis. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | You take a full withdrawal in the third Contract Year when the Contract Value is $90,000 and the withdrawal charge is 5%. At this time, there are no Purchase Payments that are beyond the withdrawal charge period. Because this is a full withdrawal, the partial withdrawal privilege does not apply and we assess the withdrawal charge against the entire Withdrawal Charge Basis. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| We calculate the withdrawal charge for the full withdrawal as follows: |                                                                                                                                                                                                                                                     |
|------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                   | The Withdrawal Charge Basis is equal to total Purchase Payments less any Purchase Payments                                                                                                                                                               |   |
|                                                                   | withdrawn (excluding any penalty-free withdrawals) = $100,000 – $0 = ……………….……….....................                                                                                         | $100,000 |
|                                                                   | Multiplied by the withdrawal charge………………………………………………………………………………... | x  5% |
|                                                                   |                                                                                                                                                                                                                                                     | $5,000 |

|   | Partial withdrawal in excess of the partial withdrawal privilege followed by a full withdrawal: |
|--------|-------------------------------------------------------------------------------------------------|

| · | You take a partial withdrawal of $27,000 in the second Contract Year when the withdrawal charge is 6%. The total amount available under the partial withdrawal privilege at this time is $24,000 ($12,000 per year for two years), so $3,000 of the withdrawal is subject to a withdrawal charge and reduces the Withdrawal Charge Basis. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| We calculate the withdrawal charge for the partial withdrawal as follows: |                                                                                                                                                                                                                                                     |
|---------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                      | The amount you receive that is subject to a withdrawal ....………………………….……….....................                                                                             | $3,000 |
|                                                                      | Multiplied by the withdrawal charge………………………………………………………………………………... | x  6% |
|                                                                      |                                                                                                                                                                                                                                                     | $180 |

----

| · | Continuing the example, assume you take a full withdrawal in the third Contract Year when the Contract Value is $90,000 and the withdrawal charge is 5%. At this time, there are no Purchase Payments that are beyond the withdrawal charge period. Because this is a full withdrawal, the partial withdrawal privilege does not apply and we assess the withdrawal charge against the entire Withdrawal Charge Basis. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| We calculate the withdrawal charge for the full withdrawal as follows: |                                                                                                                                                                                                                                                     |
|------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                   | The Withdrawal Charge Basis is equal to total Purchase Payments less any Purchase Payments                                                                                                                                                               |   |
|                                                                   | withdrawn (excluding any penalty-free withdrawals) = $100,000 – $3,000 =………….……….....................                                                                                                    | $97,000 |
|                                                                   | Multiplied by the withdrawal charge………………………………………………………………………………... | x  5% |
|                                                                   |                                                                                                                                                                                                                                                     | $4,850 |

|   | A series of partial withdrawals under the partial withdrawal privilege followed by a full withdrawal: |
|--------|-------------------------------------------------------------------------------------------------------|

| · | You take the maximum amount available under the partial withdrawal privilege each year for five years (total distributions = $60,000). The $60,000 withdrawn is not subject to a withdrawal charge and does not reduce the Withdrawal Charge Basis. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | In the sixth Contract Year, the Contract Value is $11,000. Although the maximum available under the partial withdrawal privilege is $12,000, there is only $11,000 of Contract Value available. Assuming you withdraw the $11,000, the partial withdrawal privilege does not apply because this is a full withdrawal. At this time, there are no Purchase Payments that are beyond the withdrawal charge period. Because this is a full withdrawal, we assess the withdrawal charge against the entire Withdrawal Charge Basis. The withdrawal charge in the sixth Contract Year is 2%. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| We calculate the withdrawal charge for the full withdrawal as follows: |                                                                                                                                                                                                                                                     |
|------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                   | The Withdrawal Charge Basis is equal to total Purchase Payments less any Purchase Payments                                                                                                                                                               |   |
|                                                                   | withdrawn (excluding any penalty-free withdrawals) = $100,000 – $0 = ……………….……….....................                                                                                         | $100,000 |
|                                                                   | Multiplied by the withdrawal charge………………………………………………………………………………... | x  2% |
|                                                                   |                                                                                                                                                                                                                                                     | $2,000 |

----

|   | 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                      |

| REGULAR MAIL                                    |
|-------------------------------------------------|
| Allianz Life Insurance Company of North America |
| NW5989                                          |
| P.O. Box 1450                                   |
| Minneapolis, MN 55485-5989                      |
|                                            |
| OVERNIGHT, CERTIFIED, OR REGISTERED MAIL        |
| Allianz Life Insurance Company of North America |
| NW5989                                          |
| 1801 Parkview Drive                             |
| Shoreview, MN 55126                             |

----

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

| Allianz Life……………………………………………………...........                   | 2 | Annuity Provisions……………………………………………......... | 6      |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---|----------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Experts………………………………………………………….…....…  | 2 | Annuity Units/Calculating Annuity Payments…………….….                                                             | 7      |
| Legal Opinions……………………………………………………….                    | 2 | Mortality and Expense Risk Guarantee………………………..….                                      | 7      |
| Distributor……………………………………………………….………. | 2 | Information on May 2003 Contracts………………………..……..                                 | 7      |
| Reduction or Elimination of the Withdrawal Charge………………..                                                                                         | 3 | Information on Contracts That Were Offered                                                                                                         |   |
| Federal Tax Status…………………………………………..….…..                                 | 3 | Before April 29, 2005………………………..………..………...              | 16     |
| General…………………………………………………………...…           | 3 | Information on Original Contracts………………………….…..….                          | 17     |
| Diversification…………………………………………….…......….                          | 4 | Financial Statements…………………………………..…..……….   | 18     |
| Owner Control………………………………………………..….                                 | 5 | Appendix – Condensed Financial Information…...……..………..                                                  | 19     |
| Contracts Owned by Non-Individuals……………………..…..                                                                                 | 5 |                                                                                                                                               |   |
| Income Tax Withholding………………………………..….......                                                            | 5 |                                                                                                                                               |   |
| Required Distributions…………………………………..………                                              | 5 |                                                                                                                                               |   |
| Qualified Contracts……………………………………………...                                         | 6 |                                                                                                                                               |   |

----

| Calendar Year | Aggregate Amount of Commissions Paid toAllianz Life Financial | Aggregate Amount of Commissions Retained by Allianz Life Financial After Payments to Selling Firms |
|---------------|---------------------------------------------------------------|----------------------------------------------------------------------------------------------------|
| 2010          | $220,761,073.60                                               | $0                                                                                                 |
| 2011          | $264,909,554.57                                               | $0                                                                                                 |
| 2012          | $256,459,224.79                                               | $0                                                                                                 |

----

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

| · | the size of the group; |
|--------|------------------------|

| · | the total amount of Purchase Payments expected to be received from the group; |
|--------|-------------------------------------------------------------------------------|

| · | the nature of the group for which the Contracts are purchased, and the persistency expected in that group (for example, the expectation that the Owners continue to hold the Contracts for a certain period of time); |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | the purpose for which the Contracts are purchased and whether that purpose makes it likely that expenses are reduced; and |
|--------|---------------------------------------------------------------------------------------------------------------------------|

| · | any other circumstances which we believe to be relevant to determining whether reduced sales or administrative expenses may be expected. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------|

----

| · | no more than 55% of the value of the total assets of the Investment Option is represented by any one investment; |
|--------|------------------------------------------------------------------------------------------------------------------|

| · | no more than 70% of the value of the total assets of the Investment Option is represented by any two investments; |
|--------|-------------------------------------------------------------------------------------------------------------------|

| · | no more than 80% of the value of the total assets of the Investment Option is represented by any three investments; and |
|--------|-------------------------------------------------------------------------------------------------------------------------|

| · | no more than 90% of the value of the total assets of the Investment Option is represented by any four investments. |
|--------|--------------------------------------------------------------------------------------------------------------------|

----

| · | 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 |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| · | the portion of the distributions not included in gross income (for example, returns of after-tax contributions); or |
|--------|---------------------------------------------------------------------------------------------------------------------|

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

| · | if any Owner dies on or after the Income Date, but before the time the entire interest in the Contract has been distributed, the entire interest in the Contract is distributed at least as rapidly as under the method of distribution being used as of the date of such Owner’s death; and |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | if any Owner dies before the Income Date, the entire interest in the Contract is distributed within five years after the date of such Owner’s death. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| · | Whether you request fixed payments, variable payments, or a combination of both fixed and variable Traditional Annuity Payments. |
|--------|----------------------------------------------------------------------------------------------------------------------------------|

| · | The adjusted Contract Value on the Income Date. |
|--------|-------------------------------------------------|

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

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

| · | The sex of the Annuitant and any joint Annuitant where allowed. |
|--------|-----------------------------------------------------------------|

----

| · | multiply the Annuity Unit value for the immediately preceding Business Day by the net investment factor for the current Business Day; and |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------|

| · | divide by the assumed net investment factor for the current Business Day. |
|--------|---------------------------------------------------------------------------|

| AIA  | = | Annual Increase Amount            |   | GPWB  | = | Guaranteed Partial Withdrawal Benefit |
|------|---|-----------------------------------|--------|-------|---|---------------------------------------|
| GMDB | = | Guaranteed Minimum Death Benefit  |   | MAV   | = | Maximum Anniversary Value             |
| GMIB | = | Guaranteed Minimum Income Benefit |   | PRIME | = | Protected Retirement Income Made Easy |

----

| · | Take an Excess Withdrawal of the entire Contract Value, less any withdrawal charge and any deduction we make to reimburse ourselves for premium tax (available at anytime). |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Request Traditional Annuity Payments under a Full Annuitization based on the entire Contract Value, less any deduction we make to reimburse ourselves for premium tax (available at anytime). |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Request GMIB Payments under a Full Annuitization based on the entire remaining PB Value (only available within 30 days following a Contract Anniversary and before we make the next GPWB Payment). |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | GPWB ends, |
|--------|------------|

| · | the Accumulation Phase of the Contract ends, |
|--------|----------------------------------------------|

| · | GMDB ends, and |
|--------|----------------|

| · | if you request Annuity Payments, that portion of the Contract ends, as indicated in prospectus section 3, The Annuity Phase. |
|--------|------------------------------------------------------------------------------------------------------------------------------|

----

| · | total Purchase Payments received, |
|--------|-----------------------------------|

| · | reduced proportionately by the percentage of Contract Value applied to a traditional Partial Annuitization or withdrawn (including any withdrawal charge) for each traditional annuitization or withdrawal taken, and |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | if you take a GMIB Partial Annuitization, reduced by the dollar amount applied to the GMIB Payments. |
|--------|------------------------------------------------------------------------------------------------------|

| · | on a dollar for dollar basis with each GPWB Payment we make; and |
|--------|------------------------------------------------------------------|

| · | proportionately by the percentage of any Contract Value taken as an Excess Withdrawal (including any withdrawal charge) for each Excess Withdrawal taken. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | the AIA; or |
|--------|-------------|

| · | the MAV. |
|--------|----------|

| · | the 7% AIA is subject to a maximum of two times Purchase Payments received in the first five Contract Years; |
|--------|--------------------------------------------------------------------------------------------------------------|

| · | under GMIB, the guaranteed fixed payout rates for the 7% AIA are lower and there are fewer available Annuity Options; and |
|--------|---------------------------------------------------------------------------------------------------------------------------|

| · | its value on the immediately preceding Business Day, |
|--------|------------------------------------------------------|

| · | plus any additional Purchase Payments received that day, |
|--------|----------------------------------------------------------|

| · | reduced proportionately by the percentage of Contract Value applied to a traditional Partial Annuitization or withdrawn that day (including any withdrawal charge), and |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | if you take a GMIB Partial Annuitization that day based on the: |
|--------|-----------------------------------------------------------------|

|   | – | 3% AIA, we reduce the 3% AIA by the dollar amount applied to GMIB Payments and we reduce the 7% AIA proportionately by the percentage of the 3% AIA applied to GMIB Payments. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | – | 7% AIA, we reduce the 7% AIA by the dollar amount applied to GMIB Payments and we reduce the 3% AIA proportionately by the percentage of the 7% AIA applied to GMIB Payments. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | – | MAV, we reduce both the 3% AIA and 7% AIA proportionately by the percentage of the MAV applied to GMIB Payments. |
|--------|---------|------------------------------------------------------------------------------------------------------------------|

----

| * | If the Contract is owned by a non-individual (for example, a qualified plan or trust), we use the Annuitant’s age. |
|---|--------------------------------------------------------------------------------------------------------------------------|

| · | 1.5 times total Purchase Payments received, |
|--------|---------------------------------------------|

| · | reduced proportionately by the percentage of Contract Value applied to each traditional Partial Annuitization or withdrawal (including any withdrawal charge) for each traditional annuitization or withdrawal taken, and |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | reduced proportionately by the percentage of GMIB value applied to each GMIB Partial Annuitization. |
|--------|-----------------------------------------------------------------------------------------------------|

| · | 2 times the total Purchase Payments received in the first five Contract Years, |
|--------|--------------------------------------------------------------------------------|

| · | reduced proportionately by the percentage of Contract Value applied to each traditional Partial Annuitization or withdrawal (including any withdrawal charge) for each traditional annuitization or withdrawal taken, and |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | reduced proportionately by the percentage of GMIB value applied to each GMIB Partial Annuitization. |
|--------|-----------------------------------------------------------------------------------------------------|

| · | its value on the immediately preceding Business Day, |
|--------|------------------------------------------------------|

| · | plus any additional Purchase Payments received that day, |
|--------|----------------------------------------------------------|

| · | reduced proportionately by the percentage of Contract Value applied to a traditional Partial Annuitization or withdrawn that day (including any withdrawal charge), and |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | if you take a GMIB Partial Annuitization that day based on the: |
|--------|-----------------------------------------------------------------|

|   | – | MAV, we reduce the MAV by the dollar amount applied to GMIB Payments, and |
|--------|---------|---------------------------------------------------------------------------|

|   | – | 3% AIA or 7% AIA, we reduce the MAV proportionately by the percentage of the 3% AIA or 7% AIA applied to GMIB Payments. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------|

| * | If the Contract is owned by a non-individual (for example, a qualified plan or trust), we use the Annuitant’s age. |
|---|--------------------------------------------------------------------------------------------------------------------------|

| · | on a dollar for dollar basis with each GPWB Payment we make; and |
|--------|------------------------------------------------------------------|

| · | proportionately by the percentage of any Contract Value taken as an Excess Withdrawal (including any withdrawal charge) for each withdrawal taken. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------|

----

| · | You can no longer make additional Purchase Payments to the Contract. |
|--------|----------------------------------------------------------------------|

| · | Partial Annuitizations are no longer available. |
|--------|-------------------------------------------------|

| · | The additional M&E charge for the PRIME Benefit continues until both GPWB and GMIB end. |
|--------|---------------------------------------------------------------------------------------------|

| · | If you have Enhanced GMDB or Earnings Protection GMDB, the additional M&E charge for GMDB continues as long as the Enhanced GMDB value or Earnings Protection GMDB value is greater than zero. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The partial withdrawal privilege is no longer available to you, however, you can still take GPWB Payments and Excess Withdrawals up to the annual GPWB Maximum without a withdrawal charge. Excess Withdrawals (including a full withdrawal of the Contract Value) are available while you are receiving GPWB Payments, however, amounts withdrawn in excess of the annual GPWB Maximum (including GPWB Payments) are subject to a withdrawal charge, as set out in prospectus section 7, Expenses – Withdrawal Charge. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The systematic withdrawal and minimum distribution programs are no longer available to you and if you are participating in these programs, your participation ends. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The Contract Value continues to fluctuate as a result of market performance, and decreases on a dollar for dollar basis with each GPWB Payment and any Excess Withdrawals. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The GMDB value no longer increases, each GPWB Payment reduces the GMDB value on a dollar for dollar basis and any Excess Withdrawals reduce the GMDB value proportionately by the percentage of Contract Value withdrawn. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The PB Value no longer increases, each GPWB Payment reduces the PB Value on a dollar for dollar basis and any Excess Withdrawals reduce the PB Value proportionately by the percentage of Contract Value withdrawn. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Excess Withdrawals do not affect the GPWB Payment amount or frequency, but may decrease the time over which you receive GPWB Payments. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------|

| · | The Accumulation Phase ends and the Annuity Phase begins. |
|--------|-----------------------------------------------------------|

| · | The portion of the Contract that you apply to GMIB is no longer subject to the Separate Account annual expense, but any portion of the Contract applied to variable Traditional Annuity Payments continues to be subject to a 1.50% Separate Account annual expense. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | If you have not exercised GPWB, it is no longer available to you, and you are no longer able to make additional Purchase Payments to the Contract. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------|

| · | If you exercised GPWB, GPWB Payments stop and GPWB ends. |
|--------|----------------------------------------------------------|

| · | GMDB ends. |
|--------|------------|

----

| · | The Annuity Phase begins and the Accumulation Phase continues. |
|--------|----------------------------------------------------------------|

| · | The portion of the Contract that you apply to GMIB is no longer subject to the Separate Account annual expense, but any portion of the Contract in the Accumulation Phase or that has been applied to variable Traditional Annuity Payments continues to be subject to the appropriate Separate Account annual expense. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | If any portion of the Contract is in the Accumulation Phase, you may be able to make additional Purchase Payments to the Contract, but you cannot make additional Purchase Payments to any portion of the Contract in the Annuity Phase. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | GPWB continues to be available to you. |
|--------|----------------------------------------|

| · | The Partial Annuitization reduces the Contract Value and GMDB value proportionately by the percentage of PB Value you apply to GMIB. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------|

| · | GMIB Payments do not affect the Contract Value available under the portion of the Contract in the Accumulation Phase. |
|--------|-----------------------------------------------------------------------------------------------------------------------|

| * | Not available after you exercise GPWB, or if the PB Value is less than the Contract Value. |
|---|--------------------------------------------------------------------------------------------|

| · | when to exercise a benefit, |
|--------|-----------------------------|

| · | which benefit(s) to exercise, and |
|--------|-----------------------------------|

| · | the amount of the GPWB Payment (subject to the GPWB Maximum) and Excess Withdrawals from the portion of the Contract that is in the Accumulation Phase. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | 10% of the PB Value under Traditional PRIME Benefit, |
|--------|------------------------------------------------------|

| · | 10% of the PB Value under Enhanced PRIME Benefit, if the 3% AIA or MAV applies, or |
|--------|------------------------------------------------------------------------------------|

| · | 5% of the PB Value under Enhanced PRIME Benefit, if the 7% AIA applies. |
|--------|-------------------------------------------------------------------------|

| · | the Contract Value, |
|--------|---------------------|

| · | the PB Value (which determines the amount available for future GPWB Payments and/or future GMIB Payments), and |
|--------|----------------------------------------------------------------------------------------------------------------|

| · | the GMDB value. |
|--------|-----------------|

| · | within ten years, under Traditional PRIME Benefit if you take the maximum allowable payment each year. |
|--------|--------------------------------------------------------------------------------------------------------|

| · | within ten years, if you elect the 10% payment option under Enhanced PRIME Benefit and take the maximum allowable payment each year. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------|

| · | within 20 years, if you elect the 5% payment option under Enhanced PRIME Benefit and take the maximum allowable payment each year (assuming no step ups). |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| · | receive a lump sum payment of the entire remaining Contract Value (less any withdrawal charges and any deduction we make for premium taxes), the Accumulation Phase and the Contract ends; or |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | request Traditional Annuity Payments under a Full Annuitization based on the entire remaining Contract Value (less any deduction we make for premium taxes). |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| * | If you took a Partial Annuitization, those portions of the Contract continue and we continue to make Annuity Payments as provided for in the selected Annuity Option. |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The Business Day you take an Excess Withdrawal of the entire Contract Value. |
|--------|------------------------------------------------------------------------------|

| · | The Business Day that the PB Value and Contract Value are both zero. |
|--------|----------------------------------------------------------------------|

| · | The Business Day before the Income Date that you take a Full Annuitization. |
|--------|-----------------------------------------------------------------------------|

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

| · | The death of any Owner (unless the deceased Owner’s spouse continues the Contract as the new Owner). |
|--------|------------------------------------------------------------------------------------------------------------|

| · | Your Income Date must be within 30 days following a Contract Anniversary, beginning with seventh Contract Anniversary. |
|--------|------------------------------------------------------------------------------------------------------------------------|

| · | GMIB Payments can only be made as fixed payments, regardless of the Annuity Option* you select. |
|--------|-------------------------------------------------------------------------------------------------|

| · | Annuity Option 6* is only available if the PB Value is the MAV and the duration of the period certain must be at least ten years. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------|

| · | If the PB Value is the 7% AIA, your available Annuity Options* are restricted to Annuity Option 2 or 4 and the duration of the period certain must be at least ten years. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | We base all GMIB Payments on an interest rate of 1% per year if the PB Value is the MAV and you select Annuity Option 6, or if the PB value is the 7% AIA. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| * | For more information, see prospectus section 3, The Annuity Phase – Annuity Options. |
|---|--------------------------------------------------------------------------------------------|

----

| · | transfer any amounts you allocated to GMIB Payments back to any portion of the Contract in the Accumulation Phase; |
|--------|--------------------------------------------------------------------------------------------------------------------|

| · | transfer amounts from one Annuity Payment stream to another; or |
|--------|-----------------------------------------------------------------|

| · | allocate additional PB Value (or Contract Value) to an existing stream of Annuity Payments. |
|--------|---------------------------------------------------------------------------------------------|

----

| · | The Business Day that the PB Value and Contract Value are both zero. |
|--------|----------------------------------------------------------------------|

| · | The Business Day before the Income Date you take a Full Annuitization and request Traditional Annuity Payments. |
|--------|-----------------------------------------------------------------------------------------------------------------|

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

| · | The death of any Owner (unless the deceased Owner’s spouse continues the Contract as the new Owner). |
|--------|------------------------------------------------------------------------------------------------------------|

| · | 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. |
|--------|----------------------------------------------------------------------------------------|

| · | Under Annuity Option 6, the expiration of the specified period certain. |
|--------|-------------------------------------------------------------------------|

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

| * | If we make a lump sum payment of the remaining guaranteed GMIB Payments at the death of the last surviving Annuitant, this portion of the Contract ends upon payment of the lump sum. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                     | May 2003 Contracts with Traditional PRIME Benefit |
|--------------------------|---------------------------------------------------|
|                     | M&E Charges                                   | Admin.Charge | Total |
| Traditional GMDB         | 1.55%                                             | 0.15% | 1.70% |
| Enhanced GMDB            | 1.80%                                             | 0.15% | 1.95% |
| Earnings Protection GMDB | 1.85%                                             | 0.15% | 2.00% |

| (1) | Some or all of the guaranteed benefits may not be available in all states; check with your Financial Professional. |
|-----|--------------------------------------------------------------------------------------------------------------------|

----

----

| Number of Complete Years Since Income Date | Charge |
|--------------------------------------------|--------|
| 0                                          | 5%     |
| 1                                          | 4%     |
| 2                                          | 3%     |
| 3                                          | 2%     |
| 4 years or more                            | 1%     |

| Number of Complete Contract Years Since Receipt of Purchase Payment | Charge |
|---------------------------------------------------------------------|--------|
| 0                                                                   | 7%     |
| 1                                                                   | 6%     |
| 2                                                                   | 5%     |
| 3                                                                   | 4%     |
| 4                                                                   | 3%     |
| 5                                                                   | 2%     |
| 6 Contract years or more                                            | 0%     |

| · | the Maximum Anniversary Value (MAV) before the older Owner’s 81st birthday, adjusted for subsequent partial withdrawals and subsequent Purchase Payments; or |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | the Annual Increase Amount (AIA) before the older Owner’s 81st birthday, adjusted for subsequent partial withdrawals and subsequent Purchase Payments. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| · | If all Owners were age 69 or younger on the Issue Date, 40% of the lesser of (a) or (b), or |
|--------|---------------------------------------------------------------------------------------------|

| · | If the older Owner was age 70 or older on the Issue Date, 25% of the lesser of (a) or (b), where: |
|--------|---------------------------------------------------------------------------------------------------|

| (a) | is the Contract Value determined as of the end of the Business Day during which both due proof of death and an election of the death benefit payment option have been received at our Service Center; and |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | is the total Purchase Payments. |
|-----|---------------------------------|

| Separate Account Annual Expenses During the Accumulation Phase(as a percentage of average daily assets invested in a subaccount on an annual basis) |
|-----------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                | Charges for Original Contracts withTraditional GMIB |   | Charges for Original Contracts withEnhanced GMIB |
|                                                                                                                                                | M&E Charges | Admin. Charge | Total |   | M&E Charges | Admin. Charge | Total |
| Traditional GMDB                                                                                                                                    | 1.25% | 0.15% | 1.40% |   | 1.55% | 0.15% | 1.70% |
| Enhanced GMDB                                                                                                                                       | 1.55% | 0.15% | 1.70% |   | 1.75% | 0.15% | 1.90% |
| Earnings Protection GMDB                                                                                                                            | 1.45% | 0.15% | 1.60% |   | 1.75% | 0.15% | 1.90% |

| Withdrawal Charge – during the Accumulation Phase*(as a percentage of each Purchase Payment withdrawn) |   | Withdrawal Charge – during the Annuity Phase**(as a percentage of amount liquidated under Annuity Option 6) |
|--------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------|
|                                                                                                         |   |                                                                                                              |   |   |
| Number of Complete Contract Years Since Receipt of Purchase Payment                                          | Charge |                                                                                                              | Number of Complete Contract Years Since Receipt of Purchase Payment | Charge |
| 0                                                                                                            | 7%     |                                                                                                              | 0 | 7% |
| 1                                                                                                            | 6%     |                                                                                                              | 1 | 6% |
| 2                                                                                                            | 5%     |                                                                                                              | 2 | 5% |
| 3                                                                                                            | 4%     |                                                                                                              | 3 | 4% |
| 4                                                                                                            | 3%     |                                                                                                              | 4 | 3% |
| 5 years or more                                                                                              | 0%     |                                                                                                              | 5 years or more | 0% |

| * | Each year, on a cumulative basis (less any withdrawals taken in the current Contract Year that were not subject to a withdrawal charge), you may take partial withdrawals that when added together do not exceed 10% of total Purchase Payments and we do not assess a withdrawal charge. For more details and additional information on other penalty-free withdrawal options please see the discussion of the partial withdrawal privilege and other information that appears in the prospectus section 9, Access to Your Money. |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ** | May not be applicable in all states. |
|----|--------------------------------------|

----

| Key to Benefit Option* | Separate Account Annual Expenses(1)                                                                                                                           |
|------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ALE 1                  | Allianz Alterity – Original Contract with Enhanced GMDB and Enhanced GMIB                                                                               | 1.90% |
| ALE 3                  | Allianz Alterity – May 2006 Base and May 2003 Contract with Enhanced GMDB                                                                               | 1.80% |
| ALE 4                  | Allianz Alterity – May 2003 Contract with Enhanced GMDB and Traditional PRIME Benefit                                                                   | 1.95% |
| ALE 5                  | Allianz Alterity – May 2003 Contract with Enhanced GMDB and Enhanced PRIME Benefit                                                                      | 2.40% |
| ALO 1                  | Allianz Alterity – Original Contract with Traditional GMDB and Enhanced GMIB andOriginal Contract with Enhanced GMDB and Traditional GMIB               | 1.70% |
| ALO 2                  | Allianz Alterity – Original Contract with Earnings Protection GMDB and Enhanced GMIB                                                                    | 1.90% |
| ALO 3                  | Allianz Alterity – May 2006 Base and May 2003 Contract with Earnings Protection GMDB                                                                    | 1.80% |
| ALO 4                  | Allianz Alterity – May 2003 Contract with Earnings Protection GMDB andTraditional PRIME Benefit                                                         | 2.00% |
| ALT 1                  | Allianz Alterity – Original Contract with Traditional GMDB and Traditional GMIB                                                                         | 1.40% |
| ALT 2                  | Allianz Alterity – Original Contract with Earnings Protection GMDB and Traditional GMIB                                                                 | 1.60% |
| ALT 4                  | Allianz Alterity – May 2003 Contract with Traditional GMDB and Traditional PRIME Benefit                                                                | 1.70% |
| ALT 5                  | Allianz Alterity – May 2003 Contract with Traditional GMDB and Enhanced PRIME Benefit andMay 2006 Contract with Traditional GMDB and PRIME Plus Benefit | 2.20% |

| (1) | The Separate Account annual expenses for a May 2003 Contract with Traditional GMDB and No PRIME Benefit (1.50%) and a May 2003 Contract with Earnings Protection GMDB and Enhanced PRIME Benefit (2.45%) are the same as the expenses for May 2006 Contracts, therefore the AUV information is included in the prospectus. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Benefit Option *  | Period or Year Ended | AUV at Beginning of Period | AUV at End of Period | Number of Accumulation Units Outstanding at End of Period |
|-------------------|----------------------|----------------------------|----------------------|-----------------------------------------------------------|
| Investment Option |

| AZL Balanced Index Strategy Fund |
|----------------------------------|
| ALE 1  1.90%           |   |   |   |   |
|                             | 12/31/2009 | N/A | 10.025 | 54 |
|                             | 12/31/2010 | 10.025 | 10.869 | 76 |
|                             | 12/31/2011 | 10.869 | 10.922 | 70 |
|                             | 12/31/2012 | 10.922 | 11.818 | 178 |
| ALE 3  1.80%           |   |   |   |   |
|                             | 12/31/2009 | N/A | 10.027 | 0 |
|                             | 12/31/2010 | 10.027 | 10.882 | 19 |
|                             | 12/31/2011 | 10.882 | 10.946 | 21 |
|                             | 12/31/2012 | 10.946 | 11.856 | 22 |
| ALE 4  1.95%           |   |   |   |   |
|                             | 12/31/2009 | N/A | 10.024 | 0 |
|                             | 12/31/2010 | 10.024 | 10.863 | 0 |
|                             | 12/31/2011 | 10.863 | 10.910 | 9 |
|                             | 12/31/2012 | 10.910 | 11.799 | 8 |
| ALE 5  2.40%           |
|                             | 12/31/2009 | N/A | 10.015 | 55 |
|                             | 12/31/2010 | 10.015 | 10.804 | 197 |
|                             | 12/31/2011 | 10.804 | 10.803 | 109 |
|                             | 12/31/2012 | 10.803 | 11.631 | 152 |
| ALO 1  1.70%           |   |   |   |   |
|                             | 12/31/2009 | N/A | 10.029 | 14 |
|                             | 12/31/2010 | 10.029 | 10.895 | 19 |
|                             | 12/31/2011 | 10.895 | 10.970 | 26 |
|                             | 12/31/2012 | 10.970 | 11.894 | 52 |
| ALO 2  1.90%           |   |   |   |   |
|                             | 12/31/2009 | N/A | 10.025 | 0 |
|                             | 12/31/2010 | 10.025 | 10.869 | 12 |
|                             | 12/31/2011 | 10.869 | 10.922 | 5 |
|                             | 12/31/2012 | 10.922 | 11.818 | 5 |
| ALO 3  1.80%           |
|                             | 12/31/2009 | N/A | 10.027 | 0 |
|                             | 12/31/2010 | 10.027 | 10.882 | 0 |
|                             | 12/31/2011 | 10.882 | 10.946 | 0 |
|                             | 12/31/2012 | 10.946 | 11.856 | 0 |

----

| Benefit Option *                                   | Period or Year Ended | AUV at Beginning of Period | AUV at End of Period | Number of Accumulation Units Outstanding at End of Period |
|----------------------------------------------------|----------------------|----------------------------|----------------------|-----------------------------------------------------------|
| Investment Option                                  |
| ALO 4  2.00%                             |                 |                       |                 |                                                      |   |
|                                               | 12/31/2009           | N/A                        | 10.023               | 0                                                         |   |
|                                               | 12/31/2010           | 10.023                     | 10.856               | 0                                                         |   |
|                                               | 12/31/2011           | 10.856                     | 10.898               | 0                                                         |   |
|                                               | 12/31/2012           | 10.898                     | 11.780               | 0                                                         |   |
| ALT 1  1.40%                             |                 |                       |                 |                                                      |   |
|                                               | 12/31/2009           | N/A                        | 10.035               | 0                                                         |   |
|                                               | 12/31/2010           | 10.035                     | 10.934               | 0                                                         |   |
|                                               | 12/31/2011           | 10.934                     | 11.042               | 0                                                         |   |
|                                               | 12/31/2012           | 11.042                     | 12.008               | 0                                                         |   |
| ALT 2  1.60%                             |                 |                       |                 |                                                      |   |
|                                               | 12/31/2009           | N/A                        | 10.031               | 0                                                         |   |
|                                               | 12/31/2010           | 10.031                     | 10.908               | 0                                                         |   |
|                                               | 12/31/2011           | 10.908                     | 10.994               | 0                                                         |   |
|                                               | 12/31/2012           | 10.994                     | 11.932               | 0                                                         |   |
| ALT 4  1.70%                             |                 |                       |                 |                                                      |   |
|                                               | 12/31/2009           | N/A                        | 10.029               | 0                                                         |   |
|                                               | 12/31/2010           | 10.029                     | 10.895               | 5                                                         |   |
|                                               | 12/31/2011           | 10.895                     | 10.970               | 1                                                         |   |
|                                               | 12/31/2012           | 10.970                     | 11.894               | 3                                                         |   |
| ALT 5  2.20%                             |                 |                       |                 |                                                      |   |
|                                               | 12/31/2009           | N/A                        | 10.019               | 182                                                       |   |
|                                               | 12/31/2010           | 10.019                     | 10.830               | 246                                                       |   |
|                                               | 12/31/2011           | 10.830                     | 10.850               | 300                                                       |   |
|                                               | 12/31/2012           | 10.850                     | 11.705               | 329                                                       |   |
| AZL Franklin Templeton Founding Strategy Plus Fund |                 |
| ALE 1  1.90%                             |                 |                       |                 |                                                      |   |
|                                               | 12/31/2009           | N/A                        | 10.208               | 5                                                         |   |
|                                               | 12/31/2010           | 10.208                     | 11.020               | 17                                                        |   |
|                                               | 12/31/2011           | 11.020                     | 10.614               | 237                                                       |   |
|                                               | 12/31/2012           | 10.614                     | 11.953               | 231                                                       |   |
| ALE 3  1.80%                             |                 |                       |                 |                                                      |   |
|                                               | 12/31/2009           | N/A                        | 10.210               | 1                                                         |   |
|                                               | 12/31/2010           | 10.210                     | 11.033               | 5                                                         |   |
|                                               | 12/31/2011           | 11.033                     | 10.638               | 11                                                        |   |
|                                               | 12/31/2012           | 10.638                     | 11.991               | 9                                                         |   |
| ALE 4  1.95%                             |                 |                       |                 |                                                      |   |
|                                               | 12/31/2009           | N/A                        | 10.207               | 0                                                         |   |
|                                               | 12/31/2010           | 10.207                     | 11.013               | 0                                                         |   |
|                                               | 12/31/2011           | 11.013                     | 10.603               | 0                                                         |   |
|                                               | 12/31/2012           | 10.603                     | 11.934               | 3                                                         |   |
| ALE 5  2.40%                             |                 |                       |                 |                                                      |   |
|                                               | 12/31/2009           | N/A                        | 10.198               | 8                                                         |   |
|                                               | 12/31/2010           | 10.198                     | 10.954               | 70                                                        |   |
|                                               | 12/31/2011           | 10.954                     | 10.499               | 249                                                       |   |
|                                               | 12/31/2012           | 10.499                     | 11.763               | 297                                                       |   |
| ALO 1  1.70%                             |                 |                       |                 |                                                      |   |
|                                               | 12/31/2009           | N/A                        | 10.212               | 4                                                         |   |
|                                               | 12/31/2010           | 10.212                     | 11.046               | 18                                                        |   |
|                                               | 12/31/2011           | 11.046                     | 10.661               | 92                                                        |   |
|                                               | 12/31/2012           | 10.661                     | 12.029               | 201                                                       |   |
| ALO 2  1.90%                             |                 |                       |                 |                                                      |
|                                               | 12/31/2009           | N/A                        | 10.208               | 0                                                         |   |
|                                               | 12/31/2010           | 10.208                     | 11.020               | 0                                                         |   |
|                                               | 12/31/2011           | 11.020                     | 10.614               | 18                                                        |   |
|                                               | 12/31/2012           | 10.614                     | 11.953               | 16                                                        |   |
| ALO 3  1.80%                             |                 |                       |                 |                                                      |   |
|                                               | 12/31/2009           | N/A                        | 10.210               | 0                                                         |   |
|                                               | 12/31/2010           | 10.210                     | 11.033               | 0                                                         |   |
|                                               | 12/31/2011           | 11.033                     | 10.638               | 0                                                         |   |
|                                               | 12/31/2012           | 10.638                     | 11.991               | 0                                                         |   |
| ALO 4  2.00%                             |                 |                       |                 |                                                      |   |
|                                               | 12/31/2009           | N/A                        | 10.206               | 0                                                         |   |
|                                               | 12/31/2010           | 10.206                     | 11.006               | 0                                                         |   |
|                                               | 12/31/2011           | 11.006                     | 10.591               | 0                                                         |   |
|                                               | 12/31/2012           | 10.591                     | 11.915               | 0                                                         |   |
| ALT 1  1.40%                             |                 |                       |                 |                                                      |   |
|                                               | 12/31/2009           | N/A                        | 10.218               | 0                                                         |   |
|                                               | 12/31/2010           | 10.218                     | 11.085               | 0                                                         |   |
|                                               | 12/31/2011           | 11.085                     | 10.731               | 7                                                         |   |
|                                               | 12/31/2012           | 10.731                     | 12.145               | 7                                                         |   |
| ALT 2  1.60%                             |                 |                       |                 |                                                      |   |
|                                               | 12/31/2009           | N/A                        | 10.214               | 0                                                         |   |
|                                               | 12/31/2010           | 10.214                     | 11.059               | 0                                                         |   |
|                                               | 12/31/2011           | 11.059                     | 10.684               | 0                                                         |   |
|                                               | 12/31/2012           | 10.684                     | 12.068               | 0                                                         |   |
| ALT 4  1.70%                             |                 |                       |                 |                                                      |   |
|                                               | 12/31/2009           | N/A                        | 10.212               | 0                                                         |   |
|                                               | 12/31/2010           | 10.212                     | 11.046               | 0                                                         |   |
|                                               | 12/31/2011           | 11.046                     | 10.661               | 6                                                         |   |
|                                               | 12/31/2012           | 10.661                     | 12.029               | 4                                                         |   |
| ALT 5  2.20%                             |                 |                       |                 |                                                      |   |
|                                               | 12/31/2009           | N/A                        | 10.202               | 15                                                        |   |
|                                               | 12/31/2010           | 10.202                     | 10.980               | 67                                                        |   |
|                                               | 12/31/2011           | 10.980                     | 10.545               | 290                                                       |   |
|                                               | 12/31/2012           | 10.545                     | 11.839               | 435                                                       |   |
| AZL Gateway Fund                                   |                 |
| ALE 1  1.90%                             |                 |                       |                 |                                                      |   |
|                                               | 12/31/2010           | N/A                        | 10.068               | 4                                                         |   |
|                                               | 12/31/2011           | 10.068                     | 10.182               | 31                                                        |   |
|                                               | 12/31/2012           | 10.182                     | 10.404               | 73                                                        |   |
| ALE 3  1.80%                             |                 |                       |                 |                                                      |   |
|                                               | 12/31/2010           | N/A                        | 10.075               | 1                                                         |   |
|                                               | 12/31/2011           | 10.075                     | 10.199               | 5                                                         |   |
|                                               | 12/31/2012           | 10.199                     | 10.431               | 5                                                         |   |
| ALE 4  1.95%                             |                 |                       |                 |                                                      |   |
|                                               | 12/31/2010           | N/A                        | 10.065               | 0                                                         |   |
|                                               | 12/31/2011           | 10.065                     | 10.173               | 1                                                         |   |
|                                               | 12/31/2012           | 10.173                     | 10.390               | 4                                                         |   |
| ALE 5  2.40%                             |                 |                       |                 |                                                      |   |
|                                               | 12/31/2010           | N/A                        | 10.034               | 28                                                        |   |
|                                               | 12/31/2011           | 10.034                     | 10.097               | 163                                                       |   |
|                                               | 12/31/2012           | 10.097                     | 10.265               | 196                                                       |   |
| ALO 1  1.70%                             |                 |                       |                 |                                                      |   |
|                                               | 12/31/2010           | N/A                        | 10.082               | 1                                                         |   |
|                                               | 12/31/2011           | 10.082                     | 10.216               | 28                                                        |   |
|                                               | 12/31/2012           | 10.216                     | 10.459               | 24                                                        |   |

----

| Benefit Option *                   | Period or Year Ended | AUV at Beginning of Period | AUV at End of Period | Number of Accumulation Units Outstanding at End of Period |
|------------------------------------|----------------------|----------------------------|----------------------|-----------------------------------------------------------|
| Investment Option                  |
| ALO 2  1.90%             |                 |                       |                 |                                                      |
|                               | 12/31/2010           | N/A                        | 10.068               | 1                                                         |   |
|                               | 12/31/2011           | 10.068                     | 10.182               | 1                                                         |   |
|                               | 12/31/2012           | 10.182                     | 10.404               | 7                                                         |   |
| ALO 3  1.80%             |                 |                       |                 |                                                      |   |
|                               | 12/31/2010           | N/A                        | 10.075               | 0                                                         |   |
|                               | 12/31/2011           | 10.075                     | 10.199               | 0                                                         |   |
|                               | 12/31/2012           | 10.199                     | 10.431               | 11                                                        |   |
| ALO 4  2.00%             |                 |                       |                 |                                                      |   |
|                               | 12/31/2010           | N/A                        | 10.061               | 0                                                         |   |
|                               | 12/31/2011           | 10.061                     | 10.165               | 0                                                         |   |
|                               | 12/31/2012           | 10.165                     | 10.376               | 0                                                         |   |
| ALT 1  1.40%             |                 |                       |                 |                                                      |   |
|                               | 12/31/2010           | N/A                        | 10.102               | 0                                                         |   |
|                               | 12/31/2011           | 10.102                     | 10.267               | 10                                                        |   |
|                               | 12/31/2012           | 10.267                     | 10.544               | 0                                                         |   |
| ALT 2  1.60%             |                 |                       |                 |                                                      |   |
|                               | 12/31/2010           | N/A                        | 10.089               | 0                                                         |   |
|                               | 12/31/2011           | 10.089                     | 10.233               | 0                                                         |   |
|                               | 12/31/2012           | 10.233                     | 10.487               | 0                                                         |   |
| ALT 4  1.70%             |                 |                       |                 |                                                      |   |
|                               | 12/31/2010           | N/A                        | 10.082               | 3                                                         |   |
|                               | 12/31/2011           | 10.082                     | 10.216               | 6                                                         |   |
|                               | 12/31/2012           | 10.216                     | 10.459               | 5                                                         |   |
| ALT 5  2.20%             |                 |                       |                 |                                                      |   |
|                               | 12/31/2010           | N/A                        | 10.048               | 21                                                        |   |
|                               | 12/31/2011           | 10.048                     | 10.131               | 75                                                        |   |
|                               | 12/31/2012           | 10.131                     | 10.320               | 148                                                       |   |
| AZL Growth Index Strategy Fund     |                 |
| ALE 1  1.90%             |                 |                       |                 |                                                      |   |
|                               | 12/31/2009           | N/A                        | 10.057               | 127                                                       |   |
|                               | 12/31/2010           | 10.057                     | 11.192               | 150                                                       |   |
|                               | 12/31/2011           | 11.192                     | 10.983               | 283                                                       |   |
|                               | 12/31/2012           | 10.983                     | 12.211               | 392                                                       |   |
| ALE 3  1.80%             |                 |                       |                 |                                                      |   |
|                               | 12/31/2009           | N/A                        | 10.059               | 8                                                         |   |
|                               | 12/31/2010           | 10.059                     | 11.205               | 6                                                         |   |
|                               | 12/31/2011           | 11.205                     | 11.007               | 13                                                        |   |
|                               | 12/31/2012           | 11.007                     | 12.250               | 15                                                        |   |
| ALE 4  1.95%             |                 |                       |                 |                                                      |   |
|                               | 12/31/2009           | N/A                        | 10.056               | 0                                                         |   |
|                               | 12/31/2010           | 10.056                     | 11.185               | 0                                                         |   |
|                               | 12/31/2011           | 11.185                     | 10.971               | 5                                                         |   |
|                               | 12/31/2012           | 10.971                     | 12.192               | 5                                                         |   |
| ALE 5  2.40%             |                 |                       |                 |                                                      |   |
|                               | 12/31/2009           | N/A                        | 10.047               | 317                                                       |   |
|                               | 12/31/2010           | 10.047                     | 11.125               | 315                                                       |   |
|                               | 12/31/2011           | 11.125                     | 10.863               | 1025                                                      |   |
|                               | 12/31/2012           | 10.863                     | 12.018               | 1595                                                      |   |
| ALO 1  1.70%             |                 |                       |                 |                                                      |   |
|                               | 12/31/2009           | N/A                        | 10.061               | 43                                                        |   |
|                               | 12/31/2010           | 10.061                     | 11.219               | 29                                                        |   |
|                               | 12/31/2011           | 11.219                     | 11.031               | 241                                                       |   |
|                               | 12/31/2012           | 11.031                     | 12.289               | 283                                                       |   |
| ALO 2  1.90%             |                 |
|                               | 12/31/2009           | N/A                        | 10.057               | 4                                                         |   |
|                               | 12/31/2010           | 10.057                     | 11.192               | 12                                                        |   |
|                               | 12/31/2011           | 11.192                     | 10.983               | 22                                                        |   |
|                               | 12/31/2012           | 10.983                     | 12.211               | 23                                                        |   |
| ALO 3  1.80%             |                 |                       |                 |                                                      |   |
|                               | 12/31/2009           | N/A                        | 10.059               | 7                                                         |   |
|                               | 12/31/2010           | 10.059                     | 11.205               | 7                                                         |   |
|                               | 12/31/2011           | 11.205                     | 11.007               | 9                                                         |   |
|                               | 12/31/2012           | 11.007                     | 12.250               | 10                                                        |   |
| ALO 4  2.00%             |                 |                       |                 |                                                      |   |
|                               | 12/31/2009           | N/A                        | 10.055               | 0                                                         |   |
|                               | 12/31/2010           | 10.055                     | 11.179               | 0                                                         |   |
|                               | 12/31/2011           | 11.179                     | 10.959               | 10                                                        |   |
|                               | 12/31/2012           | 10.959                     | 12.172               | 0                                                         |   |
| ALT 1  1.40%             |                 |                       |                 |                                                      |   |
|                               | 12/31/2009           | N/A                        | 10.067               | 0                                                         |   |
|                               | 12/31/2010           | 10.067                     | 11.259               | 0                                                         |   |
|                               | 12/31/2011           | 11.259                     | 11.104               | 3                                                         |   |
|                               | 12/31/2012           | 11.104                     | 12.408               | 1                                                         |   |
| ALT 2  1.60%             |                 |                       |                 |                                                      |   |
|                               | 12/31/2009           | N/A                        | 10.063               | 0                                                         |   |
|                               | 12/31/2010           | 10.063                     | 11.232               | 0                                                         |   |
|                               | 12/31/2011           | 11.232                     | 11.055               | 0                                                         |   |
|                               | 12/31/2012           | 11.055                     | 12.329               | 0                                                         |   |
| ALT 4  1.70%             |                 |                       |                 |                                                      |   |
|                               | 12/31/2009           | N/A                        | 10.061               | 0                                                         |   |
|                               | 12/31/2010           | 10.061                     | 11.219               | 2                                                         |   |
|                               | 12/31/2011           | 11.219                     | 11.031               | 6                                                         |   |
|                               | 12/31/2012           | 11.031                     | 12.289               | 6                                                         |   |
| ALT 5  2.20%             |                 |                       |                 |                                                      |   |
|                               | 12/31/2009           | N/A                        | 10.051               | 520                                                       |   |
|                               | 12/31/2010           | 10.051                     | 11.152               | 487                                                       |   |
|                               | 12/31/2011           | 11.152                     | 10.911               | 1185                                                      |   |
|                               | 12/31/2012           | 10.911                     | 12.095               | 1384                                                      |   |
| AZL Invesco Equity and Income Fund |                 |
| ALE 1  1.90%             |                 |                       |                 |                                                      |   |
|                               | 12/31/2004           | N/A                        | 10.774               | 611                                                       |   |
|                               | 12/31/2005           | 10.774                     | 11.285               | 903                                                       |   |
|                               | 12/31/2006           | 11.285                     | 12.460               | 1029                                                      |   |
|                               | 12/31/2007           | 12.460                     | 12.599               | 857                                                       |   |
|                               | 12/31/2008           | 12.599                     | 9.404                | 551                                                       |   |
|                               | 12/31/2009           | 9.404                      | 11.335               | 572                                                       |   |
|                               | 12/31/2010           | 11.335                     | 12.428               | 628                                                       |   |
|                               | 12/31/2011           | 12.428                     | 11.929               | 648                                                       |   |
|                               | 12/31/2012           | 11.929                     | 13.097               | 661                                                       |   |
| ALE 3  1.80%             |                 |                       |                 |                                                      |   |
|                               | 12/31/2004           | N/A                        | 10.781               | 23                                                        |   |
|                               | 12/31/2005           | 10.781                     | 11.304               | 42                                                        |   |
|                               | 12/31/2006           | 11.304                     | 12.493               | 51                                                        |   |
|                               | 12/31/2007           | 12.493                     | 12.645               | 70                                                        |   |
|                               | 12/31/2008           | 12.645                     | 9.448                | 53                                                        |   |
|                               | 12/31/2009           | 9.448                      | 11.400               | 99                                                        |   |
|                               | 12/31/2010           | 11.400                     | 12.511               | 161                                                       |   |
|                               | 12/31/2011           | 12.511                     | 12.021               | 139                                                       |   |
|                               | 12/31/2012           | 12.021                     | 13.211               | 136                                                       |   |

----

| Benefit Option *       | Period or Year Ended | AUV at Beginning of Period | AUV at End of Period | Number of Accumulation Units Outstanding at End of Period |
|------------------------|----------------------|----------------------------|----------------------|-----------------------------------------------------------|
| Investment Option      |
| ALE 4  1.95% |                 |
|                   | 12/31/2004           | N/A                        | 10.770               | 7                                                         |   |
|                   | 12/31/2005           | 10.770                     | 11.276               | 24                                                        |   |
|                   | 12/31/2006           | 11.276                     | 12.443               | 28                                                        |   |
|                   | 12/31/2007           | 12.443                     | 12.575               | 30                                                        |   |
|                   | 12/31/2008           | 12.575                     | 9.382                | 21                                                        |   |
|                   | 12/31/2009           | 9.382                      | 11.303               | 23                                                        |   |
|                   | 12/31/2010           | 11.303                     | 12.387               | 19                                                        |   |
|                   | 12/31/2011           | 12.387                     | 11.883               | 32                                                        |   |
|                   | 12/31/2012           | 11.883                     | 13.040               | 26                                                        |   |
| ALE 5  2.40% |                 |                       |                 |                                                      |   |
|                   | 12/31/2004           | N/A                        | 10.738               | 704                                                       |   |
|                   | 12/31/2005           | 10.738                     | 11.191               | 1500                                                      |   |
|                   | 12/31/2006           | 11.191                     | 12.295               | 2089                                                      |   |
|                   | 12/31/2007           | 12.295                     | 12.369               | 2402                                                      |   |
|                   | 12/31/2008           | 12.369                     | 9.187                | 2189                                                      |   |
|                   | 12/31/2009           | 9.187                      | 11.018               | 1865                                                      |   |
|                   | 12/31/2010           | 11.018                     | 12.020               | 1809                                                      |   |
|                   | 12/31/2011           | 12.020                     | 11.480               | 2151                                                      |   |
|                   | 12/31/2012           | 11.480                     | 12.541               | 2273                                                      |   |
| ALO 1  1.70% |                 |                       |                 |                                                      |   |
|                   | 12/31/2004           | N/A                        | 10.788               | 495                                                       |   |
|                   | 12/31/2005           | 10.788                     | 11.323               | 638                                                       |   |
|                   | 12/31/2006           | 11.323                     | 12.526               | 613                                                       |   |
|                   | 12/31/2007           | 12.526                     | 12.691               | 531                                                       |   |
|                   | 12/31/2008           | 12.691                     | 9.492                | 375                                                       |   |
|                   | 12/31/2009           | 9.492                      | 11.465               | 321                                                       |   |
|                   | 12/31/2010           | 11.465                     | 12.595               | 277                                                       |   |
|                   | 12/31/2011           | 12.595                     | 12.113               | 308                                                       |   |
|                   | 12/31/2012           | 12.113                     | 13.326               | 287                                                       |   |
| ALO 2  1.90% |                 |                       |                 |                                                      |   |
|                   | 12/31/2004           | N/A                        | 10.774               | 3                                                         |   |
|                   | 12/31/2005           | 10.774                     | 11.285               | 22                                                        |   |
|                   | 12/31/2006           | 11.285                     | 12.460               | 32                                                        |   |
|                   | 12/31/2007           | 12.460                     | 12.599               | 28                                                        |   |
|                   | 12/31/2008           | 12.599                     | 9.404                | 43                                                        |   |
|                   | 12/31/2009           | 9.404                      | 11.335               | 30                                                        |   |
|                   | 12/31/2010           | 11.335                     | 12.428               | 33                                                        |   |
|                   | 12/31/2011           | 12.428                     | 11.929               | 40                                                        |   |
|                   | 12/31/2012           | 11.929                     | 13.097               | 46                                                        |   |
| ALO 3  1.80% |                 |                       |                 |                                                      |   |
|                   | 12/31/2004           | N/A                        | 10.781               | 1                                                         |   |
|                   | 12/31/2005           | 10.781                     | 11.304               | 1                                                         |   |
|                   | 12/31/2006           | 11.304                     | 12.493               | 8                                                         |   |
|                   | 12/31/2007           | 12.493                     | 12.645               | 10                                                        |   |
|                   | 12/31/2008           | 12.645                     | 9.448                | 14                                                        |   |
|                   | 12/31/2009           | 9.448                      | 11.400               | 20                                                        |   |
|                   | 12/31/2010           | 11.400                     | 12.511               | 19                                                        |   |
|                   | 12/31/2011           | 12.511                     | 12.021               | 20                                                        |   |
|                   | 12/31/2012           | 12.021                     | 13.211               | 20                                                        |   |
| ALO 4  2.00% |                 |
|                   | 12/31/2004           | N/A                        | 10.767               | 1                                                         |   |
|                   | 12/31/2005           | 10.767                     | 11.266               | 1                                                         |   |
|                   | 12/31/2006           | 11.266                     | 12.427               | 0                                                         |   |
|                   | 12/31/2007           | 12.427                     | 12.552               | 0                                                         |   |
|                   | 12/31/2008           | 12.552                     | 9.360                | 0                                                         |   |
|                   | 12/31/2009           | 9.360                      | 11.271               | 0                                                         |   |
|                   | 12/31/2010           | 11.271                     | 12.345               | 0                                                         |   |
|                   | 12/31/2011           | 12.345                     | 11.838               | 9                                                         |   |
|                   | 12/31/2012           | 11.838                     | 12.984               | 0                                                         |   |
| ALT 1  1.40% |                 |                       |                 |                                                      |   |
|                   | 12/31/2004           | N/A                        | 10.810               | 24                                                        |   |
|                   | 12/31/2005           | 10.810                     | 11.380               | 36                                                        |   |
|                   | 12/31/2006           | 11.380                     | 12.627               | 67                                                        |   |
|                   | 12/31/2007           | 12.627                     | 12.832               | 47                                                        |   |
|                   | 12/31/2008           | 12.832                     | 9.627                | 16                                                        |   |
|                   | 12/31/2009           | 9.627                      | 11.662               | 13                                                        |   |
|                   | 12/31/2010           | 11.662                     | 12.850               | 6                                                         |   |
|                   | 12/31/2011           | 12.850                     | 12.395               | 9                                                         |   |
|                   | 12/31/2012           | 12.395                     | 13.678               | 7                                                         |   |
| ALT 2  1.60% |                 |                       |                 |                                                      |   |
|                   | 12/31/2004           | N/A                        | 10.795               | 1                                                         |   |
|                   | 12/31/2005           | 10.795                     | 11.342               | 2                                                         |   |
|                   | 12/31/2006           | 11.342                     | 12.560               | 1                                                         |   |
|                   | 12/31/2007           | 12.560                     | 12.738               | 0                                                         |   |
|                   | 12/31/2008           | 12.738                     | 9.537                | 0                                                         |   |
|                   | 12/31/2009           | 9.537                      | 11.530               | 0                                                         |   |
|                   | 12/31/2010           | 11.530                     | 12.679               | 0                                                         |   |
|                   | 12/31/2011           | 12.679                     | 12.207               | 0                                                         |   |
|                   | 12/31/2012           | 12.207                     | 13.442               | 0                                                         |   |
| ALT 4  1.70% |                 |                       |                 |                                                      |   |
|                   | 12/31/2004           | N/A                        | 10.788               | 10                                                        |   |
|                   | 12/31/2005           | 10.788                     | 11.323               | 41                                                        |   |
|                   | 12/31/2006           | 11.323                     | 12.526               | 43                                                        |   |
|                   | 12/31/2007           | 12.526                     | 12.691               | 40                                                        |   |
|                   | 12/31/2008           | 12.691                     | 9.492                | 37                                                        |   |
|                   | 12/31/2009           | 9.492                      | 11.465               | 24                                                        |   |
|                   | 12/31/2010           | 11.465                     | 12.595               | 22                                                        |   |
|                   | 12/31/2011           | 12.595                     | 12.113               | 27                                                        |   |
|                   | 12/31/2012           | 12.113                     | 13.326               | 35                                                        |   |
| ALT 5  2.20% |                 |                       |                 |                                                      |   |
|                   | 12/31/2004           | N/A                        | 10.752               | 365                                                       |   |
|                   | 12/31/2005           | 10.752                     | 11.229               | 890                                                       |   |
|                   | 12/31/2006           | 11.229                     | 12.360               | 1169                                                      |   |
|                   | 12/31/2007           | 12.360                     | 12.461               | 1387                                                      |   |
|                   | 12/31/2008           | 12.461                     | 9.273                | 1562                                                      |   |
|                   | 12/31/2009           | 9.273                      | 11.144               | 1259                                                      |   |
|                   | 12/31/2010           | 11.144                     | 12.182               | 1231                                                      |   |
|                   | 12/31/2011           | 12.182                     | 11.658               | 1551                                                      |   |
|                   | 12/31/2012           | 11.658                     | 12.760               | 1595                                                      |   |

----

| Benefit Option *       | Period or Year Ended | AUV at Beginning of Period | AUV at End of Period | Number of Accumulation Units Outstanding at End of Period |
|------------------------|----------------------|----------------------------|----------------------|-----------------------------------------------------------|
| Investment Option      |
| AZL Money Market Fund  |                 |
| ALE 1  1.90% |                 |                       |                 |                                                      |   |
|                   | 12/31/2003           | N/A                        | 10.208               | 2432                                                      |   |
|                   | 12/31/2004           | 10.208                     | 10.083               | 1767                                                      |   |
|                   | 12/31/2005           | 10.083                     | 10.148               | 1965                                                      |   |
|                   | 12/31/2006           | 10.148                     | 10.400               | 2388                                                      |   |
|                   | 12/31/2007           | 10.400                     | 10.693               | 3449                                                      |   |
|                   | 12/31/2008           | 10.693                     | 10.748               | 3764                                                      |   |
|                   | 12/31/2009           | 10.748                     | 10.568               | 2460                                                      |   |
|                   | 12/31/2010           | 10.568                     | 10.370               | 1817                                                      |   |
|                   | 12/31/2011           | 10.370                     | 10.176               | 1767                                                      |   |
|                   | 12/31/2012           | 10.176                     | 9.983                | 1478                                                      |   |
| ALE 3  1.80% |                 |                       |                 |                                                      |   |
|                   | 12/31/2003           | N/A                        | 10.248               | 18                                                        |   |
|                   | 12/31/2004           | 10.248                     | 10.133               | 31                                                        |   |
|                   | 12/31/2005           | 10.133                     | 10.208               | 46                                                        |   |
|                   | 12/31/2006           | 10.208                     | 10.472               | 117                                                       |   |
|                   | 12/31/2007           | 10.472                     | 10.778               | 154                                                       |   |
|                   | 12/31/2008           | 10.778                     | 10.844               | 209                                                       |   |
|                   | 12/31/2009           | 10.844                     | 10.674               | 184                                                       |   |
|                   | 12/31/2010           | 10.674                     | 10.484               | 129                                                       |   |
|                   | 12/31/2011           | 10.484                     | 10.298               | 99                                                        |   |
|                   | 12/31/2012           | 10.298                     | 10.113               | 77                                                        |   |
| ALE 4  1.95% |                 |                       |                 |                                                      |   |
|                   | 12/31/2003           | N/A                        | 10.188               | 3                                                         |   |
|                   | 12/31/2004           | 10.188                     | 10.058               | 30                                                        |   |
|                   | 12/31/2005           | 10.058                     | 10.118               | 31                                                        |   |
|                   | 12/31/2006           | 10.118                     | 10.364               | 49                                                        |   |
|                   | 12/31/2007           | 10.364                     | 10.651               | 101                                                       |   |
|                   | 12/31/2008           | 10.651                     | 10.700               | 162                                                       |   |
|                   | 12/31/2009           | 10.700                     | 10.516               | 111                                                       |   |
|                   | 12/31/2010           | 10.516                     | 10.314               | 95                                                        |   |
|                   | 12/31/2011           | 10.314                     | 10.115               | 42                                                        |   |
|                   | 12/31/2012           | 10.115                     | 9.919                | 24                                                        |   |
| ALE 5  2.40% |                 |                       |                 |                                                      |   |
|                   | 12/31/2003           | N/A                        | 10.010               | 658                                                       |   |
|                   | 12/31/2004           | 10.010                     | 9.838                | 1205                                                      |   |
|                   | 12/31/2005           | 9.838                      | 9.852                | 1915                                                      |   |
|                   | 12/31/2006           | 9.852                      | 10.046               | 2245                                                      |   |
|                   | 12/31/2007           | 10.046                     | 10.278               | 3231                                                      |   |
|                   | 12/31/2008           | 10.278                     | 10.279               | 5580                                                      |   |
|                   | 12/31/2009           | 10.279                     | 10.057               | 4400                                                      |   |
|                   | 12/31/2010           | 10.057                     | 9.819                | 3815                                                      |   |
|                   | 12/31/2011           | 9.819                      | 9.587                | 3583                                                      |   |
|                   | 12/31/2012           | 9.587                      | 9.358                | 3481                                                      |   |
| ALO 1  1.70% |                 |                       |                 |                                                      |   |
|                   | 12/31/2003           | N/A                        | 10.288               | 1943                                                      |   |
|                   | 12/31/2004           | 10.288                     | 10.183               | 1045                                                      |   |
|                   | 12/31/2005           | 10.183                     | 10.269               | 1087                                                      |   |
|                   | 12/31/2006           | 10.269                     | 10.545               | 1359                                                      |   |
|                   | 12/31/2007           | 10.545                     | 10.864               | 1816                                                      |   |
|                   | 12/31/2008           | 10.864                     | 10.941               | 2202                                                      |   |
|                   | 12/31/2009           | 10.941                     | 10.780               | 1495                                                      |   |
|                   | 12/31/2010           | 10.780                     | 10.599               | 913                                                       |   |
|                   | 12/31/2011           | 10.599                     | 10.421               | 842                                                       |   |
|                   | 12/31/2012           | 10.421                     | 10.245               | 602                                                       |   |
| ALO 2  1.90% |                 |
|                   | 12/31/2003           | N/A                        | 10.208               | 296                                                       |   |
|                   | 12/31/2004           | 10.208                     | 10.083               | 178                                                       |   |
|                   | 12/31/2005           | 10.083                     | 10.148               | 195                                                       |   |
|                   | 12/31/2006           | 10.148                     | 10.400               | 279                                                       |   |
|                   | 12/31/2007           | 10.400                     | 10.693               | 285                                                       |   |
|                   | 12/31/2008           | 10.693                     | 10.748               | 443                                                       |   |
|                   | 12/31/2009           | 10.748                     | 10.568               | 360                                                       |   |
|                   | 12/31/2010           | 10.568                     | 10.370               | 225                                                       |   |
|                   | 12/31/2011           | 10.370                     | 10.176               | 234                                                       |   |
|                   | 12/31/2012           | 10.176                     | 9.983                | 174                                                       |   |
| ALO 3  1.80% |                 |                       |                 |                                                      |   |
|                   | 12/31/2003           | N/A                        | 10.248               | 6                                                         |   |
|                   | 12/31/2004           | 10.248                     | 10.133               | 6                                                         |   |
|                   | 12/31/2005           | 10.133                     | 10.208               | 2                                                         |   |
|                   | 12/31/2006           | 10.208                     | 10.472               | 87                                                        |   |
|                   | 12/31/2007           | 10.472                     | 10.778               | 5                                                         |   |
|                   | 12/31/2008           | 10.778                     | 10.844               | 23                                                        |   |
|                   | 12/31/2009           | 10.844                     | 10.674               | 25                                                        |   |
|                   | 12/31/2010           | 10.674                     | 10.484               | 12                                                        |   |
|                   | 12/31/2011           | 10.484                     | 10.298               | 52                                                        |   |
|                   | 12/31/2012           | 10.298                     | 10.113               | 3                                                         |   |
| ALO 4  2.00% |                 |                       |                 |                                                      |   |
|                   | 12/31/2003           | N/A                        | 10.168               | 0                                                         |   |
|                   | 12/31/2004           | 10.168                     | 10.033               | 10                                                        |   |
|                   | 12/31/2005           | 10.033                     | 10.088               | 1                                                         |   |
|                   | 12/31/2006           | 10.088                     | 10.328               | 0                                                         |   |
|                   | 12/31/2007           | 10.328                     | 10.609               | 0                                                         |   |
|                   | 12/31/2008           | 10.609                     | 10.652               | 8                                                         |   |
|                   | 12/31/2009           | 10.652                     | 10.464               | 1                                                         |   |
|                   | 12/31/2010           | 10.464                     | 10.258               | 7                                                         |   |
|                   | 12/31/2011           | 10.258                     | 10.055               | 7                                                         |   |
|                   | 12/31/2012           | 10.055                     | 9.855                | 1                                                         |   |
| ALT 1  1.40% |                 |                       |                 |                                                      |   |
|                   | 12/31/2003           | N/A                        | 10.410               | 541                                                       |   |
|                   | 12/31/2004           | 10.410                     | 10.334               | 396                                                       |   |
|                   | 12/31/2005           | 10.334                     | 10.453               | 378                                                       |   |
|                   | 12/31/2006           | 10.453                     | 10.766               | 471                                                       |   |
|                   | 12/31/2007           | 10.766                     | 11.125               | 396                                                       |   |
|                   | 12/31/2008           | 11.125                     | 11.238               | 436                                                       |   |
|                   | 12/31/2009           | 11.238                     | 11.106               | 166                                                       |   |
|                   | 12/31/2010           | 11.106                     | 10.952               | 129                                                       |   |
|                   | 12/31/2011           | 10.952                     | 10.801               | 92                                                        |   |
|                   | 12/31/2012           | 10.801                     | 10.650               | 72                                                        |   |
| ALT 2  1.60% |                 |                       |                 |                                                      |   |
|                   | 12/31/2003           | N/A                        | 10.329               | 11                                                        |   |
|                   | 12/31/2004           | 10.329                     | 10.233               | 3                                                         |   |
|                   | 12/31/2005           | 10.233                     | 10.330               | 23                                                        |   |
|                   | 12/31/2006           | 10.330                     | 10.618               | 2                                                         |   |
|                   | 12/31/2007           | 10.618                     | 10.950               | 0                                                         |   |
|                   | 12/31/2008           | 10.950                     | 11.039               | 0                                                         |   |
|                   | 12/31/2009           | 11.039                     | 10.888               | 0                                                         |   |
|                   | 12/31/2010           | 10.888                     | 10.716               | 1                                                         |   |
|                   | 12/31/2011           | 10.716                     | 10.546               | 0                                                         |   |
|                   | 12/31/2012           | 10.546                     | 10.378               | 0                                                         |   |

----

| Benefit Option *             | Period or Year Ended | AUV at Beginning of Period | AUV at End of Period | Number of Accumulation Units Outstanding at End of Period |
|------------------------------|----------------------|----------------------------|----------------------|-----------------------------------------------------------|
| Investment Option            |
| ALT 4  1.70%       |                 |
|                         | 12/31/2003           | N/A                        | 10.288               | 19                                                        |   |
|                         | 12/31/2004           | 10.288                     | 10.183               | 90                                                        |   |
|                         | 12/31/2005           | 10.183                     | 10.269               | 165                                                       |   |
|                         | 12/31/2006           | 10.269                     | 10.545               | 166                                                       |   |
|                         | 12/31/2007           | 10.545                     | 10.864               | 170                                                       |   |
|                         | 12/31/2008           | 10.864                     | 10.941               | 382                                                       |   |
|                         | 12/31/2009           | 10.941                     | 10.780               | 199                                                       |   |
|                         | 12/31/2010           | 10.780                     | 10.599               | 113                                                       |   |
|                         | 12/31/2011           | 10.599                     | 10.421               | 86                                                        |   |
|                         | 12/31/2012           | 10.421                     | 10.245               | 55                                                        |   |
| ALT 5  2.20%       |                 |                       |                 |                                                      |   |
|                         | 12/31/2003           | N/A                        | 10.089               | 369                                                       |   |
|                         | 12/31/2004           | 10.089                     | 9.935                | 861                                                       |   |
|                         | 12/31/2005           | 9.935                      | 9.969                | 1505                                                      |   |
|                         | 12/31/2006           | 9.969                      | 10.186               | 1870                                                      |   |
|                         | 12/31/2007           | 10.186                     | 10.442               | 2802                                                      |   |
|                         | 12/31/2008           | 10.442                     | 10.464               | 5845                                                      |   |
|                         | 12/31/2009           | 10.464                     | 10.258               | 5012                                                      |   |
|                         | 12/31/2010           | 10.258                     | 10.036               | 4320                                                      |   |
|                         | 12/31/2011           | 10.036                     | 9.818                | 4104                                                      |   |
|                         | 12/31/2012           | 9.818                      | 9.603                | 3946                                                      |   |
| AZL MVP Fusion Balanced Fund |                 |
| ALE 1  1.90%       |                 |                       |                 |                                                      |   |
|                         | 12/31/2005           | N/A                        | 10.594               | 203                                                       |   |
|                         | 12/31/2006           | 10.594                     | 11.381               | 1207                                                      |   |
|                         | 12/31/2007           | 11.381                     | 11.960               | 957                                                       |   |
|                         | 12/31/2008           | 11.960                     | 8.514                | 967                                                       |   |
|                         | 12/31/2009           | 8.514                      | 10.586               | 1220                                                      |   |
|                         | 12/31/2010           | 10.586                     | 11.536               | 1107                                                      |   |
|                         | 12/31/2011           | 11.536                     | 11.217               | 937                                                       |   |
|                         | 12/31/2012           | 11.217                     | 12.259               | 913                                                       |   |
| ALE 3  1.80%       |                 |                       |                 |                                                      |   |
|                         | 12/31/2005           | N/A                        | 10.601               | 38                                                        |   |
|                         | 12/31/2006           | 10.601                     | 11.400               | 83                                                        |   |
|                         | 12/31/2007           | 11.400                     | 11.992               | 147                                                       |   |
|                         | 12/31/2008           | 11.992                     | 8.546                | 120                                                       |   |
|                         | 12/31/2009           | 8.546                      | 10.635               | 116                                                       |   |
|                         | 12/31/2010           | 10.635                     | 11.602               | 148                                                       |   |
|                         | 12/31/2011           | 11.602                     | 11.293               | 123                                                       |   |
|                         | 12/31/2012           | 11.293                     | 12.354               | 96                                                        |   |
| ALE 4  1.95%       |                 |                       |                 |                                                      |   |
|                         | 12/31/2005           | N/A                        | 10.590               | 3                                                         |   |
|                         | 12/31/2006           | 10.590                     | 11.372               | 19                                                        |   |
|                         | 12/31/2007           | 11.372                     | 11.944               | 27                                                        |   |
|                         | 12/31/2008           | 11.944                     | 8.499                | 21                                                        |   |
|                         | 12/31/2009           | 8.499                      | 10.561               | 22                                                        |   |
|                         | 12/31/2010           | 10.561                     | 11.503               | 39                                                        |   |
|                         | 12/31/2011           | 11.503                     | 11.180               | 30                                                        |   |
|                         | 12/31/2012           | 11.180                     | 12.212               | 27                                                        |   |
| ALE 5  2.40%       |                 |
|                         | 12/31/2005           | N/A                        | 10.559               | 695                                                       |   |
|                         | 12/31/2006           | 10.559                     | 11.287               | 1460                                                      |   |
|                         | 12/31/2007           | 11.287                     | 11.802               | 1878                                                      |   |
|                         | 12/31/2008           | 11.802                     | 8.359                | 2256                                                      |   |
|                         | 12/31/2009           | 8.359                      | 10.341               | 2615                                                      |   |
|                         | 12/31/2010           | 10.341                     | 11.213               | 2693                                                      |   |
|                         | 12/31/2011           | 11.213                     | 10.849               | 2354                                                      |   |
|                         | 12/31/2012           | 10.849                     | 11.797               | 1913                                                      |   |
| ALO 1  1.70%       |                 |                       |                 |                                                      |   |
|                         | 12/31/2005           | N/A                        | 10.608               | 66                                                        |   |
|                         | 12/31/2006           | 10.608                     | 11.419               | 264                                                       |   |
|                         | 12/31/2007           | 11.419                     | 12.025               | 276                                                       |   |
|                         | 12/31/2008           | 12.025                     | 8.577                | 491                                                       |   |
|                         | 12/31/2009           | 8.577                      | 10.685               | 577                                                       |   |
|                         | 12/31/2010           | 10.685                     | 11.668               | 427                                                       |   |
|                         | 12/31/2011           | 11.668                     | 11.368               | 366                                                       |   |
|                         | 12/31/2012           | 11.368                     | 12.449               | 308                                                       |   |
| ALO 2  1.90%       |                 |                       |                 |                                                      |   |
|                         | 12/31/2005           | N/A                        | 10.594               | 33                                                        |   |
|                         | 12/31/2006           | 10.594                     | 11.381               | 65                                                        |   |
|                         | 12/31/2007           | 11.381                     | 11.960               | 89                                                        |   |
|                         | 12/31/2008           | 11.960                     | 8.514                | 78                                                        |   |
|                         | 12/31/2009           | 8.514                      | 10.586               | 86                                                        |   |
|                         | 12/31/2010           | 10.586                     | 11.536               | 170                                                       |   |
|                         | 12/31/2011           | 11.536                     | 11.217               | 175                                                       |   |
|                         | 12/31/2012           | 11.217                     | 12.259               | 64                                                        |   |
| ALO 3  1.80%       |                 |                       |                 |                                                      |   |
|                         | 12/31/2005           | N/A                        | 10.601               | 3                                                         |   |
|                         | 12/31/2006           | 10.601                     | 11.400               | 4                                                         |   |
|                         | 12/31/2007           | 11.400                     | 11.992               | 25                                                        |   |
|                         | 12/31/2008           | 11.992                     | 8.546                | 10                                                        |   |
|                         | 12/31/2009           | 8.546                      | 10.635               | 9                                                         |   |
|                         | 12/31/2010           | 10.635                     | 11.602               | 9                                                         |   |
|                         | 12/31/2011           | 11.602                     | 11.293               | 9                                                         |   |
|                         | 12/31/2012           | 11.293                     | 12.354               | 18                                                        |   |
| ALO 4  2.00%       |                 |                       |                 |                                                      |   |
|                         | 12/31/2005           | N/A                        | 10.587               | 0                                                         |   |
|                         | 12/31/2006           | 10.587                     | 11.362               | 0                                                         |   |
|                         | 12/31/2007           | 11.362                     | 11.929               | 0                                                         |   |
|                         | 12/31/2008           | 11.929                     | 8.483                | 0                                                         |   |
|                         | 12/31/2009           | 8.483                      | 10.536               | 0                                                         |   |
|                         | 12/31/2010           | 10.536                     | 11.471               | 0                                                         |   |
|                         | 12/31/2011           | 11.471                     | 11.143               | 0                                                         |   |
|                         | 12/31/2012           | 11.143                     | 12.165               | 0                                                         |   |
| ALT 1  1.40%       |                 |                       |                 |                                                      |   |
|                         | 12/31/2005           | N/A                        | 10.630               | 37                                                        |   |
|                         | 12/31/2006           | 10.630                     | 11.477               | 56                                                        |   |
|                         | 12/31/2007           | 11.477                     | 12.121               | 94                                                        |   |
|                         | 12/31/2008           | 12.121                     | 8.672                | 76                                                        |   |
|                         | 12/31/2009           | 8.672                      | 10.836               | 71                                                        |   |
|                         | 12/31/2010           | 10.836                     | 11.868               | 35                                                        |   |
|                         | 12/31/2011           | 11.868                     | 11.598               | 26                                                        |   |
|                         | 12/31/2012           | 11.598                     | 12.739               | 22                                                        |   |

----

| Benefit Option *                 | Period or Year Ended | AUV at Beginning of Period | AUV at End of Period | Number of Accumulation Units Outstanding at End of Period |
|----------------------------------|----------------------|----------------------------|----------------------|-----------------------------------------------------------|
| Investment Option                |
| ALT 2  1.60%           |                 |
|                             | 12/31/2005           | N/A                        | 10.615               | 0                                                         |   |
|                             | 12/31/2006           | 10.615                     | 11.439               | 0                                                         |   |
|                             | 12/31/2007           | 11.439                     | 12.057               | 0                                                         |   |
|                             | 12/31/2008           | 12.057                     | 8.609                | 0                                                         |   |
|                             | 12/31/2009           | 8.609                      | 10.735               | 0                                                         |   |
|                             | 12/31/2010           | 10.735                     | 11.734               | 0                                                         |   |
|                             | 12/31/2011           | 11.734                     | 11.444               | 0                                                         |   |
|                             | 12/31/2012           | 11.444                     | 12.545               | 0                                                         |   |
| ALT 4  1.70%           |                 |                       |                 |                                                      |   |
|                             | 12/31/2005           | N/A                        | 10.608               | 210                                                       |   |
|                             | 12/31/2006           | 10.608                     | 11.419               | 255                                                       |   |
|                             | 12/31/2007           | 11.419                     | 12.025               | 266                                                       |   |
|                             | 12/31/2008           | 12.025                     | 8.577                | 113                                                       |   |
|                             | 12/31/2009           | 8.577                      | 10.685               | 110                                                       |   |
|                             | 12/31/2010           | 10.685                     | 11.668               | 91                                                        |   |
|                             | 12/31/2011           | 11.668                     | 11.368               | 76                                                        |   |
|                             | 12/31/2012           | 11.368                     | 12.449               | 66                                                        |   |
| ALT 5  2.20%           |                 |                       |                 |                                                      |   |
|                             | 12/31/2005           | N/A                        | 10.573               | 681                                                       |   |
|                             | 12/31/2006           | 10.573                     | 11.325               | 1766                                                      |   |
|                             | 12/31/2007           | 11.325                     | 11.865               | 2214                                                      |   |
|                             | 12/31/2008           | 11.865                     | 8.421                | 3338                                                      |   |
|                             | 12/31/2009           | 8.421                      | 10.438               | 3678                                                      |   |
|                             | 12/31/2010           | 10.438                     | 11.341               | 3866                                                      |   |
|                             | 12/31/2011           | 11.341                     | 10.995               | 3620                                                      |   |
|                             | 12/31/2012           | 10.995                     | 11.980               | 3356                                                      |   |
| AZL MVP Fusion Conservative Fund |                 |
| ALE 1  1.90%           |                 |                       |                 |                                                      |   |
|                             | 12/31/2009           | N/A                        | 10.144               | 2                                                         |   |
|                             | 12/31/2010           | 10.144                     | 11.044               | 121                                                       |   |
|                             | 12/31/2011           | 11.044                     | 10.907               | 265                                                       |   |
|                             | 12/31/2012           | 10.907                     | 11.906               | 418                                                       |   |
| ALE 3  1.80%           |                 |                       |                 |                                                      |   |
|                             | 12/31/2009           | N/A                        | 10.146               | 0                                                         |   |
|                             | 12/31/2010           | 10.146                     | 11.058               | 3                                                         |   |
|                             | 12/31/2011           | 11.058                     | 10.931               | 3                                                         |   |
|                             | 12/31/2012           | 10.931                     | 11.944               | 3                                                         |   |
| ALE 4  1.95%           |                 |                       |                 |                                                      |   |
|                             | 12/31/2009           | N/A                        | 10.143               | 0                                                         |   |
|                             | 12/31/2010           | 10.143                     | 11.038               | 0                                                         |   |
|                             | 12/31/2011           | 11.038                     | 10.895               | 13                                                        |   |
|                             | 12/31/2012           | 10.895                     | 11.887               | 13                                                        |   |
| ALE 5  2.40%           |                 |                       |                 |                                                      |   |
|                             | 12/31/2009           | N/A                        | 10.134               | 5                                                         |   |
|                             | 12/31/2010           | 10.134                     | 10.979               | 396                                                       |   |
|                             | 12/31/2011           | 10.979                     | 10.788               | 530                                                       |   |
|                             | 12/31/2012           | 10.788                     | 11.718               | 1064                                                      |   |
| ALO 1  1.70%           |                 |                       |                 |                                                      |   |
|                             | 12/31/2009           | N/A                        | 10.148               | 0                                                         |   |
|                             | 12/31/2010           | 10.148                     | 11.071               | 95                                                        |   |
|                             | 12/31/2011           | 11.071                     | 10.955               | 119                                                       |   |
|                             | 12/31/2012           | 10.955                     | 11.983               | 172                                                       |   |
| ALO 2  1.90%           |                 |                       |                 |                                                      |   |
|                             | 12/31/2009           | N/A                        | 10.144               | 2                                                         |   |
|                             | 12/31/2010           | 10.144                     | 11.044               | 2                                                         |   |
|                             | 12/31/2011           | 11.044                     | 10.907               | 5                                                         |   |
|                             | 12/31/2012           | 10.907                     | 11.906               | 9                                                         |   |
| ALO 3  1.80%           |                 |
|                             | 12/31/2009           | N/A                        | 10.146               | 0                                                         |   |
|                             | 12/31/2010           | 10.146                     | 11.058               | 4                                                         |   |
|                             | 12/31/2011           | 11.058                     | 10.931               | 6                                                         |   |
|                             | 12/31/2012           | 10.931                     | 11.944               | 6                                                         |   |
| ALO 4  2.00%           |                 |                       |                 |                                                      |   |
|                             | 12/31/2009           | N/A                        | 10.142               | 0                                                         |   |
|                             | 12/31/2010           | 10.142                     | 11.031               | 0                                                         |   |
|                             | 12/31/2011           | 11.031                     | 10.883               | 0                                                         |   |
|                             | 12/31/2012           | 10.883                     | 11.868               | 0                                                         |   |
| ALT 1  1.40%           |                 |                       |                 |                                                      |   |
|                             | 12/31/2009           | N/A                        | 10.154               | 0                                                         |   |
|                             | 12/31/2010           | 10.154                     | 11.111               | 2                                                         |   |
|                             | 12/31/2011           | 11.111                     | 11.027               | 14                                                        |   |
|                             | 12/31/2012           | 11.027                     | 12.098               | 14                                                        |   |
| ALT 2  1.60%           |                 |                       |                 |                                                      |   |
|                             | 12/31/2009           | N/A                        | 10.150               | 0                                                         |   |
|                             | 12/31/2010           | 10.150                     | 11.084               | 0                                                         |   |
|                             | 12/31/2011           | 11.084                     | 10.979               | 0                                                         |   |
|                             | 12/31/2012           | 10.979                     | 12.021               | 0                                                         |   |
| ALT 4  1.70%           |                 |                       |                 |                                                      |   |
|                             | 12/31/2009           | N/A                        | 10.148               | 1                                                         |   |
|                             | 12/31/2010           | 10.148                     | 11.071               | 11                                                        |   |
|                             | 12/31/2011           | 11.071                     | 10.955               | 11                                                        |   |
|                             | 12/31/2012           | 10.955                     | 11.983               | 9                                                         |   |
| ALT 5  2.20%           |                 |                       |                 |                                                      |   |
|                             | 12/31/2009           | N/A                        | 10.138               | 71                                                        |   |
|                             | 12/31/2010           | 10.138                     | 11.005               | 257                                                       |   |
|                             | 12/31/2011           | 11.005                     | 10.835               | 546                                                       |   |
|                             | 12/31/2012           | 10.835                     | 11.793               | 886                                                       |   |
| AZL MVP Fusion Moderate Fund     |                 |
| ALE 1  1.90%           |                 |                       |                 |                                                      |   |
|                             | 12/31/2005           | N/A                        | 10.772               | 1370                                                      |   |
|                             | 12/31/2006           | 10.772                     | 11.702               | 2008                                                      |   |
|                             | 12/31/2007           | 11.702                     | 12.231               | 1890                                                      |   |
|                             | 12/31/2008           | 12.231                     | 8.070                | 2067                                                      |   |
|                             | 12/31/2009           | 8.070                      | 10.247               | 1946                                                      |   |
|                             | 12/31/2010           | 10.247                     | 11.235               | 1671                                                      |   |
|                             | 12/31/2011           | 11.235                     | 10.711               | 1615                                                      |   |
|                             | 12/31/2012           | 10.711                     | 11.826               | 1372                                                      |   |
| ALE 3  1.80%           |                 |                       |                 |                                                      |   |
|                             | 12/31/2005           | N/A                        | 10.779               | 37                                                        |   |
|                             | 12/31/2006           | 10.779                     | 11.721               | 90                                                        |   |
|                             | 12/31/2007           | 11.721                     | 12.264               | 119                                                       |   |
|                             | 12/31/2008           | 12.264                     | 8.099                | 112                                                       |   |
|                             | 12/31/2009           | 8.099                      | 10.295               | 106                                                       |   |
|                             | 12/31/2010           | 10.295                     | 11.299               | 98                                                        |   |
|                             | 12/31/2011           | 11.299                     | 10.783               | 92                                                        |   |
|                             | 12/31/2012           | 10.783                     | 11.917               | 81                                                        |   |
| ALE 4  1.95%           |                 |                       |                 |                                                      |   |
|                             | 12/31/2005           | N/A                        | 10.768               | 17                                                        |   |
|                             | 12/31/2006           | 10.768                     | 11.692               | 61                                                        |   |
|                             | 12/31/2007           | 11.692                     | 12.215               | 47                                                        |   |
|                             | 12/31/2008           | 12.215                     | 8.055                | 47                                                        |   |
|                             | 12/31/2009           | 8.055                      | 10.223               | 41                                                        |   |
|                             | 12/31/2010           | 10.223                     | 11.203               | 39                                                        |   |
|                             | 12/31/2011           | 11.203                     | 10.676               | 39                                                        |   |
|                             | 12/31/2012           | 10.676                     | 11.780               | 26                                                        |   |

----

| Benefit Option *                      | Period or Year Ended | AUV at Beginning of Period | AUV at End of Period | Number of Accumulation Units Outstanding at End of Period |
|---------------------------------------|----------------------|----------------------------|----------------------|-----------------------------------------------------------|
| ALE 5  2.40%                |                 |
|                                  | 12/31/2005           | N/A                        | 10.736               | 2465                                                      |   |
|                                  | 12/31/2006           | 10.736                     | 11.604               | 4727                                                      |   |
|                                  | 12/31/2007           | 11.604                     | 12.069               | 5581                                                      |   |
|                                  | 12/31/2008           | 12.069                     | 7.923                | 5359                                                      |   |
|                                  | 12/31/2009           | 7.923                      | 10.011               | 5641                                                      |   |
|                                  | 12/31/2010           | 10.011                     | 10.921               | 5786                                                      |   |
|                                  | 12/31/2011           | 10.921                     | 10.360               | 5656                                                      |   |
|                                  | 12/31/2012           | 10.360                     | 11.380               | 5202                                                      |   |
| ALO 1  1.70%                |                 |                       |                 |                                                      |   |
|                                  | 12/31/2005           | N/A                        | 10.786               | 316                                                       |   |
|                                  | 12/31/2006           | 10.786                     | 11.741               | 529                                                       |   |
|                                  | 12/31/2007           | 11.741                     | 12.297               | 533                                                       |   |
|                                  | 12/31/2008           | 12.297                     | 8.129                | 330                                                       |   |
|                                  | 12/31/2009           | 8.129                      | 10.344               | 338                                                       |   |
|                                  | 12/31/2010           | 10.344                     | 11.364               | 350                                                       |   |
|                                  | 12/31/2011           | 11.364                     | 10.855               | 268                                                       |   |
|                                  | 12/31/2012           | 10.855                     | 12.009               | 328                                                       |   |
| ALO 2  1.90%                |                 |                       |                 |                                                      |   |
|                                  | 12/31/2005           | N/A                        | 10.772               | 52                                                        |   |
|                                  | 12/31/2006           | 10.772                     | 11.702               | 149                                                       |   |
|                                  | 12/31/2007           | 11.702                     | 12.231               | 132                                                       |   |
|                                  | 12/31/2008           | 12.231                     | 8.070                | 92                                                        |   |
|                                  | 12/31/2009           | 8.070                      | 10.247               | 89                                                        |   |
|                                  | 12/31/2010           | 10.247                     | 11.235               | 93                                                        |   |
|                                  | 12/31/2011           | 11.235                     | 10.711               | 161                                                       |   |
|                                  | 12/31/2012           | 10.711                     | 11.826               | 146                                                       |   |
| ALO 3  1.80%                |                 |                       |                 |                                                      |   |
|                                  | 12/31/2005           | N/A                        | 10.779               | 5                                                         |   |
|                                  | 12/31/2006           | 10.779                     | 11.721               | 26                                                        |   |
|                                  | 12/31/2007           | 11.721                     | 12.264               | 44                                                        |   |
|                                  | 12/31/2008           | 12.264                     | 8.099                | 128                                                       |   |
|                                  | 12/31/2009           | 8.099                      | 10.295               | 123                                                       |   |
|                                  | 12/31/2010           | 10.295                     | 11.299               | 128                                                       |   |
|                                  | 12/31/2011           | 11.299                     | 10.783               | 131                                                       |   |
|                                  | 12/31/2012           | 10.783                     | 11.917               | 96                                                        |   |
| ALO 4  2.00%                |                 |                       |                 |                                                      |   |
|                                  | 12/31/2005           | N/A                        | 10.765               | 6                                                         |   |
|                                  | 12/31/2006           | 10.765                     | 11.682               | 12                                                        |   |
|                                  | 12/31/2007           | 11.682                     | 12.199               | 12                                                        |   |
|                                  | 12/31/2008           | 12.199                     | 8.040                | 12                                                        |   |
|                                  | 12/31/2009           | 8.040                      | 10.200               | 5                                                         |   |
|                                  | 12/31/2010           | 10.200                     | 11.172               | 4                                                         |   |
|                                  | 12/31/2011           | 11.172                     | 10.640               | 3                                                         |   |
|                                  | 12/31/2012           | 10.640                     | 11.735               | 3                                                         |   |
| ALT 1  1.40%                |                 |                       |                 |                                                      |   |
|                                  | 12/31/2005           | N/A                        | 10.808               | 33                                                        |   |
|                                  | 12/31/2006           | 10.808                     | 11.800               | 74                                                        |   |
|                                  | 12/31/2007           | 11.800                     | 12.396               | 93                                                        |   |
|                                  | 12/31/2008           | 12.396                     | 8.219                | 54                                                        |   |
|                                  | 12/31/2009           | 8.219                      | 10.490               | 51                                                        |   |
|                                  | 12/31/2010           | 10.490                     | 11.559               | 51                                                        |   |
|                                  | 12/31/2011           | 11.559                     | 11.075               | 56                                                        |   |
|                                  | 12/31/2012           | 11.075                     | 12.289               | 62                                                        |   |
| ALT 2  1.60%                |                 |
|                                  | 12/31/2005           | N/A                        | 10.793               | 0                                                         |   |
|                                  | 12/31/2006           | 10.793                     | 11.760               | 0                                                         |   |
|                                  | 12/31/2007           | 11.760                     | 12.330               | 0                                                         |   |
|                                  | 12/31/2008           | 12.330                     | 8.159                | 0                                                         |   |
|                                  | 12/31/2009           | 8.159                      | 10.392               | 0                                                         |   |
|                                  | 12/31/2010           | 10.392                     | 11.428               | 0                                                         |   |
|                                  | 12/31/2011           | 11.428                     | 10.928               | 0                                                         |   |
|                                  | 12/31/2012           | 10.928                     | 12.101               | 0                                                         |   |
| ALT 4  1.70%                |                 |                       |                 |                                                      |   |
|                                  | 12/31/2005           | N/A                        | 10.786               | 171                                                       |   |
|                                  | 12/31/2006           | 10.786                     | 11.741               | 217                                                       |   |
|                                  | 12/31/2007           | 11.741                     | 12.297               | 188                                                       |   |
|                                  | 12/31/2008           | 12.297                     | 8.129                | 131                                                       |   |
|                                  | 12/31/2009           | 8.129                      | 10.344               | 141                                                       |   |
|                                  | 12/31/2010           | 10.344                     | 11.364               | 123                                                       |   |
|                                  | 12/31/2011           | 11.364                     | 10.855               | 106                                                       |   |
|                                  | 12/31/2012           | 10.855                     | 12.009               | 94                                                        |   |
| ALT 5  2.20%                |                 |                       |                 |                                                      |   |
|                                  | 12/31/2005           | N/A                        | 10.750               | 2618                                                      |   |
|                                  | 12/31/2006           | 10.750                     | 11.643               | 5316                                                      |   |
|                                  | 12/31/2007           | 11.643                     | 12.133               | 6671                                                      |   |
|                                  | 12/31/2008           | 12.133                     | 7.981                | 6983                                                      |   |
|                                  | 12/31/2009           | 7.981                      | 10.105               | 7164                                                      |   |
|                                  | 12/31/2010           | 10.105                     | 11.046               | 7066                                                      |   |
|                                  | 12/31/2011           | 11.046                     | 10.499               | 7102                                                      |   |
|                                  | 12/31/2012           | 10.499                     | 11.556               | 6580                                                      |   |
| BlackRock Global Allocation V.I. Fund |                 |
| ALE 1  1.90%                |                 |                       |                 |                                                      |   |
|                                  | 12/31/2008           | N/A                        | 7.893                | 348                                                       |   |
|                                  | 12/31/2009           | 7.893                      | 9.364                | 970                                                       |   |
|                                  | 12/31/2010           | 9.364                      | 10.085               | 1255                                                      |   |
|                                  | 12/31/2011           | 10.085                     | 9.535                | 1398                                                      |   |
|                                  | 12/31/2012           | 9.535                      | 10.287               | 1373                                                      |   |
| ALE 3  1.80%                |                 |                       |                 |                                                      |   |
|                                  | 12/31/2008           | N/A                        | 7.898                | 13                                                        |   |
|                                  | 12/31/2009           | 7.898                      | 9.380                | 196                                                       |   |
|                                  | 12/31/2010           | 9.380                      | 10.112               | 229                                                       |   |
|                                  | 12/31/2011           | 10.112                     | 9.570                | 214                                                       |   |
|                                  | 12/31/2012           | 9.570                      | 10.335               | 214                                                       |   |
| ALE 4  1.95%                |                 |                       |                 |                                                      |   |
|                                  | 12/31/2008           | N/A                        | 7.890                | 1                                                         |   |
|                                  | 12/31/2009           | 7.890                      | 9.356                | 5                                                         |   |
|                                  | 12/31/2010           | 9.356                      | 10.071               | 8                                                         |   |
|                                  | 12/31/2011           | 10.071                     | 9.518                | 17                                                        |   |
|                                  | 12/31/2012           | 9.518                      | 10.263               | 14                                                        |   |
| ALE 5  2.40%                |                 |                       |                 |                                                      |   |
|                                  | 12/31/2008           | N/A                        | 7.866                | 784                                                       |   |
|                                  | 12/31/2009           | 7.866                      | 9.286                | 1529                                                      |   |
|                                  | 12/31/2010           | 9.286                      | 9.951                | 1972                                                      |   |
|                                  | 12/31/2011           | 9.951                      | 9.362                | 2915                                                      |   |
|                                  | 12/31/2012           | 9.362                      | 10.049               | 2832                                                      |   |
| ALO 1  1.70%                |                 |                       |                 |                                                      |   |
|                                  | 12/31/2008           | N/A                        | 7.903                | 193                                                       |   |
|                                  | 12/31/2009           | 7.903                      | 9.396                | 415                                                       |   |
|                                  | 12/31/2010           | 9.396                      | 10.139               | 463                                                       |   |
|                                  | 12/31/2011           | 10.139                     | 9.605                | 661                                                       |   |
|                                  | 12/31/2012           | 9.605                      | 10.384               | 614                                                       |   |

----

| Benefit Option *                        | Period or Year Ended | AUV at Beginning of Period | AUV at End of Period | Number of Accumulation Units Outstanding at End of Period |
|-----------------------------------------|----------------------|----------------------------|----------------------|-----------------------------------------------------------|
| ALO 2  1.90%                  |                 |
|                                    | 12/31/2008           | N/A                        | 7.893                | 14                                                        |   |
|                                    | 12/31/2009           | 7.893                      | 9.364                | 35                                                        |   |
|                                    | 12/31/2010           | 9.364                      | 10.085               | 45                                                        |   |
|                                    | 12/31/2011           | 10.085                     | 9.535                | 35                                                        |   |
|                                    | 12/31/2012           | 9.535                      | 10.287               | 38                                                        |   |
| ALO 3  1.80%                  |                 |                       |                 |                                                      |   |
|                                    | 12/31/2008           | N/A                        | 7.898                | 10                                                        |   |
|                                    | 12/31/2009           | 7.898                      | 9.380                | 15                                                        |   |
|                                    | 12/31/2010           | 9.380                      | 10.112               | 14                                                        |   |
|                                    | 12/31/2011           | 10.112                     | 9.570                | 14                                                        |   |
|                                    | 12/31/2012           | 9.570                      | 10.335               | 15                                                        |   |
| ALO 4  2.00%                  |                 |                       |                 |                                                      |   |
|                                    | 12/31/2008           | N/A                        | 7.888                | 0                                                         |   |
|                                    | 12/31/2009           | 7.888                      | 9.349                | 0                                                         |   |
|                                    | 12/31/2010           | 9.349                      | 10.058               | 0                                                         |   |
|                                    | 12/31/2011           | 10.058                     | 9.500                | 9                                                         |   |
|                                    | 12/31/2012           | 9.500                      | 10.239               | 0                                                         |   |
| ALT 1  1.40%                  |                 |                       |                 |                                                      |   |
|                                    | 12/31/2008           | N/A                        | 7.919                | 24                                                        |   |
|                                    | 12/31/2009           | 7.919                      | 9.443                | 34                                                        |   |
|                                    | 12/31/2010           | 9.443                      | 10.220               | 83                                                        |   |
|                                    | 12/31/2011           | 10.220                     | 9.712                | 74                                                        |   |
|                                    | 12/31/2012           | 9.712                      | 10.530               | 57                                                        |   |
| ALT 2  1.60%                  |                 |                       |                 |                                                      |   |
|                                    | 12/31/2008           | N/A                        | 7.909                | 1                                                         |   |
|                                    | 12/31/2009           | 7.909                      | 9.411                | 0                                                         |   |
|                                    | 12/31/2010           | 9.411                      | 10.166               | 0                                                         |   |
|                                    | 12/31/2011           | 10.166                     | 9.641                | 6                                                         |   |
|                                    | 12/31/2012           | 9.641                      | 10.432               | 4                                                         |   |
| ALT 4  1.70%                  |                 |                       |                 |                                                      |   |
|                                    | 12/31/2008           | N/A                        | 7.903                | 2                                                         |   |
|                                    | 12/31/2009           | 7.903                      | 9.396                | 23                                                        |   |
|                                    | 12/31/2010           | 9.396                      | 10.139               | 33                                                        |   |
|                                    | 12/31/2011           | 10.139                     | 9.605                | 54                                                        |   |
|                                    | 12/31/2012           | 9.605                      | 10.384               | 57                                                        |   |
| ALT 5  2.20%                  |                 |                       |                 |                                                      |   |
|                                    | 12/31/2008           | N/A                        | 7.877                | 584                                                       |   |
|                                    | 12/31/2009           | 7.877                      | 9.317                | 1401                                                      |   |
|                                    | 12/31/2010           | 9.317                      | 10.004               | 2113                                                      |   |
|                                    | 12/31/2011           | 10.004                     | 9.431                | 2843                                                      |   |
|                                    | 12/31/2012           | 9.431                      | 10.144               | 2867                                                      |   |
| Fidelity VIP FundsManager 50% Portfolio |                 |
| ALE 1  1.90%                  |                 |                       |                 |                                                      |   |
|                                    | 12/31/2011           | N/A                        | 10.476               | 5                                                         |   |
|                                    | 12/31/2012           | 10.476                     | 11.318               | 9                                                         |   |
| ALE 3  1.80%                  |                 |                       |                 |                                                      |   |
|                                    | 12/31/2011           | N/A                        | 10.536               | 0                                                         |   |
|                                    | 12/31/2012           | 10.536                     | 11.395               | 0                                                         |   |
| ALE 4  1.95%                  |                 |                       |                 |                                                      |   |
|                                    | 12/31/2011           | N/A                        | 10.446               | 0                                                         |   |
|                                    | 12/31/2012           | 10.446                     | 11.280               | 0                                                         |   |
| ALE 5  2.40%                  |                 |                       |                 |                                                      |   |
|                                    | 12/31/2011           | N/A                        | 10.181               | 6                                                         |   |
|                                    | 12/31/2012           | 10.181                     | 10.944               | 34                                                        |   |
| ALO 1  1.70%                  |                 |                       |                 |                                                      |   |
|                                    | 12/31/2011           | N/A                        | 10.596               | 0                                                         |   |
|                                    | 12/31/2012           | 10.596                     | 11.472               | 8                                                         |   |
| ALO 2  1.90%                  |                 |
|                                    | 12/31/2011           | N/A                        | 10.476               | 1                                                         |   |
|                                    | 12/31/2012           | 10.476                     | 11.318               | 2                                                         |   |
| ALO 3  1.80%                  |                 |                       |                 |                                                      |   |
|                                    | 12/31/2011           | N/A                        | 10.536               | 0                                                         |   |
|                                    | 12/31/2012           | 10.536                     | 11.395               | 0                                                         |   |
| ALO 4  2.00%                  |                 |                       |                 |                                                      |   |
|                                    | 12/31/2011           | N/A                        | 10.416               | 0                                                         |   |
|                                    | 12/31/2012           | 10.416                     | 11.242               | 0                                                         |   |
| ALT 1  1.40%                  |                 |                       |                 |                                                      |   |
|                                    | 12/31/2011           | N/A                        | 10.780               | 4                                                         |   |
|                                    | 12/31/2012           | 10.780                     | 11.705               | 4                                                         |   |
| ALT 2  1.60%                  |                 |                       |                 |                                                      |   |
|                                    | 12/31/2011           | N/A                        | 10.657               | 0                                                         |   |
|                                    | 12/31/2012           | 10.657                     | 11.549               | 0                                                         |   |
| ALT 4  1.70%                  |                 |                       |                 |                                                      |   |
|                                    | 12/31/2011           | N/A                        | 10.596               | 0                                                         |   |
|                                    | 12/31/2012           | 10.596                     | 11.472               | 3                                                         |   |
| ALT 5  2.20%                  |                 |                       |                 |                                                      |   |
|                                    | 12/31/2011           | N/A                        | 10.298               | 3                                                         |   |
|                                    | 12/31/2012           | 10.298                     | 11.092               | 24                                                        |   |
| Fidelity VIP FundsManager 60% Portfolio |                 |
| ALE 1  1.90%                  |                 |                       |                 |                                                      |   |
|                                    | 12/31/2011           | N/A                        | 9.482                | 11                                                        |   |
|                                    | 12/31/2012           | 9.482                      | 10.369               | 53                                                        |   |
| ALE 3  1.80%                  |                 |                       |                 |                                                      |   |
|                                    | 12/31/2011           | N/A                        | 9.523                | 0                                                         |   |
|                                    | 12/31/2012           | 9.523                      | 10.425               | 0                                                         |   |
| ALE 4  1.95%                  |                 |                       |                 |                                                      |   |
|                                    | 12/31/2011           | N/A                        | 9.461                | 0                                                         |   |
|                                    | 12/31/2012           | 9.461                      | 10.341               | 0                                                         |   |
| ALE 5  2.40%                  |                 |                       |                 |                                                      |   |
|                                    | 12/31/2011           | N/A                        | 9.277                | 56                                                        |   |
|                                    | 12/31/2012           | 9.277                      | 10.094               | 100                                                       |   |
| ALO 1  1.70%                  |                 |                       |                 |                                                      |   |
|                                    | 12/31/2011           | N/A                        | 9.565                | 14                                                        |   |
|                                    | 12/31/2012           | 9.565                      | 10.481               | 11                                                        |   |
| ALO 2  1.90%                  |                 |                       |                 |                                                      |   |
|                                    | 12/31/2011           | N/A                        | 9.482                | 0                                                         |   |
|                                    | 12/31/2012           | 9.482                      | 10.369               | 0                                                         |   |
| ALO 3  1.80%                  |                 |                       |                 |                                                      |   |
|                                    | 12/31/2011           | N/A                        | 9.523                | 0                                                         |   |
|                                    | 12/31/2012           | 9.523                      | 10.425               | 0                                                         |   |
| ALO 4  2.00%                  |                 |                       |                 |                                                      |   |
|                                    | 12/31/2011           | N/A                        | 9.440                | 0                                                         |   |
|                                    | 12/31/2012           | 9.440                      | 10.313               | 0                                                         |   |
| ALT 1  1.40%                  |                 |                       |                 |                                                      |   |
|                                    | 12/31/2011           | N/A                        | 9.691                | 0                                                         |   |
|                                    | 12/31/2012           | 9.691                      | 10.651               | 0                                                         |   |
| ALT 2  1.60%                  |                 |                       |                 |                                                      |   |
|                                    | 12/31/2011           | N/A                        | 9.606                | 0                                                         |   |
|                                    | 12/31/2012           | 9.606                      | 10.537               | 0                                                         |   |
| ALT 4  1.70%                  |                 |                       |                 |                                                      |   |
|                                    | 12/31/2011           | N/A                        | 9.565                | 0                                                         |   |
|                                    | 12/31/2012           | 9.565                      | 10.481               | 0                                                         |   |
| ALT 5  2.20%                  |                 |                       |                 |                                                      |   |
|                                    | 12/31/2011           | N/A                        | 9.358                | 95                                                        |   |
|                                    | 12/31/2012           | 9.358                      | 10.203               | 156                                                       |   |
|                                    |                 |                       |                 |                                                      |   |

----

| Benefit Option *                     | Period or Year Ended | AUV at Beginning of Period | AUV at End of Period | Number of Accumulation Units Outstanding at End of Period |
|--------------------------------------|----------------------|----------------------------|----------------------|-----------------------------------------------------------|
| Franklin High Income Securities Fund |                 |
| ALE 1  1.90%               |                 |                       |                 |                                                      |   |
|                                 | 12/31/2003           | N/A                        | 19.556               | 382                                                       |   |
|                                 | 12/31/2004           | 19.556                     | 21.082               | 366                                                       |   |
|                                 | 12/31/2005           | 21.082                     | 21.372               | 329                                                       |   |
|                                 | 12/31/2006           | 21.372                     | 22.934               | 375                                                       |   |
|                                 | 12/31/2007           | 22.934                     | 23.111               | 296                                                       |   |
|                                 | 12/31/2008           | 23.111                     | 17.374               | 212                                                       |   |
|                                 | 12/31/2009           | 17.374                     | 24.325               | 258                                                       |   |
|                                 | 12/31/2010           | 24.325                     | 27.032               | 214                                                       |   |
|                                 | 12/31/2011           | 27.032                     | 27.734               | 171                                                       |   |
|                                 | 12/31/2012           | 27.734                     | 31.443               | 161                                                       |   |
| ALE 3  1.80%               |                 |                       |                 |                                                      |   |
|                                 | 12/31/2003           | N/A                        | 19.848               | 5                                                         |   |
|                                 | 12/31/2004           | 19.848                     | 21.417               | 9                                                         |   |
|                                 | 12/31/2005           | 21.417                     | 21.733               | 17                                                        |   |
|                                 | 12/31/2006           | 21.733                     | 23.346               | 18                                                        |   |
|                                 | 12/31/2007           | 23.346                     | 23.549               | 20                                                        |   |
|                                 | 12/31/2008           | 23.549                     | 17.721               | 22                                                        |   |
|                                 | 12/31/2009           | 17.721                     | 24.836               | 20                                                        |   |
|                                 | 12/31/2010           | 24.836                     | 27.627               | 18                                                        |   |
|                                 | 12/31/2011           | 27.627                     | 28.373               | 15                                                        |   |
|                                 | 12/31/2012           | 28.373                     | 32.200               | 9                                                         |   |
| ALE 4  1.95%               |                 |                       |                 |                                                      |   |
|                                 | 12/31/2003           | N/A                        | 19.412               | 25                                                        |   |
|                                 | 12/31/2004           | 19.412                     | 20.916               | 9                                                         |   |
|                                 | 12/31/2005           | 20.916                     | 21.193               | 12                                                        |   |
|                                 | 12/31/2006           | 21.193                     | 22.731               | 33                                                        |   |
|                                 | 12/31/2007           | 22.731                     | 22.895               | 14                                                        |   |
|                                 | 12/31/2008           | 22.895                     | 17.203               | 12                                                        |   |
|                                 | 12/31/2009           | 17.203                     | 24.074               | 11                                                        |   |
|                                 | 12/31/2010           | 24.074                     | 26.739               | 11                                                        |   |
|                                 | 12/31/2011           | 26.739                     | 27.420               | 8                                                         |   |
|                                 | 12/31/2012           | 27.420                     | 31.071               | 8                                                         |   |
| ALE 5  2.40%               |                 |                       |                 |                                                      |   |
|                                 | 12/31/2003           | N/A                        | 18.164               | 77                                                        |   |
|                                 | 12/31/2004           | 18.164                     | 19.482               | 310                                                       |   |
|                                 | 12/31/2005           | 19.482                     | 19.652               | 434                                                       |   |
|                                 | 12/31/2006           | 19.652                     | 20.984               | 510                                                       |   |
|                                 | 12/31/2007           | 20.984                     | 21.040               | 534                                                       |   |
|                                 | 12/31/2008           | 21.040                     | 15.738               | 423                                                       |   |
|                                 | 12/31/2009           | 15.738                     | 21.925               | 551                                                       |   |
|                                 | 12/31/2010           | 21.925                     | 24.242               | 542                                                       |   |
|                                 | 12/31/2011           | 24.242                     | 24.748               | 412                                                       |   |
|                                 | 12/31/2012           | 24.748                     | 27.917               | 432                                                       |   |
| ALO 1  1.70%               |                 |                       |                 |                                                      |   |
|                                 | 12/31/2003           | N/A                        | 20.143               | 255                                                       |   |
|                                 | 12/31/2004           | 20.143                     | 21.758               | 231                                                       |   |
|                                 | 12/31/2005           | 21.758                     | 22.101               | 172                                                       |   |
|                                 | 12/31/2006           | 22.101                     | 23.764               | 183                                                       |   |
|                                 | 12/31/2007           | 23.764                     | 23.996               | 148                                                       |   |
|                                 | 12/31/2008           | 23.996                     | 18.075               | 114                                                       |   |
|                                 | 12/31/2009           | 18.075                     | 25.358               | 214                                                       |   |
|                                 | 12/31/2010           | 25.358                     | 28.236               | 222                                                       |   |
|                                 | 12/31/2011           | 28.236                     | 29.027               | 142                                                       |   |
|                                 | 12/31/2012           | 29.027                     | 32.975               | 118                                                       |   |
| ALO 2  1.90%               |                 |
|                                 | 12/31/2003           | N/A                        | 19.556               | 61                                                        |   |
|                                 | 12/31/2004           | 19.556                     | 21.082               | 61                                                        |   |
|                                 | 12/31/2005           | 21.082                     | 21.372               | 47                                                        |   |
|                                 | 12/31/2006           | 21.372                     | 22.934               | 48                                                        |   |
|                                 | 12/31/2007           | 22.934                     | 23.111               | 37                                                        |   |
|                                 | 12/31/2008           | 23.111                     | 17.374               | 28                                                        |   |
|                                 | 12/31/2009           | 17.374                     | 24.325               | 27                                                        |   |
|                                 | 12/31/2010           | 24.325                     | 27.032               | 30                                                        |   |
|                                 | 12/31/2011           | 27.032                     | 27.734               | 22                                                        |   |
|                                 | 12/31/2012           | 27.734                     | 31.443               | 18                                                        |   |
| ALO 3  1.80%               |                 |                       |                 |                                                      |   |
|                                 | 12/31/2003           | N/A                        | 19.848               | 0                                                         |   |
|                                 | 12/31/2004           | 19.848                     | 21.417               | 1                                                         |   |
|                                 | 12/31/2005           | 21.417                     | 21.733               | 1                                                         |   |
|                                 | 12/31/2006           | 21.733                     | 23.346               | 2                                                         |   |
|                                 | 12/31/2007           | 23.346                     | 23.549               | 5                                                         |   |
|                                 | 12/31/2008           | 23.549                     | 17.721               | 4                                                         |   |
|                                 | 12/31/2009           | 17.721                     | 24.836               | 4                                                         |   |
|                                 | 12/31/2010           | 24.836                     | 27.627               | 4                                                         |   |
|                                 | 12/31/2011           | 27.627                     | 28.373               | 3                                                         |   |
|                                 | 12/31/2012           | 28.373                     | 32.200               | 3                                                         |   |
| ALO 4  2.00%               |                 |                       |                 |                                                      |   |
|                                 | 12/31/2003           | N/A                        | 19.270               | 0                                                         |   |
|                                 | 12/31/2004           | 19.270                     | 20.752               | 1                                                         |   |
|                                 | 12/31/2005           | 20.752                     | 21.016               | 1                                                         |   |
|                                 | 12/31/2006           | 21.016                     | 22.530               | 1                                                         |   |
|                                 | 12/31/2007           | 22.530                     | 22.681               | 1                                                         |   |
|                                 | 12/31/2008           | 22.681                     | 17.034               | 0                                                         |   |
|                                 | 12/31/2009           | 17.034                     | 23.825               | 1                                                         |   |
|                                 | 12/31/2010           | 23.825                     | 26.449               | 1                                                         |   |
|                                 | 12/31/2011           | 26.449                     | 27.109               | 2                                                         |   |
|                                 | 12/31/2012           | 27.109                     | 30.704               | 0                                                         |   |
| ALT 1  1.40%               |                 |                       |                 |                                                      |   |
|                                 | 12/31/2003           | N/A                        | 21.056               | 129                                                       |   |
|                                 | 12/31/2004           | 21.056                     | 22.813               | 113                                                       |   |
|                                 | 12/31/2005           | 22.813                     | 23.242               | 81                                                        |   |
|                                 | 12/31/2006           | 23.242                     | 25.066               | 67                                                        |   |
|                                 | 12/31/2007           | 25.066                     | 25.387               | 69                                                        |   |
|                                 | 12/31/2008           | 25.387                     | 19.180               | 23                                                        |   |
|                                 | 12/31/2009           | 19.180                     | 26.989               | 24                                                        |   |
|                                 | 12/31/2010           | 26.989                     | 30.142               | 21                                                        |   |
|                                 | 12/31/2011           | 30.142                     | 31.080               | 18                                                        |   |
|                                 | 12/31/2012           | 31.080                     | 35.414               | 16                                                        |   |
| ALT 2  1.60%               |                 |                       |                 |                                                      |   |
|                                 | 12/31/2003           | N/A                        | 20.443               | 5                                                         |   |
|                                 | 12/31/2004           | 20.443                     | 22.104               | 5                                                         |   |
|                                 | 12/31/2005           | 22.104                     | 22.475               | 5                                                         |   |
|                                 | 12/31/2006           | 22.475                     | 24.190               | 5                                                         |   |
|                                 | 12/31/2007           | 24.190                     | 24.451               | 4                                                         |   |
|                                 | 12/31/2008           | 24.451                     | 18.436               | 4                                                         |   |
|                                 | 12/31/2009           | 18.436                     | 25.890               | 4                                                         |   |
|                                 | 12/31/2010           | 25.890                     | 28.857               | 3                                                         |   |
|                                 | 12/31/2011           | 28.857                     | 29.696               | 3                                                         |   |
|                                 | 12/31/2012           | 29.696                     | 33.769               | 3                                                         |   |

----

| Benefit Option *                | Period or Year Ended | AUV at Beginning of Period | AUV at End of Period | Number of Accumulation Units Outstanding at End of Period |
|---------------------------------|----------------------|----------------------------|----------------------|-----------------------------------------------------------|
| ALT 4  1.70%          |                 |
|                            | 12/31/2003           | N/A                        | 20.143               | 7                                                         |   |
|                            | 12/31/2004           | 20.143                     | 21.758               | 27                                                        |   |
|                            | 12/31/2005           | 21.758                     | 22.101               | 61                                                        |   |
|                            | 12/31/2006           | 22.101                     | 23.764               | 56                                                        |   |
|                            | 12/31/2007           | 23.764                     | 23.996               | 21                                                        |   |
|                            | 12/31/2008           | 23.996                     | 18.075               | 18                                                        |   |
|                            | 12/31/2009           | 18.075                     | 25.358               | 18                                                        |   |
|                            | 12/31/2010           | 25.358                     | 28.236               | 15                                                        |   |
|                            | 12/31/2011           | 28.236                     | 29.027               | 11                                                        |   |
|                            | 12/31/2012           | 29.027                     | 32.975               | 11                                                        |   |
| ALT 5  2.20%          |                 |                       |                 |                                                      |   |
|                            | 12/31/2003           | N/A                        | 18.708               | 82                                                        |   |
|                            | 12/31/2004           | 18.708                     | 20.107               | 270                                                       |   |
|                            | 12/31/2005           | 20.107                     | 20.323               | 345                                                       |   |
|                            | 12/31/2006           | 20.323                     | 21.743               | 407                                                       |   |
|                            | 12/31/2007           | 21.743                     | 21.845               | 457                                                       |   |
|                            | 12/31/2008           | 21.845                     | 16.373               | 503                                                       |   |
|                            | 12/31/2009           | 16.373                     | 22.855               | 565                                                       |   |
|                            | 12/31/2010           | 22.855                     | 25.322               | 539                                                       |   |
|                            | 12/31/2011           | 25.322                     | 25.902               | 465                                                       |   |
|                            | 12/31/2012           | 25.902                     | 29.278               | 481                                                       |   |
| Franklin Income Securities Fund |                 |
| ALE 1  1.90%          |                 |                       |                 |                                                      |   |
|                            | 12/31/2003           | N/A                        | 33.563               | 632                                                       |   |
|                            | 12/31/2004           | 33.563                     | 37.492               | 702                                                       |   |
|                            | 12/31/2005           | 37.492                     | 37.378               | 830                                                       |   |
|                            | 12/31/2006           | 37.378                     | 43.367               | 999                                                       |   |
|                            | 12/31/2007           | 43.367                     | 44.144               | 894                                                       |   |
|                            | 12/31/2008           | 44.144                     | 30.467               | 696                                                       |   |
|                            | 12/31/2009           | 30.467                     | 40.534               | 611                                                       |   |
|                            | 12/31/2010           | 40.534                     | 44.811               | 549                                                       |   |
|                            | 12/31/2011           | 44.811                     | 45.018               | 470                                                       |   |
|                            | 12/31/2012           | 45.018                     | 49.754               | 436                                                       |   |
| ALE 3  1.80%          |                 |                       |                 |                                                      |   |
|                            | 12/31/2003           | N/A                        | 34.063               | 6                                                         |   |
|                            | 12/31/2004           | 34.063                     | 38.088               | 13                                                        |   |
|                            | 12/31/2005           | 38.088                     | 38.011               | 23                                                        |   |
|                            | 12/31/2006           | 38.011                     | 44.144               | 46                                                        |   |
|                            | 12/31/2007           | 44.144                     | 44.981               | 69                                                        |   |
|                            | 12/31/2008           | 44.981                     | 31.076               | 62                                                        |   |
|                            | 12/31/2009           | 31.076                     | 41.385               | 52                                                        |   |
|                            | 12/31/2010           | 41.385                     | 45.798               | 48                                                        |   |
|                            | 12/31/2011           | 45.798                     | 46.055               | 43                                                        |   |
|                            | 12/31/2012           | 46.055                     | 50.952               | 40                                                        |   |
| ALE 4  1.95%          |                 |                       |                 |                                                      |   |
|                            | 12/31/2003           | N/A                        | 33.316               | 0                                                         |   |
|                            | 12/31/2004           | 33.316                     | 37.197               | 5                                                         |   |
|                            | 12/31/2005           | 37.197                     | 37.066               | 12                                                        |   |
|                            | 12/31/2006           | 37.066                     | 42.983               | 20                                                        |   |
|                            | 12/31/2007           | 42.983                     | 43.732               | 20                                                        |   |
|                            | 12/31/2008           | 43.732                     | 30.167               | 12                                                        |   |
|                            | 12/31/2009           | 30.167                     | 40.115               | 13                                                        |   |
|                            | 12/31/2010           | 40.115                     | 44.325               | 12                                                        |   |
|                            | 12/31/2011           | 44.325                     | 44.508               | 9                                                         |   |
|                            | 12/31/2012           | 44.508                     | 49.166               | 8                                                         |   |
| ALE 5  2.40%          |                 |
|                            | 12/31/2003           | N/A                        | 31.173               | 37                                                        |   |
|                            | 12/31/2004           | 31.173                     | 34.648               | 335                                                       |   |
|                            | 12/31/2005           | 34.648                     | 34.371               | 806                                                       |   |
|                            | 12/31/2006           | 34.371                     | 39.679               | 1133                                                      |   |
|                            | 12/31/2007           | 39.679                     | 40.188               | 1483                                                      |   |
|                            | 12/31/2008           | 40.188                     | 27.597               | 1311                                                      |   |
|                            | 12/31/2009           | 27.597                     | 36.533               | 1204                                                      |   |
|                            | 12/31/2010           | 36.533                     | 40.187               | 1101                                                      |   |
|                            | 12/31/2011           | 40.187                     | 40.171               | 1075                                                      |   |
|                            | 12/31/2012           | 40.171                     | 44.175               | 1008                                                      |   |
| ALO 1  1.70%          |                 |                       |                 |                                                      |   |
|                            | 12/31/2003           | N/A                        | 34.570               | 312                                                       |   |
|                            | 12/31/2004           | 34.570                     | 38.694               | 350                                                       |   |
|                            | 12/31/2005           | 38.694                     | 38.654               | 375                                                       |   |
|                            | 12/31/2006           | 38.654                     | 44.936               | 404                                                       |   |
|                            | 12/31/2007           | 44.936                     | 45.834               | 422                                                       |   |
|                            | 12/31/2008           | 45.834                     | 31.696               | 467                                                       |   |
|                            | 12/31/2009           | 31.696                     | 42.254               | 412                                                       |   |
|                            | 12/31/2010           | 42.254                     | 46.806               | 372                                                       |   |
|                            | 12/31/2011           | 46.806                     | 47.116               | 342                                                       |   |
|                            | 12/31/2012           | 47.116                     | 52.178               | 316                                                       |   |
| ALO 2  1.90%          |                 |                       |                 |                                                      |   |
|                            | 12/31/2003           | N/A                        | 33.563               | 81                                                        |   |
|                            | 12/31/2004           | 33.563                     | 37.492               | 93                                                        |   |
|                            | 12/31/2005           | 37.492                     | 37.378               | 93                                                        |   |
|                            | 12/31/2006           | 37.378                     | 43.367               | 107                                                       |   |
|                            | 12/31/2007           | 43.367                     | 44.144               | 104                                                       |   |
|                            | 12/31/2008           | 44.144                     | 30.467               | 102                                                       |   |
|                            | 12/31/2009           | 30.467                     | 40.534               | 89                                                        |   |
|                            | 12/31/2010           | 40.534                     | 44.811               | 83                                                        |   |
|                            | 12/31/2011           | 44.811                     | 45.018               | 72                                                        |   |
|                            | 12/31/2012           | 45.018                     | 49.754               | 69                                                        |   |
| ALO 3  1.80%          |                 |                       |                 |                                                      |   |
|                            | 12/31/2003           | N/A                        | 34.063               | 0                                                         |   |
|                            | 12/31/2004           | 34.063                     | 38.088               | 5                                                         |   |
|                            | 12/31/2005           | 38.088                     | 38.011               | 5                                                         |   |
|                            | 12/31/2006           | 38.011                     | 44.144               | 9                                                         |   |
|                            | 12/31/2007           | 44.144                     | 44.981               | 10                                                        |   |
|                            | 12/31/2008           | 44.981                     | 31.076               | 10                                                        |   |
|                            | 12/31/2009           | 31.076                     | 41.385               | 11                                                        |   |
|                            | 12/31/2010           | 41.385                     | 45.798               | 10                                                        |   |
|                            | 12/31/2011           | 45.798                     | 46.055               | 9                                                         |   |
|                            | 12/31/2012           | 46.055                     | 50.952               | 10                                                        |   |
| ALO 4  2.00%          |                 |                       |                 |                                                      |   |
|                            | 12/31/2003           | N/A                        | 33.071               | 0                                                         |   |
|                            | 12/31/2004           | 33.071                     | 36.905               | 1                                                         |   |
|                            | 12/31/2005           | 36.905                     | 36.757               | 2                                                         |   |
|                            | 12/31/2006           | 36.757                     | 42.603               | 2                                                         |   |
|                            | 12/31/2007           | 42.603                     | 43.323               | 2                                                         |   |
|                            | 12/31/2008           | 43.323                     | 29.870               | 2                                                         |   |
|                            | 12/31/2009           | 29.870                     | 39.700               | 2                                                         |   |
|                            | 12/31/2010           | 39.700                     | 43.845               | 1                                                         |   |
|                            | 12/31/2011           | 43.845                     | 44.004               | 0                                                         |   |
|                            | 12/31/2012           | 44.004                     | 48.585               | 0                                                         |   |

----

| Benefit Option *              | Period or Year Ended | AUV at Beginning of Period | AUV at End of Period | Number of Accumulation Units Outstanding at End of Period |
|-------------------------------|----------------------|----------------------------|----------------------|-----------------------------------------------------------|
| ALT 1  1.40%        |                 |
|                          | 12/31/2003           | N/A                        | 36.137               | 71                                                        |   |
|                          | 12/31/2004           | 36.137                     | 40.570               | 91                                                        |   |
|                          | 12/31/2005           | 40.570                     | 40.649               | 88                                                        |   |
|                          | 12/31/2006           | 40.649                     | 47.397               | 88                                                        |   |
|                          | 12/31/2007           | 47.397                     | 48.490               | 63                                                        |   |
|                          | 12/31/2008           | 48.490                     | 33.635               | 43                                                        |   |
|                          | 12/31/2009           | 33.635                     | 44.972               | 33                                                        |   |
|                          | 12/31/2010           | 44.972                     | 49.967               | 30                                                        |   |
|                          | 12/31/2011           | 49.967                     | 50.449               | 28                                                        |   |
|                          | 12/31/2012           | 50.449                     | 56.037               | 23                                                        |   |
| ALT 2  1.60%        |                 |                       |                 |                                                      |   |
|                          | 12/31/2003           | N/A                        | 35.085               | 4                                                         |   |
|                          | 12/31/2004           | 35.085                     | 39.310               | 2                                                         |   |
|                          | 12/31/2005           | 39.310                     | 39.308               | 1                                                         |   |
|                          | 12/31/2006           | 39.308                     | 45.742               | 3                                                         |   |
|                          | 12/31/2007           | 45.742                     | 46.703               | 2                                                         |   |
|                          | 12/31/2008           | 46.703                     | 32.330               | 2                                                         |   |
|                          | 12/31/2009           | 32.330                     | 43.142               | 2                                                         |   |
|                          | 12/31/2010           | 43.142                     | 47.837               | 2                                                         |   |
|                          | 12/31/2011           | 47.837                     | 48.202               | 1                                                         |   |
|                          | 12/31/2012           | 48.202                     | 53.434               | 1                                                         |   |
| ALT 4  1.70%        |                 |                       |                 |                                                      |   |
|                          | 12/31/2003           | N/A                        | 34.570               | 2                                                         |   |
|                          | 12/31/2004           | 34.570                     | 38.694               | 15                                                        |   |
|                          | 12/31/2005           | 38.694                     | 38.654               | 45                                                        |   |
|                          | 12/31/2006           | 38.654                     | 44.936               | 52                                                        |   |
|                          | 12/31/2007           | 44.936                     | 45.834               | 48                                                        |   |
|                          | 12/31/2008           | 45.834                     | 31.696               | 40                                                        |   |
|                          | 12/31/2009           | 31.696                     | 42.254               | 33                                                        |   |
|                          | 12/31/2010           | 42.254                     | 46.806               | 31                                                        |   |
|                          | 12/31/2011           | 46.806                     | 47.116               | 24                                                        |   |
|                          | 12/31/2012           | 47.116                     | 52.178               | 19                                                        |   |
| ALT 5  2.20%        |                 |                       |                 |                                                      |   |
|                          | 12/31/2003           | N/A                        | 32.108               | 7                                                         |   |
|                          | 12/31/2004           | 32.108                     | 35.759               | 235                                                       |   |
|                          | 12/31/2005           | 35.759                     | 35.544               | 755                                                       |   |
|                          | 12/31/2006           | 35.544                     | 41.115               | 1228                                                      |   |
|                          | 12/31/2007           | 41.115                     | 41.726               | 1633                                                      |   |
|                          | 12/31/2008           | 41.726                     | 28.711               | 1580                                                      |   |
|                          | 12/31/2009           | 28.711                     | 38.084               | 1396                                                      |   |
|                          | 12/31/2010           | 38.084                     | 41.976               | 1312                                                      |   |
|                          | 12/31/2011           | 41.976                     | 42.044               | 1248                                                      |   |
|                          | 12/31/2012           | 42.044                     | 46.327               | 1167                                                      |   |
| Franklin U.S. Government Fund |                 |
| ALE 1  1.90%        |                 |                       |                 |                                                      |   |
|                          | 12/31/2003           | N/A                        | 21.917               | 2450                                                      |   |
|                          | 12/31/2004           | 21.917                     | 22.251               | 2174                                                      |   |
|                          | 12/31/2005           | 22.251                     | 22.358               | 1972                                                      |   |
|                          | 12/31/2006           | 22.358                     | 22.819               | 1736                                                      |   |
|                          | 12/31/2007           | 22.819                     | 23.866               | 1425                                                      |   |
|                          | 12/31/2008           | 23.866                     | 25.193               | 1252                                                      |   |
|                          | 12/31/2009           | 25.193                     | 25.484               | 1076                                                      |   |
|                          | 12/31/2010           | 25.484                     | 26.325               | 947                                                       |   |
|                          | 12/31/2011           | 26.325                     | 27.298               | 768                                                       |   |
|                          | 12/31/2012           | 27.298                     | 27.287               | 663                                                       |   |
| ALE 3  1.80%        |                 |
|                          | 12/31/2003           | N/A                        | 22.178               | 8                                                         |   |
|                          | 12/31/2004           | 22.178                     | 22.538               | 23                                                        |   |
|                          | 12/31/2005           | 22.538                     | 22.669               | 31                                                        |   |
|                          | 12/31/2006           | 22.669                     | 23.160               | 29                                                        |   |
|                          | 12/31/2007           | 23.160                     | 24.248               | 38                                                        |   |
|                          | 12/31/2008           | 24.248                     | 25.621               | 54                                                        |   |
|                          | 12/31/2009           | 25.621                     | 25.943               | 40                                                        |   |
|                          | 12/31/2010           | 25.943                     | 26.826               | 33                                                        |   |
|                          | 12/31/2011           | 26.826                     | 27.845               | 31                                                        |   |
|                          | 12/31/2012           | 27.845                     | 27.862               | 27                                                        |   |
| ALE 4  1.95%        |                 |                       |                 |                                                      |   |
|                          | 12/31/2003           | N/A                        | 21.692               | 2                                                         |   |
|                          | 12/31/2004           | 21.692                     | 22.011               | 10                                                        |   |
|                          | 12/31/2005           | 22.011                     | 22.106               | 11                                                        |   |
|                          | 12/31/2006           | 22.106                     | 22.551               | 12                                                        |   |
|                          | 12/31/2007           | 22.551                     | 23.574               | 12                                                        |   |
|                          | 12/31/2008           | 23.574                     | 24.872               | 17                                                        |   |
|                          | 12/31/2009           | 24.872                     | 25.146               | 14                                                        |   |
|                          | 12/31/2010           | 25.146                     | 25.964               | 10                                                        |   |
|                          | 12/31/2011           | 25.964                     | 26.910               | 10                                                        |   |
|                          | 12/31/2012           | 26.910                     | 26.885               | 13                                                        |   |
| ALE 5  2.40%        |                 |                       |                 |                                                      |   |
|                          | 12/31/2003           | N/A                        | 20.296               | 239                                                       |   |
|                          | 12/31/2004           | 20.296                     | 20.502               | 669                                                       |   |
|                          | 12/31/2005           | 20.502                     | 20.498               | 1012                                                      |   |
|                          | 12/31/2006           | 20.498                     | 20.817               | 1043                                                      |   |
|                          | 12/31/2007           | 20.817                     | 21.664               | 1063                                                      |   |
|                          | 12/31/2008           | 21.664                     | 22.753               | 1253                                                      |   |
|                          | 12/31/2009           | 22.753                     | 22.901               | 1112                                                      |   |
|                          | 12/31/2010           | 22.901                     | 23.539               | 1074                                                      |   |
|                          | 12/31/2011           | 23.539                     | 24.288               | 1003                                                      |   |
|                          | 12/31/2012           | 24.288                     | 24.156               | 872                                                       |   |
| ALO 1  1.70%        |                 |                       |                 |                                                      |   |
|                          | 12/31/2003           | N/A                        | 22.570               | 1127                                                      |   |
|                          | 12/31/2004           | 22.570                     | 22.960               | 997                                                       |   |
|                          | 12/31/2005           | 22.960                     | 23.117               | 968                                                       |   |
|                          | 12/31/2006           | 23.117                     | 23.641               | 861                                                       |   |
|                          | 12/31/2007           | 23.641                     | 24.776               | 646                                                       |   |
|                          | 12/31/2008           | 24.776                     | 26.205               | 528                                                       |   |
|                          | 12/31/2009           | 26.205                     | 26.561               | 555                                                       |   |
|                          | 12/31/2010           | 26.561                     | 27.493               | 438                                                       |   |
|                          | 12/31/2011           | 27.493                     | 28.566               | 369                                                       |   |
|                          | 12/31/2012           | 28.566                     | 28.612               | 266                                                       |   |
| ALO 2  1.90%        |                 |                       |                 |                                                      |   |
|                          | 12/31/2003           | N/A                        | 21.917               | 230                                                       |   |
|                          | 12/31/2004           | 21.917                     | 22.251               | 190                                                       |   |
|                          | 12/31/2005           | 22.251                     | 22.358               | 189                                                       |   |
|                          | 12/31/2006           | 22.358                     | 22.819               | 162                                                       |   |
|                          | 12/31/2007           | 22.819                     | 23.866               | 145                                                       |   |
|                          | 12/31/2008           | 23.866                     | 25.193               | 122                                                       |   |
|                          | 12/31/2009           | 25.193                     | 25.484               | 101                                                       |   |
|                          | 12/31/2010           | 25.484                     | 26.325               | 87                                                        |   |
|                          | 12/31/2011           | 26.325                     | 27.298               | 80                                                        |   |
|                          | 12/31/2012           | 27.298                     | 27.287               | 63                                                        |   |

----

| Benefit Option *              | Period or Year Ended | AUV at Beginning of Period | AUV at End of Period | Number of Accumulation Units Outstanding at End of Period |
|-------------------------------|----------------------|----------------------------|----------------------|-----------------------------------------------------------|
| ALO 3  1.80%        |                 |
|                          | 12/31/2003           | N/A                        | 22.178               | 0                                                         |   |
|                          | 12/31/2004           | 22.178                     | 22.538               | 2                                                         |   |
|                          | 12/31/2005           | 22.538                     | 22.669               | 2                                                         |   |
|                          | 12/31/2006           | 22.669                     | 23.160               | 3                                                         |   |
|                          | 12/31/2007           | 23.160                     | 24.248               | 3                                                         |   |
|                          | 12/31/2008           | 24.248                     | 25.621               | 3                                                         |   |
|                          | 12/31/2009           | 25.621                     | 25.943               | 2                                                         |   |
|                          | 12/31/2010           | 25.943                     | 26.826               | 8                                                         |   |
|                          | 12/31/2011           | 26.826                     | 27.845               | 6                                                         |   |
|                          | 12/31/2012           | 27.845                     | 27.862               | 6                                                         |   |
| ALO 4  2.00%        |                 |                       |                 |                                                      |   |
|                          | 12/31/2003           | N/A                        | 21.532               | 0                                                         |   |
|                          | 12/31/2004           | 21.532                     | 21.838               | 1                                                         |   |
|                          | 12/31/2005           | 21.838                     | 21.921               | 2                                                         |   |
|                          | 12/31/2006           | 21.921                     | 22.351               | 1                                                         |   |
|                          | 12/31/2007           | 22.351                     | 23.354               | 1                                                         |   |
|                          | 12/31/2008           | 23.354                     | 24.627               | 1                                                         |   |
|                          | 12/31/2009           | 24.627                     | 24.886               | 1                                                         |   |
|                          | 12/31/2010           | 24.886                     | 25.682               | 1                                                         |   |
|                          | 12/31/2011           | 25.682                     | 26.605               | 1                                                         |   |
|                          | 12/31/2012           | 26.605                     | 26.567               | 0                                                         |   |
| ALT 1  1.40%        |                 |                       |                 |                                                      |   |
|                          | 12/31/2003           | N/A                        | 23.587               | 391                                                       |   |
|                          | 12/31/2004           | 23.587                     | 24.067               | 320                                                       |   |
|                          | 12/31/2005           | 24.067                     | 24.304               | 291                                                       |   |
|                          | 12/31/2006           | 24.304                     | 24.929               | 234                                                       |   |
|                          | 12/31/2007           | 24.929                     | 26.205               | 172                                                       |   |
|                          | 12/31/2008           | 26.205                     | 27.800               | 161                                                       |   |
|                          | 12/31/2009           | 27.800                     | 28.262               | 136                                                       |   |
|                          | 12/31/2010           | 28.262                     | 29.342               | 97                                                        |   |
|                          | 12/31/2011           | 29.342                     | 30.578               | 78                                                        |   |
|                          | 12/31/2012           | 30.578                     | 30.720               | 59                                                        |   |
| ALT 2  1.60%        |                 |                       |                 |                                                      |   |
|                          | 12/31/2003           | N/A                        | 22.843               | 12                                                        |   |
|                          | 12/31/2004           | 22.843                     | 23.261               | 7                                                         |   |
|                          | 12/31/2005           | 23.261                     | 23.443               | 4                                                         |   |
|                          | 12/31/2006           | 23.443                     | 23.998               | 3                                                         |   |
|                          | 12/31/2007           | 23.998                     | 25.176               | 3                                                         |   |
|                          | 12/31/2008           | 25.176                     | 26.655               | 3                                                         |   |
|                          | 12/31/2009           | 26.655                     | 27.044               | 3                                                         |   |
|                          | 12/31/2010           | 27.044                     | 28.021               | 2                                                         |   |
|                          | 12/31/2011           | 28.021                     | 29.143               | 2                                                         |   |
|                          | 12/31/2012           | 29.143                     | 29.219               | 2                                                         |   |
| ALT 4  1.70%        |                 |                       |                 |                                                      |   |
|                          | 12/31/2003           | N/A                        | 22.508               | 13                                                        |   |
|                          | 12/31/2004           | 22.508                     | 22.897               | 39                                                        |   |
|                          | 12/31/2005           | 22.897                     | 23.053               | 59                                                        |   |
|                          | 12/31/2006           | 23.053                     | 23.576               | 52                                                        |   |
|                          | 12/31/2007           | 23.576                     | 24.707               | 56                                                        |   |
|                          | 12/31/2008           | 24.707                     | 26.133               | 49                                                        |   |
|                          | 12/31/2009           | 26.133                     | 26.488               | 45                                                        |   |
|                          | 12/31/2010           | 26.488                     | 27.417               | 33                                                        |   |
|                          | 12/31/2011           | 27.417                     | 28.487               | 32                                                        |   |
|                          | 12/31/2012           | 28.487                     | 28.533               | 21                                                        |   |
| ALT 5  2.20%        |                 |
|                          | 12/31/2003           | N/A                        | 20.905               | 133                                                       |   |
|                          | 12/31/2004           | 20.905                     | 21.160               | 424                                                       |   |
|                          | 12/31/2005           | 21.160                     | 21.198               | 617                                                       |   |
|                          | 12/31/2006           | 21.198                     | 21.571               | 748                                                       |   |
|                          | 12/31/2007           | 21.571                     | 22.493               | 740                                                       |   |
|                          | 12/31/2008           | 22.493                     | 23.672               | 946                                                       |   |
|                          | 12/31/2009           | 23.672                     | 23.873               | 881                                                       |   |
|                          | 12/31/2010           | 23.873                     | 24.588               | 876                                                       |   |
|                          | 12/31/2011           | 24.588                     | 25.420               | 823                                                       |   |
|                          | 12/31/2012           | 25.420                     | 25.333               | 667                                                       |   |
| PIMCO VIT All Asset Portfolio |                 |
| ALE 1  1.90%        |                 |                       |                 |                                                      |   |
|                          | 12/31/2004           | N/A                        | 11.838               | 388                                                       |   |
|                          | 12/31/2005           | 11.838                     | 12.339               | 740                                                       |   |
|                          | 12/31/2006           | 12.339                     | 12.672               | 607                                                       |   |
|                          | 12/31/2007           | 12.672                     | 13.467               | 530                                                       |   |
|                          | 12/31/2008           | 13.467                     | 11.120               | 492                                                       |   |
|                          | 12/31/2009           | 11.120                     | 13.264               | 358                                                       |   |
|                          | 12/31/2010           | 13.264                     | 14.719               | 402                                                       |   |
|                          | 12/31/2011           | 14.719                     | 14.725               | 391                                                       |   |
|                          | 12/31/2012           | 14.725                     | 16.605               | 480                                                       |   |
| ALE 3  1.80%        |                 |                       |                 |                                                      |   |
|                          | 12/31/2004           | N/A                        | 11.846               | 7                                                         |   |
|                          | 12/31/2005           | 11.846                     | 12.360               | 20                                                        |   |
|                          | 12/31/2006           | 12.360                     | 12.706               | 23                                                        |   |
|                          | 12/31/2007           | 12.706                     | 13.517               | 19                                                        |   |
|                          | 12/31/2008           | 13.517                     | 11.172               | 16                                                        |   |
|                          | 12/31/2009           | 11.172                     | 13.340               | 13                                                        |   |
|                          | 12/31/2010           | 13.340                     | 14.817               | 11                                                        |   |
|                          | 12/31/2011           | 14.817                     | 14.838               | 15                                                        |   |
|                          | 12/31/2012           | 14.838                     | 16.750               | 15                                                        |   |
| ALE 4  1.95%        |                 |                       |                 |                                                      |   |
|                          | 12/31/2004           | N/A                        | 11.834               | 7                                                         |   |
|                          | 12/31/2005           | 11.834                     | 12.329               | 19                                                        |   |
|                          | 12/31/2006           | 12.329                     | 12.655               | 15                                                        |   |
|                          | 12/31/2007           | 12.655                     | 13.443               | 11                                                        |   |
|                          | 12/31/2008           | 13.443                     | 11.094               | 10                                                        |   |
|                          | 12/31/2009           | 11.094                     | 13.227               | 8                                                         |   |
|                          | 12/31/2010           | 13.227                     | 14.669               | 9                                                         |   |
|                          | 12/31/2011           | 14.669                     | 14.668               | 9                                                         |   |
|                          | 12/31/2012           | 14.668                     | 16.533               | 6                                                         |   |
| ALE 5  2.40%        |                 |                       |                 |                                                      |   |
|                          | 12/31/2004           | N/A                        | 11.798               | 548                                                       |   |
|                          | 12/31/2005           | 11.798                     | 12.237               | 1037                                                      |   |
|                          | 12/31/2006           | 12.237                     | 12.504               | 960                                                       |   |
|                          | 12/31/2007           | 12.504                     | 13.222               | 889                                                       |   |
|                          | 12/31/2008           | 13.222                     | 10.863               | 910                                                       |   |
|                          | 12/31/2009           | 10.863                     | 12.893               | 849                                                       |   |
|                          | 12/31/2010           | 12.893                     | 14.235               | 1129                                                      |   |
|                          | 12/31/2011           | 14.235                     | 14.170               | 1074                                                      |   |
|                          | 12/31/2012           | 14.170                     | 15.900               | 1228                                                      |   |

----

| Benefit Option *                          | Period or Year Ended | AUV at Beginning of Period | AUV at End of Period | Number of Accumulation Units Outstanding at End of Period |
|-------------------------------------------|----------------------|----------------------------|----------------------|-----------------------------------------------------------|
| ALO 1  1.70%                    |                 |
|                                      | 12/31/2004           | N/A                        | 11.854               | 177                                                       |   |
|                                      | 12/31/2005           | 11.854                     | 12.381               | 437                                                       |   |
|                                      | 12/31/2006           | 12.381                     | 12.740               | 305                                                       |   |
|                                      | 12/31/2007           | 12.740                     | 13.567               | 250                                                       |   |
|                                      | 12/31/2008           | 13.567                     | 11.224               | 199                                                       |   |
|                                      | 12/31/2009           | 11.224                     | 13.416               | 205                                                       |   |
|                                      | 12/31/2010           | 13.416                     | 14.916               | 281                                                       |   |
|                                      | 12/31/2011           | 14.916                     | 14.952               | 419                                                       |   |
|                                      | 12/31/2012           | 14.952                     | 16.896               | 470                                                       |   |
| ALO 2  1.90%                    |                 |                       |                 |                                                      |   |
|                                      | 12/31/2004           | N/A                        | 11.838               | 31                                                        |   |
|                                      | 12/31/2005           | 11.838                     | 12.339               | 30                                                        |   |
|                                      | 12/31/2006           | 12.339                     | 12.672               | 32                                                        |   |
|                                      | 12/31/2007           | 12.672                     | 13.467               | 22                                                        |   |
|                                      | 12/31/2008           | 13.467                     | 11.120               | 35                                                        |   |
|                                      | 12/31/2009           | 11.120                     | 13.264               | 28                                                        |   |
|                                      | 12/31/2010           | 13.264                     | 14.719               | 35                                                        |   |
|                                      | 12/31/2011           | 14.719                     | 14.725               | 42                                                        |   |
|                                      | 12/31/2012           | 14.725                     | 16.605               | 37                                                        |   |
| ALO 3  1.80%                    |                 |                       |                 |                                                      |   |
|                                      | 12/31/2004           | N/A                        | 11.846               | 1                                                         |   |
|                                      | 12/31/2005           | 11.846                     | 12.360               | 2                                                         |   |
|                                      | 12/31/2006           | 12.360                     | 12.706               | 1                                                         |   |
|                                      | 12/31/2007           | 12.706                     | 13.517               | 1                                                         |   |
|                                      | 12/31/2008           | 13.517                     | 11.172               | 2                                                         |   |
|                                      | 12/31/2009           | 11.172                     | 13.340               | 2                                                         |   |
|                                      | 12/31/2010           | 13.340                     | 14.817               | 2                                                         |   |
|                                      | 12/31/2011           | 14.817                     | 14.838               | 2                                                         |   |
|                                      | 12/31/2012           | 14.838                     | 16.750               | 1                                                         |   |
| ALO 4  2.00%                    |                 |                       |                 |                                                      |   |
|                                      | 12/31/2004           | N/A                        | 11.830               | 0                                                         |   |
|                                      | 12/31/2005           | 11.830                     | 12.319               | 0                                                         |   |
|                                      | 12/31/2006           | 12.319                     | 12.638               | 0                                                         |   |
|                                      | 12/31/2007           | 12.638                     | 13.418               | 0                                                         |   |
|                                      | 12/31/2008           | 13.418                     | 11.068               | 0                                                         |   |
|                                      | 12/31/2009           | 11.068                     | 13.189               | 0                                                         |   |
|                                      | 12/31/2010           | 13.189                     | 14.621               | 0                                                         |   |
|                                      | 12/31/2011           | 14.621                     | 14.612               | 0                                                         |   |
|                                      | 12/31/2012           | 14.612                     | 16.461               | 0                                                         |   |
| ALT 1  1.40%                    |                 |                       |                 |                                                      |   |
|                                      | 12/31/2004           | N/A                        | 11.878               | 18                                                        |   |
|                                      | 12/31/2005           | 11.878                     | 12.443               | 59                                                        |   |
|                                      | 12/31/2006           | 12.443                     | 12.842               | 62                                                        |   |
|                                      | 12/31/2007           | 12.842                     | 13.717               | 29                                                        |   |
|                                      | 12/31/2008           | 13.717                     | 11.383               | 30                                                        |   |
|                                      | 12/31/2009           | 11.383                     | 13.646               | 25                                                        |   |
|                                      | 12/31/2010           | 13.646                     | 15.218               | 38                                                        |   |
|                                      | 12/31/2011           | 15.218                     | 15.300               | 29                                                        |   |
|                                      | 12/31/2012           | 15.300                     | 17.341               | 41                                                        |   |
| ALT 2  1.60%                    |                 |                       |                 |                                                      |
|                                      | 12/31/2004           | N/A                        | 11.862               | 0                                                         |   |
|                                      | 12/31/2005           | 11.862                     | 12.401               | 5                                                         |   |
|                                      | 12/31/2006           | 12.401                     | 12.774               | 4                                                         |   |
|                                      | 12/31/2007           | 12.774                     | 13.617               | 3                                                         |   |
|                                      | 12/31/2008           | 13.617                     | 11.277               | 3                                                         |   |
|                                      | 12/31/2009           | 11.277                     | 13.492               | 3                                                         |   |
|                                      | 12/31/2010           | 13.492                     | 15.016               | 3                                                         |   |
|                                      | 12/31/2011           | 15.016                     | 15.067               | 5                                                         |   |
|                                      | 12/31/2012           | 15.067                     | 17.043               | 4                                                         |   |
| ALT 4  1.70%                    |                 |                       |                 |                                                      |   |
|                                      | 12/31/2004           | N/A                        | 11.854               | 27                                                        |   |
|                                      | 12/31/2005           | 11.854                     | 12.381               | 53                                                        |   |
|                                      | 12/31/2006           | 12.381                     | 12.740               | 37                                                        |   |
|                                      | 12/31/2007           | 12.740                     | 13.567               | 32                                                        |   |
|                                      | 12/31/2008           | 13.567                     | 11.224               | 24                                                        |   |
|                                      | 12/31/2009           | 11.224                     | 13.416               | 21                                                        |   |
|                                      | 12/31/2010           | 13.416                     | 14.916               | 19                                                        |   |
|                                      | 12/31/2011           | 14.916                     | 14.952               | 25                                                        |   |
|                                      | 12/31/2012           | 14.952                     | 16.896               | 23                                                        |   |
| ALT 5  2.20%                    |                 |                       |                 |                                                      |   |
|                                      | 12/31/2004           | N/A                        | 11.814               | 358                                                       |   |
|                                      | 12/31/2005           | 11.814                     | 12.278               | 1099                                                      |   |
|                                      | 12/31/2006           | 12.278                     | 12.571               | 1025                                                      |   |
|                                      | 12/31/2007           | 12.571                     | 13.320               | 926                                                       |   |
|                                      | 12/31/2008           | 13.320                     | 10.965               | 837                                                       |   |
|                                      | 12/31/2009           | 10.965                     | 13.041               | 964                                                       |   |
|                                      | 12/31/2010           | 13.041                     | 14.427               | 1205                                                      |   |
|                                      | 12/31/2011           | 14.427                     | 14.390               | 1384                                                      |   |
|                                      | 12/31/2012           | 14.390                     | 16.178               | 1512                                                      |   |
| PIMCO VIT Emerging Markets Bond Portfolio |                 |
| ALE 1  1.90%                    |                 |                       |                 |                                                      |   |
|                                      | 12/31/2005           | N/A                        | 10.891               | 88                                                        |   |
|                                      | 12/31/2006           | 10.891                     | 11.678               | 178                                                       |   |
|                                      | 12/31/2007           | 11.678                     | 12.124               | 124                                                       |   |
|                                      | 12/31/2008           | 12.124                     | 10.159               | 107                                                       |   |
|                                      | 12/31/2009           | 10.159                     | 13.016               | 148                                                       |   |
|                                      | 12/31/2010           | 13.016                     | 14.326               | 187                                                       |   |
|                                      | 12/31/2011           | 14.326                     | 14.947               | 159                                                       |   |
|                                      | 12/31/2012           | 14.947                     | 17.289               | 193                                                       |   |
| ALE 3  1.80%                    |                 |                       |                 |                                                      |   |
|                                      | 12/31/2005           | N/A                        | 10.898               | 6                                                         |   |
|                                      | 12/31/2006           | 10.898                     | 11.697               | 12                                                        |   |
|                                      | 12/31/2007           | 11.697                     | 12.156               | 10                                                        |   |
|                                      | 12/31/2008           | 12.156                     | 10.196               | 8                                                         |   |
|                                      | 12/31/2009           | 10.196                     | 13.077               | 12                                                        |   |
|                                      | 12/31/2010           | 13.077                     | 14.407               | 11                                                        |   |
|                                      | 12/31/2011           | 14.407                     | 15.047               | 11                                                        |   |
|                                      | 12/31/2012           | 15.047                     | 17.423               | 10                                                        |   |
| ALE 4  1.95%                    |                 |                       |                 |                                                      |   |
|                                      | 12/31/2005           | N/A                        | 10.887               | 4                                                         |   |
|                                      | 12/31/2006           | 10.887                     | 11.668               | 3                                                         |   |
|                                      | 12/31/2007           | 11.668                     | 12.108               | 2                                                         |   |
|                                      | 12/31/2008           | 12.108                     | 10.140               | 1                                                         |   |
|                                      | 12/31/2009           | 10.140                     | 12.986               | 1                                                         |   |
|                                      | 12/31/2010           | 12.986                     | 14.285               | 1                                                         |   |
|                                      | 12/31/2011           | 14.285                     | 14.897               | 0                                                         |   |
|                                      | 12/31/2012           | 14.897                     | 17.223               | 0                                                         |   |

----

| Benefit Option *                                   | Period or Year Ended | AUV at Beginning of Period | AUV at End of Period | Number of Accumulation Units Outstanding at End of Period |
|----------------------------------------------------|----------------------|----------------------------|----------------------|-----------------------------------------------------------|
| ALE 5  2.40%                             |                 |
|                                               | 12/31/2005           | N/A                        | 10.854               | 142                                                       |   |
|                                               | 12/31/2006           | 10.854                     | 11.581               | 227                                                       |   |
|                                               | 12/31/2007           | 11.581                     | 11.963               | 247                                                       |   |
|                                               | 12/31/2008           | 11.963                     | 9.974                | 218                                                       |   |
|                                               | 12/31/2009           | 9.974                      | 12.716               | 271                                                       |   |
|                                               | 12/31/2010           | 12.716                     | 13.925               | 450                                                       |   |
|                                               | 12/31/2011           | 13.925                     | 14.456               | 321                                                       |   |
|                                               | 12/31/2012           | 14.456                     | 16.638               | 336                                                       |   |
| ALO 1  1.70%                             |                 |                       |                 |                                                      |   |
|                                               | 12/31/2005           | N/A                        | 10.905               | 42                                                        |   |
|                                               | 12/31/2006           | 10.905                     | 11.717               | 84                                                        |   |
|                                               | 12/31/2007           | 11.717                     | 12.189               | 86                                                        |   |
|                                               | 12/31/2008           | 12.189                     | 10.234               | 67                                                        |   |
|                                               | 12/31/2009           | 10.234                     | 13.139               | 75                                                        |   |
|                                               | 12/31/2010           | 13.139                     | 14.489               | 96                                                        |   |
|                                               | 12/31/2011           | 14.489                     | 15.148               | 73                                                        |   |
|                                               | 12/31/2012           | 15.148                     | 17.557               | 129                                                       |   |
| ALO 2  1.90%                             |                 |                       |                 |                                                      |   |
|                                               | 12/31/2005           | N/A                        | 10.891               | 9                                                         |   |
|                                               | 12/31/2006           | 10.891                     | 11.678               | 13                                                        |   |
|                                               | 12/31/2007           | 11.678                     | 12.124               | 8                                                         |   |
|                                               | 12/31/2008           | 12.124                     | 10.159               | 21                                                        |   |
|                                               | 12/31/2009           | 10.159                     | 13.016               | 19                                                        |   |
|                                               | 12/31/2010           | 13.016                     | 14.326               | 18                                                        |   |
|                                               | 12/31/2011           | 14.326                     | 14.947               | 14                                                        |   |
|                                               | 12/31/2012           | 14.947                     | 17.289               | 9                                                         |   |
| ALO 3  1.80%                             |                 |                       |                 |                                                      |   |
|                                               | 12/31/2005           | N/A                        | 10.898               | 1                                                         |   |
|                                               | 12/31/2006           | 10.898                     | 11.697               | 0                                                         |   |
|                                               | 12/31/2007           | 11.697                     | 12.156               | 0                                                         |   |
|                                               | 12/31/2008           | 12.156                     | 10.196               | 0                                                         |   |
|                                               | 12/31/2009           | 10.196                     | 13.077               | 0                                                         |   |
|                                               | 12/31/2010           | 13.077                     | 14.407               | 0                                                         |   |
|                                               | 12/31/2011           | 14.407                     | 15.047               | 0                                                         |   |
|                                               | 12/31/2012           | 15.047                     | 17.423               | 0                                                         |   |
| ALO 4  2.00%                             |                 |                       |                 |                                                      |   |
|                                               | 12/31/2005           | N/A                        | 10.884               | 0                                                         |   |
|                                               | 12/31/2006           | 10.884                     | 11.658               | 0                                                         |   |
|                                               | 12/31/2007           | 11.658                     | 12.091               | 0                                                         |   |
|                                               | 12/31/2008           | 12.091                     | 10.122               | 0                                                         |   |
|                                               | 12/31/2009           | 10.122                     | 12.956               | 0                                                         |   |
|                                               | 12/31/2010           | 12.956                     | 14.245               | 0                                                         |   |
|                                               | 12/31/2011           | 14.245                     | 14.847               | 1                                                         |   |
|                                               | 12/31/2012           | 14.847                     | 17.157               | 0                                                         |   |
| ALT 1  1.40%                             |                 |                       |                 |                                                      |   |
|                                               | 12/31/2005           | N/A                        | 10.927               | 1                                                         |   |
|                                               | 12/31/2006           | 10.927                     | 11.776               | 7                                                         |   |
|                                               | 12/31/2007           | 11.776                     | 12.287               | 3                                                         |   |
|                                               | 12/31/2008           | 12.287                     | 10.347               | 3                                                         |   |
|                                               | 12/31/2009           | 10.347                     | 13.324               | 3                                                         |   |
|                                               | 12/31/2010           | 13.324                     | 14.738               | 4                                                         |   |
|                                               | 12/31/2011           | 14.738                     | 15.454               | 4                                                         |   |
|                                               | 12/31/2012           | 15.454                     | 17.966               | 9                                                         |   |
| ALT 2  1.60%                             |                 |
|                                               | 12/31/2005           | N/A                        | 10.913               | 0                                                         |   |
|                                               | 12/31/2006           | 10.913                     | 11.736               | 0                                                         |   |
|                                               | 12/31/2007           | 11.736                     | 12.221               | 2                                                         |   |
|                                               | 12/31/2008           | 12.221                     | 10.272               | 2                                                         |   |
|                                               | 12/31/2009           | 10.272                     | 13.200               | 3                                                         |   |
|                                               | 12/31/2010           | 13.200                     | 14.572               | 0                                                         |   |
|                                               | 12/31/2011           | 14.572                     | 15.249               | 0                                                         |   |
|                                               | 12/31/2012           | 15.249                     | 17.692               | 0                                                         |   |
| ALT 4  1.70%                             |                 |                       |                 |                                                      |   |
|                                               | 12/31/2005           | N/A                        | 10.905               | 2                                                         |   |
|                                               | 12/31/2006           | 10.905                     | 11.717               | 8                                                         |   |
|                                               | 12/31/2007           | 11.717                     | 12.189               | 3                                                         |   |
|                                               | 12/31/2008           | 12.189                     | 10.234               | 3                                                         |   |
|                                               | 12/31/2009           | 10.234                     | 13.139               | 5                                                         |   |
|                                               | 12/31/2010           | 13.139                     | 14.489               | 5                                                         |   |
|                                               | 12/31/2011           | 14.489                     | 15.148               | 5                                                         |   |
|                                               | 12/31/2012           | 15.148                     | 17.557               | 4                                                         |   |
| ALT 5  2.20%                             |                 |                       |                 |                                                      |   |
|                                               | 12/31/2005           | N/A                        | 10.869               | 203                                                       |   |
|                                               | 12/31/2006           | 10.869                     | 11.619               | 351                                                       |   |
|                                               | 12/31/2007           | 11.619                     | 12.027               | 412                                                       |   |
|                                               | 12/31/2008           | 12.027                     | 10.047               | 381                                                       |   |
|                                               | 12/31/2009           | 10.047                     | 12.835               | 513                                                       |   |
|                                               | 12/31/2010           | 12.835                     | 14.084               | 553                                                       |   |
|                                               | 12/31/2011           | 14.084                     | 14.650               | 502                                                       |   |
|                                               | 12/31/2012           | 14.650                     | 16.895               | 510                                                       |   |
| PIMCO VIT Global Advantage Strategy Bond Portfolio |                 |
| ALE 1  1.90%                             |                 |                       |                 |                                                      |   |
|                                               | 12/31/2011           | N/A                        | 9.781                | 11                                                        |   |
|                                               | 12/31/2012           | 9.781                      | 10.190               | 4                                                         |   |
| ALE 3  1.80%                             |                 |                       |                 |                                                      |   |
|                                               | 12/31/2011           | N/A                        | 9.788                | 0                                                         |   |
|                                               | 12/31/2012           | 9.788                      | 10.207               | 2                                                         |   |
| ALE 4  1.95%                             |                 |                       |                 |                                                      |   |
|                                               | 12/31/2011           | N/A                        | 9.778                | 0                                                         |   |
|                                               | 12/31/2012           | 9.778                      | 10.182               | 0                                                         |   |
| ALE 5  2.40%                             |                 |                       |                 |                                                      |   |
|                                               | 12/31/2011           | N/A                        | 9.748                | 18                                                        |   |
|                                               | 12/31/2012           | 9.748                      | 10.105               | 26                                                        |   |
| ALO 1  1.70%                             |                 |                       |                 |                                                      |   |
|                                               | 12/31/2011           | N/A                        | 9.794                | 20                                                        |   |
|                                               | 12/31/2012           | 9.794                      | 10.224               | 36                                                        |   |
| ALO 2  1.90%                             |                 |                       |                 |                                                      |   |
|                                               | 12/31/2011           | N/A                        | 9.781                | 0                                                         |   |
|                                               | 12/31/2012           | 9.781                      | 10.190               | 0                                                         |   |
| ALO 3  1.80%                             |                 |                       |                 |                                                      |   |
|                                               | 12/31/2011           | N/A                        | 9.788                | 0                                                         |   |
|                                               | 12/31/2012           | 9.788                      | 10.207               | 0                                                         |   |
| ALO 4  2.00%                             |                 |                       |                 |                                                      |   |
|                                               | 12/31/2011           | N/A                        | 9.774                | 0                                                         |   |
|                                               | 12/31/2012           | 9.774                      | 10.173               | 0                                                         |   |
| ALT 1  1.40%                             |                 |                       |                 |                                                      |   |
|                                               | 12/31/2011           | N/A                        | 9.814                | 0                                                         |   |
|                                               | 12/31/2012           | 9.814                      | 10.276               | 0                                                         |   |
| ALT 2  1.60%                             |                 |                       |                 |                                                      |   |
|                                               | 12/31/2011           | N/A                        | 9.801                | 1                                                         |   |
|                                               | 12/31/2012           | 9.801                      | 10.241               | 1                                                         |   |

----

| Benefit Option *                          | Period or Year Ended | AUV at Beginning of Period | AUV at End of Period | Number of Accumulation Units Outstanding at End of Period |
|-------------------------------------------|----------------------|----------------------------|----------------------|-----------------------------------------------------------|
| ALT 4  1.70%                    |                 |
|                                      | 12/31/2011           | N/A                        | 9.794                | 0                                                         |   |
|                                      | 12/31/2012           | 9.794                      | 10.224               | 0                                                         |   |
| ALT 5  2.20%                    |                 |                       |                 |                                                      |   |
|                                      | 12/31/2011           | N/A                        | 9.761                | 1                                                         |   |
|                                      | 12/31/2012           | 9.761                      | 10.139               | 8                                                         |   |
| PIMCO VIT Global Bond Portfolio(Unhedged) |                 |
| ALE 1  1.90%                    |                 |                       |                 |                                                      |   |
|                                      | 12/31/2005           | N/A                        | 9.318                | 59                                                        |   |
|                                      | 12/31/2006           | 9.318                      | 9.568                | 109                                                       |   |
|                                      | 12/31/2007           | 9.568                      | 10.302               | 152                                                       |   |
|                                      | 12/31/2008           | 10.302                     | 10.022               | 300                                                       |   |
|                                      | 12/31/2009           | 10.022                     | 11.492               | 290                                                       |   |
|                                      | 12/31/2010           | 11.492                     | 12.590               | 213                                                       |   |
|                                      | 12/31/2011           | 12.590                     | 13.289               | 209                                                       |   |
|                                      | 12/31/2012           | 13.289                     | 13.944               | 184                                                       |   |
| ALE 3  1.80%                    |                 |                       |                 |                                                      |   |
|                                      | 12/31/2005           | N/A                        | 9.324                | 2                                                         |   |
|                                      | 12/31/2006           | 9.324                      | 9.584                | 12                                                        |   |
|                                      | 12/31/2007           | 9.584                      | 10.329               | 8                                                         |   |
|                                      | 12/31/2008           | 10.329                     | 10.059               | 21                                                        |   |
|                                      | 12/31/2009           | 10.059                     | 11.545               | 15                                                        |   |
|                                      | 12/31/2010           | 11.545                     | 12.662               | 17                                                        |   |
|                                      | 12/31/2011           | 12.662                     | 13.378               | 13                                                        |   |
|                                      | 12/31/2012           | 13.378                     | 14.051               | 12                                                        |   |
| ALE 4  1.95%                    |                 |                       |                 |                                                      |   |
|                                      | 12/31/2005           | N/A                        | 9.314                | 1                                                         |   |
|                                      | 12/31/2006           | 9.314                      | 9.560                | 1                                                         |   |
|                                      | 12/31/2007           | 9.560                      | 10.288               | 3                                                         |   |
|                                      | 12/31/2008           | 10.288                     | 10.003               | 9                                                         |   |
|                                      | 12/31/2009           | 10.003                     | 11.465               | 7                                                         |   |
|                                      | 12/31/2010           | 11.465                     | 12.554               | 4                                                         |   |
|                                      | 12/31/2011           | 12.554                     | 13.245               | 3                                                         |   |
|                                      | 12/31/2012           | 13.245                     | 13.890               | 3                                                         |   |
| ALE 5  2.40%                    |                 |                       |                 |                                                      |   |
|                                      | 12/31/2005           | N/A                        | 9.286                | 64                                                        |   |
|                                      | 12/31/2006           | 9.286                      | 9.488                | 167                                                       |   |
|                                      | 12/31/2007           | 9.488                      | 10.165               | 280                                                       |   |
|                                      | 12/31/2008           | 10.165                     | 9.839                | 769                                                       |   |
|                                      | 12/31/2009           | 9.839                      | 11.226               | 652                                                       |   |
|                                      | 12/31/2010           | 11.226                     | 12.237               | 634                                                       |   |
|                                      | 12/31/2011           | 12.237                     | 12.853               | 599                                                       |   |
|                                      | 12/31/2012           | 12.853                     | 13.418               | 478                                                       |   |
| ALO 1  1.70%                    |                 |                       |                 |                                                      |   |
|                                      | 12/31/2005           | N/A                        | 9.330                | 23                                                        |   |
|                                      | 12/31/2006           | 9.330                      | 9.600                | 71                                                        |   |
|                                      | 12/31/2007           | 9.600                      | 10.357               | 114                                                       |   |
|                                      | 12/31/2008           | 10.357                     | 10.096               | 157                                                       |   |
|                                      | 12/31/2009           | 10.096                     | 11.600               | 151                                                       |   |
|                                      | 12/31/2010           | 11.600                     | 12.734               | 90                                                        |   |
|                                      | 12/31/2011           | 12.734                     | 13.468               | 83                                                        |   |
|                                      | 12/31/2012           | 13.468                     | 14.159               | 70                                                        |   |
| ALO 2  1.90%                    |                 |
|                                      | 12/31/2005           | N/A                        | 9.318                | 4                                                         |   |
|                                      | 12/31/2006           | 9.318                      | 9.568                | 2                                                         |   |
|                                      | 12/31/2007           | 9.568                      | 10.302               | 11                                                        |   |
|                                      | 12/31/2008           | 10.302                     | 10.022               | 24                                                        |   |
|                                      | 12/31/2009           | 10.022                     | 11.492               | 13                                                        |   |
|                                      | 12/31/2010           | 11.492                     | 12.590               | 7                                                         |   |
|                                      | 12/31/2011           | 12.590                     | 13.289               | 10                                                        |   |
|                                      | 12/31/2012           | 13.289                     | 13.944               | 8                                                         |   |
| ALO 3  1.80%                    |                 |                       |                 |                                                      |   |
|                                      | 12/31/2005           | N/A                        | 9.324                | 0                                                         |   |
|                                      | 12/31/2006           | 9.324                      | 9.584                | 1                                                         |   |
|                                      | 12/31/2007           | 9.584                      | 10.329               | 6                                                         |   |
|                                      | 12/31/2008           | 10.329                     | 10.059               | 12                                                        |   |
|                                      | 12/31/2009           | 10.059                     | 11.545               | 6                                                         |   |
|                                      | 12/31/2010           | 11.545                     | 12.662               | 6                                                         |   |
|                                      | 12/31/2011           | 12.662                     | 13.378               | 6                                                         |   |
|                                      | 12/31/2012           | 13.378                     | 14.051               | 6                                                         |   |
| ALO 4  2.00%                    |                 |                       |                 |                                                      |   |
|                                      | 12/31/2005           | N/A                        | 9.311                | 0                                                         |   |
|                                      | 12/31/2006           | 9.311                      | 9.552                | 0                                                         |   |
|                                      | 12/31/2007           | 9.552                      | 10.274               | 0                                                         |   |
|                                      | 12/31/2008           | 10.274                     | 9.985                | 0                                                         |   |
|                                      | 12/31/2009           | 9.985                      | 11.438               | 0                                                         |   |
|                                      | 12/31/2010           | 11.438                     | 12.519               | 0                                                         |   |
|                                      | 12/31/2011           | 12.519                     | 13.201               | 0                                                         |   |
|                                      | 12/31/2012           | 13.201                     | 13.837               | 0                                                         |   |
| ALT 1  1.40%                    |                 |                       |                 |                                                      |   |
|                                      | 12/31/2005           | N/A                        | 9.349                | 4                                                         |   |
|                                      | 12/31/2006           | 9.349                      | 9.648                | 9                                                         |   |
|                                      | 12/31/2007           | 9.648                      | 10.440               | 15                                                        |   |
|                                      | 12/31/2008           | 10.440                     | 10.208               | 10                                                        |   |
|                                      | 12/31/2009           | 10.208                     | 11.763               | 5                                                         |   |
|                                      | 12/31/2010           | 11.763                     | 12.952               | 6                                                         |   |
|                                      | 12/31/2011           | 12.952                     | 13.740               | 9                                                         |   |
|                                      | 12/31/2012           | 13.740                     | 14.489               | 9                                                         |   |
| ALT 2  1.60%                    |                 |                       |                 |                                                      |   |
|                                      | 12/31/2005           | N/A                        | 9.336                | 0                                                         |   |
|                                      | 12/31/2006           | 9.336                      | 9.616                | 0                                                         |   |
|                                      | 12/31/2007           | 9.616                      | 10.385               | 1                                                         |   |
|                                      | 12/31/2008           | 10.385                     | 10.133               | 1                                                         |   |
|                                      | 12/31/2009           | 10.133                     | 11.654               | 1                                                         |   |
|                                      | 12/31/2010           | 11.654                     | 12.806               | 0                                                         |   |
|                                      | 12/31/2011           | 12.806                     | 13.558               | 0                                                         |   |
|                                      | 12/31/2012           | 13.558                     | 14.269               | 0                                                         |   |
| ALT 4  1.70%                    |                 |                       |                 |                                                      |   |
|                                      | 12/31/2005           | N/A                        | 9.330                | 2                                                         |   |
|                                      | 12/31/2006           | 9.330                      | 9.600                | 8                                                         |   |
|                                      | 12/31/2007           | 9.600                      | 10.357               | 12                                                        |   |
|                                      | 12/31/2008           | 10.357                     | 10.096               | 12                                                        |   |
|                                      | 12/31/2009           | 10.096                     | 11.600               | 10                                                        |   |
|                                      | 12/31/2010           | 11.600                     | 12.734               | 7                                                         |   |
|                                      | 12/31/2011           | 12.734                     | 13.468               | 5                                                         |   |
|                                      | 12/31/2012           | 13.468                     | 14.159               | 4                                                         |   |

----

| Benefit Option *                       | Period or Year Ended | AUV at Beginning of Period | AUV at End of Period | Number of Accumulation Units Outstanding at End of Period |
|----------------------------------------|----------------------|----------------------------|----------------------|-----------------------------------------------------------|
| ALT 5  2.20%                 |                 |
|                                   | 12/31/2005           | N/A                        | 9.299                | 127                                                       |   |
|                                   | 12/31/2006           | 9.299                      | 9.520                | 298                                                       |   |
|                                   | 12/31/2007           | 9.520                      | 10.219               | 471                                                       |   |
|                                   | 12/31/2008           | 10.219                     | 9.912                | 690                                                       |   |
|                                   | 12/31/2009           | 9.912                      | 11.331               | 629                                                       |   |
|                                   | 12/31/2010           | 11.331                     | 12.377               | 611                                                       |   |
|                                   | 12/31/2011           | 12.377                     | 13.026               | 596                                                       |   |
|                                   | 12/31/2012           | 13.026                     | 13.626               | 488                                                       |   |
| PIMCO VIT Global Multi-Asset Portfolio |                 |
| ALE 1  1.90%                 |                 |                       |                 |                                                      |   |
|                                   | 12/31/2009           | N/A                        | 10.001               | 1                                                         |   |
|                                   | 12/31/2010           | 10.001                     | 10.927               | 126                                                       |   |
|                                   | 12/31/2011           | 10.927                     | 10.536               | 232                                                       |   |
|                                   | 12/31/2012           | 10.536                     | 11.254               | 222                                                       |   |
| ALE 3  1.80%                 |                 |                       |                 |                                                      |   |
|                                   | 12/31/2009           | N/A                        | 10.003               | 0                                                         |   |
|                                   | 12/31/2010           | 10.003                     | 10.940               | 0                                                         |   |
|                                   | 12/31/2011           | 10.940                     | 10.559               | 3                                                         |   |
|                                   | 12/31/2012           | 10.559                     | 11.290               | 3                                                         |   |
| ALE 4  1.95%                 |                 |                       |                 |                                                      |   |
|                                   | 12/31/2009           | N/A                        | 10.000               | 0                                                         |   |
|                                   | 12/31/2010           | 10.000                     | 10.921               | 3                                                         |   |
|                                   | 12/31/2011           | 10.921                     | 10.524               | 4                                                         |   |
|                                   | 12/31/2012           | 10.524                     | 11.236               | 3                                                         |   |
| ALE 5  2.40%                 |                 |                       |                 |                                                      |   |
|                                   | 12/31/2009           | N/A                        | 9.991                | 157                                                       |   |
|                                   | 12/31/2010           | 9.991                      | 10.862               | 364                                                       |   |
|                                   | 12/31/2011           | 10.862                     | 10.421               | 608                                                       |   |
|                                   | 12/31/2012           | 10.421                     | 11.075               | 465                                                       |   |
| ALO 1  1.70%                 |                 |                       |                 |                                                      |   |
|                                   | 12/31/2009           | N/A                        | 10.005               | 10                                                        |   |
|                                   | 12/31/2010           | 10.005                     | 10.953               | 148                                                       |   |
|                                   | 12/31/2011           | 10.953                     | 10.582               | 164                                                       |   |
|                                   | 12/31/2012           | 10.582                     | 11.326               | 127                                                       |   |
| ALO 2  1.90%                 |                 |                       |                 |                                                      |   |
|                                   | 12/31/2009           | N/A                        | 10.001               | 0                                                         |   |
|                                   | 12/31/2010           | 10.001                     | 10.927               | 3                                                         |   |
|                                   | 12/31/2011           | 10.927                     | 10.536               | 4                                                         |   |
|                                   | 12/31/2012           | 10.536                     | 11.254               | 4                                                         |   |
| ALO 3  1.80%                 |                 |                       |                 |                                                      |   |
|                                   | 12/31/2009           | N/A                        | 10.003               | 0                                                         |   |
|                                   | 12/31/2010           | 10.003                     | 10.940               | 2                                                         |   |
|                                   | 12/31/2011           | 10.940                     | 10.559               | 2                                                         |   |
|                                   | 12/31/2012           | 10.559                     | 11.290               | 0                                                         |   |
| ALO 4  2.00%                 |                 |                       |                 |                                                      |   |
|                                   | 12/31/2009           | N/A                        | 9.999                | 0                                                         |   |
|                                   | 12/31/2010           | 9.999                      | 10.914               | 0                                                         |   |
|                                   | 12/31/2011           | 10.914                     | 10.513               | 0                                                         |   |
|                                   | 12/31/2012           | 10.513                     | 11.218               | 0                                                         |   |
| ALT 1  1.40%                 |                 |                       |                 |                                                      |   |
|                                   | 12/31/2009           | N/A                        | 10.011               | 0                                                         |   |
|                                   | 12/31/2010           | 10.011                     | 10.992               | 7                                                         |   |
|                                   | 12/31/2011           | 10.992                     | 10.652               | 26                                                        |   |
|                                   | 12/31/2012           | 10.652                     | 11.435               | 11                                                        |   |
| ALT 2  1.60%                 |                 |
|                                   | 12/31/2009           | N/A                        | 10.007               | 0                                                         |   |
|                                   | 12/31/2010           | 10.007                     | 10.966               | 0                                                         |   |
|                                   | 12/31/2011           | 10.966                     | 10.605               | 0                                                         |   |
|                                   | 12/31/2012           | 10.605                     | 11.362               | 0                                                         |   |
| ALT 4  1.70%                 |                 |                       |                 |                                                      |   |
|                                   | 12/31/2009           | N/A                        | 10.005               | 0                                                         |   |
|                                   | 12/31/2010           | 10.005                     | 10.953               | 4                                                         |   |
|                                   | 12/31/2011           | 10.953                     | 10.582               | 13                                                        |   |
|                                   | 12/31/2012           | 10.582                     | 11.326               | 12                                                        |   |
| ALT 5  2.20%                 |                 |                       |                 |                                                      |   |
|                                   | 12/31/2009           | N/A                        | 9.995                | 43                                                        |   |
|                                   | 12/31/2010           | 9.995                      | 10.888               | 436                                                       |   |
|                                   | 12/31/2011           | 10.888                     | 10.467               | 732                                                       |   |
|                                   | 12/31/2012           | 10.467                     | 11.146               | 665                                                       |   |
| PIMCO VIT High Yield Portfolio         |                 |
| ALE 1  1.90%                 |                 |                       |                 |                                                      |   |
|                                   | 12/31/2003           | N/A                        | 11.092               | 2061                                                      |   |
|                                   | 12/31/2004           | 11.092                     | 11.923               | 1881                                                      |   |
|                                   | 12/31/2005           | 11.923                     | 12.182               | 1769                                                      |   |
|                                   | 12/31/2006           | 12.182                     | 13.042               | 1483                                                      |   |
|                                   | 12/31/2007           | 13.042                     | 13.244               | 1250                                                      |   |
|                                   | 12/31/2008           | 13.244                     | 9.935                | 852                                                       |   |
|                                   | 12/31/2009           | 9.935                      | 13.690               | 809                                                       |   |
|                                   | 12/31/2010           | 13.690                     | 15.380               | 770                                                       |   |
|                                   | 12/31/2011           | 15.380                     | 15.599               | 616                                                       |   |
|                                   | 12/31/2012           | 15.599                     | 17.497               | 564                                                       |   |
| ALE 3  1.80%                 |                 |                       |                 |                                                      |   |
|                                   | 12/31/2003           | N/A                        | 11.135               | 12                                                        |   |
|                                   | 12/31/2004           | 11.135                     | 11.982               | 32                                                        |   |
|                                   | 12/31/2005           | 11.982                     | 12.254               | 36                                                        |   |
|                                   | 12/31/2006           | 12.254                     | 13.132               | 42                                                        |   |
|                                   | 12/31/2007           | 13.132                     | 13.349               | 33                                                        |   |
|                                   | 12/31/2008           | 13.349                     | 10.024               | 27                                                        |   |
|                                   | 12/31/2009           | 10.024                     | 13.826               | 32                                                        |   |
|                                   | 12/31/2010           | 13.826                     | 15.549               | 36                                                        |   |
|                                   | 12/31/2011           | 15.549                     | 15.786               | 25                                                        |   |
|                                   | 12/31/2012           | 15.786                     | 17.725               | 24                                                        |   |
| ALE 4  1.95%                 |                 |                       |                 |                                                      |   |
|                                   | 12/31/2003           | N/A                        | 11.070               | 3                                                         |   |
|                                   | 12/31/2004           | 11.070                     | 11.894               | 9                                                         |   |
|                                   | 12/31/2005           | 11.894                     | 12.146               | 14                                                        |   |
|                                   | 12/31/2006           | 12.146                     | 12.997               | 15                                                        |   |
|                                   | 12/31/2007           | 12.997                     | 13.192               | 9                                                         |   |
|                                   | 12/31/2008           | 13.192                     | 9.891                | 23                                                        |   |
|                                   | 12/31/2009           | 9.891                      | 13.622               | 33                                                        |   |
|                                   | 12/31/2010           | 13.622                     | 15.296               | 19                                                        |   |
|                                   | 12/31/2011           | 15.296                     | 15.506               | 15                                                        |   |
|                                   | 12/31/2012           | 15.506                     | 17.384               | 15                                                        |   |

----

| Benefit Option *                | Period or Year Ended | AUV at Beginning of Period | AUV at End of Period | Number of Accumulation Units Outstanding at End of Period |
|---------------------------------|----------------------|----------------------------|----------------------|-----------------------------------------------------------|
| ALE 5  2.40%          |                 |
|                            | 12/31/2003           | N/A                        | 10.876               | 276                                                       |   |
|                            | 12/31/2004           | 10.876                     | 11.633               | 708                                                       |   |
|                            | 12/31/2005           | 11.633                     | 11.827               | 972                                                       |   |
|                            | 12/31/2006           | 11.827                     | 12.598               | 987                                                       |   |
|                            | 12/31/2007           | 12.598                     | 12.730               | 911                                                       |   |
|                            | 12/31/2008           | 12.730                     | 9.502                | 834                                                       |   |
|                            | 12/31/2009           | 9.502                      | 13.027               | 927                                                       |   |
|                            | 12/31/2010           | 13.027                     | 14.563               | 1042                                                      |   |
|                            | 12/31/2011           | 14.563                     | 14.696               | 851                                                       |   |
|                            | 12/31/2012           | 14.696                     | 16.402               | 744                                                       |   |
| ALO 1  1.70%          |                 |                       |                 |                                                      |   |
|                            | 12/31/2003           | N/A                        | 11.179               | 1309                                                      |   |
|                            | 12/31/2004           | 11.179                     | 12.041               | 1151                                                      |   |
|                            | 12/31/2005           | 12.041                     | 12.327               | 1017                                                      |   |
|                            | 12/31/2006           | 12.327                     | 13.223               | 895                                                       |   |
|                            | 12/31/2007           | 13.223                     | 13.456               | 734                                                       |   |
|                            | 12/31/2008           | 13.456                     | 10.114               | 559                                                       |   |
|                            | 12/31/2009           | 10.114                     | 13.964               | 471                                                       |   |
|                            | 12/31/2010           | 13.964                     | 15.720               | 450                                                       |   |
|                            | 12/31/2011           | 15.720                     | 15.975               | 348                                                       |   |
|                            | 12/31/2012           | 15.975                     | 17.955               | 324                                                       |   |
| ALO 2  1.90%          |                 |                       |                 |                                                      |   |
|                            | 12/31/2003           | N/A                        | 11.092               | 260                                                       |   |
|                            | 12/31/2004           | 11.092                     | 11.923               | 204                                                       |   |
|                            | 12/31/2005           | 11.923                     | 12.182               | 176                                                       |   |
|                            | 12/31/2006           | 12.182                     | 13.042               | 167                                                       |   |
|                            | 12/31/2007           | 13.042                     | 13.244               | 127                                                       |   |
|                            | 12/31/2008           | 13.244                     | 9.935                | 105                                                       |   |
|                            | 12/31/2009           | 9.935                      | 13.690               | 101                                                       |   |
|                            | 12/31/2010           | 13.690                     | 15.380               | 88                                                        |   |
|                            | 12/31/2011           | 15.380                     | 15.599               | 78                                                        |   |
|                            | 12/31/2012           | 15.599                     | 17.497               | 74                                                        |   |
| ALO 3  1.80%          |                 |                       |                 |                                                      |   |
|                            | 12/31/2003           | N/A                        | 11.135               | 1                                                         |   |
|                            | 12/31/2004           | 11.135                     | 11.982               | 5                                                         |   |
|                            | 12/31/2005           | 11.982                     | 12.254               | 7                                                         |   |
|                            | 12/31/2006           | 12.254                     | 13.132               | 7                                                         |   |
|                            | 12/31/2007           | 13.132                     | 13.349               | 6                                                         |   |
|                            | 12/31/2008           | 13.349                     | 10.024               | 5                                                         |   |
|                            | 12/31/2009           | 10.024                     | 13.826               | 5                                                         |   |
|                            | 12/31/2010           | 13.826                     | 15.549               | 5                                                         |   |
|                            | 12/31/2011           | 15.549                     | 15.786               | 3                                                         |   |
|                            | 12/31/2012           | 15.786                     | 17.725               | 3                                                         |   |
| ALO 4  2.00%          |                 |                       |                 |                                                      |   |
|                            | 12/31/2003           | N/A                        | 11.048               | 0                                                         |   |
|                            | 12/31/2004           | 11.048                     | 11.865               | 3                                                         |   |
|                            | 12/31/2005           | 11.865                     | 12.110               | 3                                                         |   |
|                            | 12/31/2006           | 12.110                     | 12.952               | 2                                                         |   |
|                            | 12/31/2007           | 12.952                     | 13.140               | 2                                                         |   |
|                            | 12/31/2008           | 13.140                     | 9.847                | 1                                                         |   |
|                            | 12/31/2009           | 9.847                      | 13.555               | 0                                                         |   |
|                            | 12/31/2010           | 13.555                     | 15.213               | 0                                                         |   |
|                            | 12/31/2011           | 15.213                     | 15.414               | 0                                                         |   |
|                            | 12/31/2012           | 15.414                     | 17.272               | 0                                                         |   |
| ALT 1  1.40%          |                 |
|                            | 12/31/2003           | N/A                        | 11.311               | 341                                                       |   |
|                            | 12/31/2004           | 11.311                     | 12.220               | 330                                                       |   |
|                            | 12/31/2005           | 12.220                     | 12.548               | 328                                                       |   |
|                            | 12/31/2006           | 12.548                     | 13.500               | 254                                                       |   |
|                            | 12/31/2007           | 13.500                     | 13.779               | 182                                                       |   |
|                            | 12/31/2008           | 13.779                     | 10.389               | 106                                                       |   |
|                            | 12/31/2009           | 10.389                     | 14.386               | 83                                                        |   |
|                            | 12/31/2010           | 14.386                     | 16.244               | 70                                                        |   |
|                            | 12/31/2011           | 16.244                     | 16.557               | 62                                                        |   |
|                            | 12/31/2012           | 16.557                     | 18.665               | 49                                                        |   |
| ALT 2  1.60%          |                 |                       |                 |                                                      |   |
|                            | 12/31/2003           | N/A                        | 11.645               | 19                                                        |   |
|                            | 12/31/2004           | 11.645                     | 12.555               | 19                                                        |   |
|                            | 12/31/2005           | 12.555                     | 12.866               | 13                                                        |   |
|                            | 12/31/2006           | 12.866                     | 13.816               | 9                                                         |   |
|                            | 12/31/2007           | 13.816                     | 14.073               | 4                                                         |   |
|                            | 12/31/2008           | 14.073                     | 10.589               | 1                                                         |   |
|                            | 12/31/2009           | 10.589                     | 14.634               | 1                                                         |   |
|                            | 12/31/2010           | 14.634                     | 16.490               | 1                                                         |   |
|                            | 12/31/2011           | 16.490                     | 16.775               | 1                                                         |   |
|                            | 12/31/2012           | 16.775                     | 18.873               | 1                                                         |   |
| ALT 4  1.70%          |                 |                       |                 |                                                      |   |
|                            | 12/31/2003           | N/A                        | 11.179               | 28                                                        |   |
|                            | 12/31/2004           | 11.179                     | 12.041               | 59                                                        |   |
|                            | 12/31/2005           | 12.041                     | 12.327               | 68                                                        |   |
|                            | 12/31/2006           | 12.327                     | 13.223               | 74                                                        |   |
|                            | 12/31/2007           | 13.223                     | 13.456               | 61                                                        |   |
|                            | 12/31/2008           | 13.456                     | 10.114               | 46                                                        |   |
|                            | 12/31/2009           | 10.114                     | 13.964               | 43                                                        |   |
|                            | 12/31/2010           | 13.964                     | 15.720               | 57                                                        |   |
|                            | 12/31/2011           | 15.720                     | 15.975               | 21                                                        |   |
|                            | 12/31/2012           | 15.975                     | 17.955               | 19                                                        |   |
| ALT 5  2.20%          |                 |                       |                 |                                                      |   |
|                            | 12/31/2003           | N/A                        | 10.962               | 171                                                       |   |
|                            | 12/31/2004           | 10.962                     | 11.748               | 589                                                       |   |
|                            | 12/31/2005           | 11.748                     | 11.968               | 871                                                       |   |
|                            | 12/31/2006           | 11.968                     | 12.774               | 1024                                                      |   |
|                            | 12/31/2007           | 12.774                     | 12.933               | 1003                                                      |   |
|                            | 12/31/2008           | 12.933                     | 9.673                | 873                                                       |   |
|                            | 12/31/2009           | 9.673                      | 13.288               | 1092                                                      |   |
|                            | 12/31/2010           | 13.288                     | 14.884               | 1163                                                      |   |
|                            | 12/31/2011           | 14.884                     | 15.051               | 1054                                                      |   |
|                            | 12/31/2012           | 15.051                     | 16.831               | 1064                                                      |   |
| PIMCO VIT Real Return Portfolio |                 |
| ALE 1  1.90%          |                 |                       |                 |                                                      |   |
|                            | 12/31/2003           | N/A                        | 10.481               | 427                                                       |   |
|                            | 12/31/2004           | 10.481                     | 11.200               | 1025                                                      |   |
|                            | 12/31/2005           | 11.200                     | 11.221               | 1020                                                      |   |
|                            | 12/31/2006           | 11.221                     | 11.089               | 778                                                       |   |
|                            | 12/31/2007           | 11.089                     | 12.039               | 620                                                       |   |
|                            | 12/31/2008           | 12.039                     | 10.979               | 802                                                       |   |
|                            | 12/31/2009           | 10.979                     | 12.754               | 770                                                       |   |
|                            | 12/31/2010           | 12.754                     | 13.529               | 637                                                       |   |
|                            | 12/31/2011           | 13.529                     | 14.825               | 691                                                       |   |
|                            | 12/31/2012           | 14.825                     | 15.819               | 617                                                       |   |

----

| Benefit Option *       | Period or Year Ended | AUV at Beginning of Period | AUV at End of Period | Number of Accumulation Units Outstanding at End of Period |
|------------------------|----------------------|----------------------------|----------------------|-----------------------------------------------------------|
| ALE 3  1.80% |                 |
|                   | 12/31/2003           | N/A                        | 10.488               | 16                                                        |   |
|                   | 12/31/2004           | 10.488                     | 11.219               | 20                                                        |   |
|                   | 12/31/2005           | 11.219                     | 11.251               | 42                                                        |   |
|                   | 12/31/2006           | 11.251                     | 11.129               | 46                                                        |   |
|                   | 12/31/2007           | 11.129                     | 12.096               | 48                                                        |   |
|                   | 12/31/2008           | 12.096                     | 11.042               | 52                                                        |   |
|                   | 12/31/2009           | 11.042                     | 12.839               | 68                                                        |   |
|                   | 12/31/2010           | 12.839                     | 13.633               | 33                                                        |   |
|                   | 12/31/2011           | 13.633                     | 14.954               | 36                                                        |   |
|                   | 12/31/2012           | 14.954                     | 15.973               | 41                                                        |   |
| ALE 4  1.95% |                 |                       |                 |                                                      |   |
|                   | 12/31/2003           | N/A                        | 10.477               | 7                                                         |   |
|                   | 12/31/2004           | 10.477                     | 11.191               | 15                                                        |   |
|                   | 12/31/2005           | 11.191                     | 11.206               | 32                                                        |   |
|                   | 12/31/2006           | 11.206                     | 11.068               | 23                                                        |   |
|                   | 12/31/2007           | 11.068                     | 12.011               | 19                                                        |   |
|                   | 12/31/2008           | 12.011                     | 10.948               | 23                                                        |   |
|                   | 12/31/2009           | 10.948                     | 12.711               | 21                                                        |   |
|                   | 12/31/2010           | 12.711                     | 13.477               | 12                                                        |   |
|                   | 12/31/2011           | 13.477                     | 14.761               | 12                                                        |   |
|                   | 12/31/2012           | 14.761                     | 15.743               | 12                                                        |   |
| ALE 5  2.40% |                 |                       |                 |                                                      |   |
|                   | 12/31/2003           | N/A                        | 10.446               | 374                                                       |   |
|                   | 12/31/2004           | 10.446                     | 11.107               | 1290                                                      |   |
|                   | 12/31/2005           | 11.107                     | 11.072               | 1925                                                      |   |
|                   | 12/31/2006           | 11.072                     | 10.887               | 1749                                                      |   |
|                   | 12/31/2007           | 10.887                     | 11.761               | 1631                                                      |   |
|                   | 12/31/2008           | 11.761                     | 10.672               | 2532                                                      |   |
|                   | 12/31/2009           | 10.672                     | 12.335               | 2299                                                      |   |
|                   | 12/31/2010           | 12.335                     | 13.019               | 1888                                                      |   |
|                   | 12/31/2011           | 13.019                     | 14.196               | 1813                                                      |   |
|                   | 12/31/2012           | 14.196                     | 15.071               | 1839                                                      |   |
| ALO 1  1.70% |                 |                       |                 |                                                      |   |
|                   | 12/31/2003           | N/A                        | 10.495               | 214                                                       |   |
|                   | 12/31/2004           | 10.495                     | 11.238               | 509                                                       |   |
|                   | 12/31/2005           | 11.238                     | 11.281               | 529                                                       |   |
|                   | 12/31/2006           | 11.281                     | 11.170               | 369                                                       |   |
|                   | 12/31/2007           | 11.170                     | 12.153               | 332                                                       |   |
|                   | 12/31/2008           | 12.153                     | 11.104               | 433                                                       |   |
|                   | 12/31/2009           | 11.104                     | 12.925               | 456                                                       |   |
|                   | 12/31/2010           | 12.925                     | 13.738               | 394                                                       |   |
|                   | 12/31/2011           | 13.738                     | 15.085               | 403                                                       |   |
|                   | 12/31/2012           | 15.085                     | 16.128               | 359                                                       |   |
| ALO 2  1.90% |                 |                       |                 |                                                      |   |
|                   | 12/31/2003           | N/A                        | 10.481               | 29                                                        |   |
|                   | 12/31/2004           | 10.481                     | 11.200               | 48                                                        |   |
|                   | 12/31/2005           | 11.200                     | 11.221               | 52                                                        |   |
|                   | 12/31/2006           | 11.221                     | 11.089               | 46                                                        |   |
|                   | 12/31/2007           | 11.089                     | 12.039               | 50                                                        |   |
|                   | 12/31/2008           | 12.039                     | 10.979               | 80                                                        |   |
|                   | 12/31/2009           | 10.979                     | 12.754               | 78                                                        |   |
|                   | 12/31/2010           | 12.754                     | 13.529               | 54                                                        |   |
|                   | 12/31/2011           | 13.529                     | 14.825               | 132                                                       |   |
|                   | 12/31/2012           | 14.825                     | 15.819               | 114                                                       |   |
| ALO 3  1.80% |                 |
|                   | 12/31/2003           | N/A                        | 10.488               | 1                                                         |   |
|                   | 12/31/2004           | 10.488                     | 11.219               | 3                                                         |   |
|                   | 12/31/2005           | 11.219                     | 11.251               | 5                                                         |   |
|                   | 12/31/2006           | 11.251                     | 11.129               | 4                                                         |   |
|                   | 12/31/2007           | 11.129                     | 12.096               | 6                                                         |   |
|                   | 12/31/2008           | 12.096                     | 11.042               | 5                                                         |   |
|                   | 12/31/2009           | 11.042                     | 12.839               | 5                                                         |   |
|                   | 12/31/2010           | 12.839                     | 13.633               | 5                                                         |   |
|                   | 12/31/2011           | 13.633                     | 14.954               | 5                                                         |   |
|                   | 12/31/2012           | 14.954                     | 15.973               | 4                                                         |   |
| ALO 4  2.00% |                 |                       |                 |                                                      |   |
|                   | 12/31/2003           | N/A                        | 10.474               | 0                                                         |   |
|                   | 12/31/2004           | 10.474                     | 11.182               | 0                                                         |   |
|                   | 12/31/2005           | 11.182                     | 11.191               | 5                                                         |   |
|                   | 12/31/2006           | 11.191                     | 11.048               | 6                                                         |   |
|                   | 12/31/2007           | 11.048                     | 11.983               | 5                                                         |   |
|                   | 12/31/2008           | 11.983                     | 10.917               | 4                                                         |   |
|                   | 12/31/2009           | 10.917                     | 12.669               | 5                                                         |   |
|                   | 12/31/2010           | 12.669                     | 13.425               | 5                                                         |   |
|                   | 12/31/2011           | 13.425                     | 14.697               | 0                                                         |   |
|                   | 12/31/2012           | 14.697                     | 15.667               | 0                                                         |   |
| ALT 1  1.40% |                 |                       |                 |                                                      |   |
|                   | 12/31/2003           | N/A                        | 10.516               | 43                                                        |   |
|                   | 12/31/2004           | 10.516                     | 11.294               | 54                                                        |   |
|                   | 12/31/2005           | 11.294                     | 11.371               | 61                                                        |   |
|                   | 12/31/2006           | 11.371                     | 11.294               | 53                                                        |   |
|                   | 12/31/2007           | 11.294                     | 12.324               | 61                                                        |   |
|                   | 12/31/2008           | 12.324                     | 11.295               | 87                                                        |   |
|                   | 12/31/2009           | 11.295                     | 13.187               | 77                                                        |   |
|                   | 12/31/2010           | 13.187                     | 14.058               | 68                                                        |   |
|                   | 12/31/2011           | 14.058                     | 15.482               | 135                                                       |   |
|                   | 12/31/2012           | 15.482                     | 16.603               | 44                                                        |   |
| ALT 2  1.60% |                 |                       |                 |                                                      |   |
|                   | 12/31/2003           | N/A                        | 10.502               | 0                                                         |   |
|                   | 12/31/2004           | 10.502                     | 11.257               | 1                                                         |   |
|                   | 12/31/2005           | 11.257                     | 11.311               | 1                                                         |   |
|                   | 12/31/2006           | 11.311                     | 11.211               | 1                                                         |   |
|                   | 12/31/2007           | 11.211                     | 12.209               | 2                                                         |   |
|                   | 12/31/2008           | 12.209                     | 11.168               | 2                                                         |   |
|                   | 12/31/2009           | 11.168                     | 13.012               | 3                                                         |   |
|                   | 12/31/2010           | 13.012                     | 13.844               | 2                                                         |   |
|                   | 12/31/2011           | 13.844                     | 15.216               | 1                                                         |   |
|                   | 12/31/2012           | 15.216                     | 16.285               | 1                                                         |   |
| ALT 4  1.70% |                 |                       |                 |                                                      |   |
|                   | 12/31/2003           | N/A                        | 10.495               | 16                                                        |   |
|                   | 12/31/2004           | 10.495                     | 11.238               | 59                                                        |   |
|                   | 12/31/2005           | 11.238                     | 11.281               | 113                                                       |   |
|                   | 12/31/2006           | 11.281                     | 11.170               | 105                                                       |   |
|                   | 12/31/2007           | 11.170                     | 12.153               | 108                                                       |   |
|                   | 12/31/2008           | 12.153                     | 11.104               | 106                                                       |   |
|                   | 12/31/2009           | 11.104                     | 12.925               | 94                                                        |   |
|                   | 12/31/2010           | 12.925                     | 13.738               | 79                                                        |   |
|                   | 12/31/2011           | 13.738                     | 15.085               | 57                                                        |   |
|                   | 12/31/2012           | 15.085                     | 16.128               | 50                                                        |   |

----

| Benefit Option *                 | Period or Year Ended | AUV at Beginning of Period | AUV at End of Period | Number of Accumulation Units Outstanding at End of Period |
|----------------------------------|----------------------|----------------------------|----------------------|-----------------------------------------------------------|
| ALT 5  2.20%           |                 |
|                             | 12/31/2003           | N/A                        | 10.460               | 196                                                       |   |
|                             | 12/31/2004           | 10.460                     | 11.144               | 1055                                                      |   |
|                             | 12/31/2005           | 11.144                     | 11.131               | 1768                                                      |   |
|                             | 12/31/2006           | 11.131                     | 10.967               | 1797                                                      |   |
|                             | 12/31/2007           | 10.967                     | 11.872               | 1758                                                      |   |
|                             | 12/31/2008           | 11.872                     | 10.794               | 1989                                                      |   |
|                             | 12/31/2009           | 10.794                     | 12.501               | 2134                                                      |   |
|                             | 12/31/2010           | 12.501                     | 13.221               | 2112                                                      |   |
|                             | 12/31/2011           | 13.221                     | 14.444               | 2034                                                      |   |
|                             | 12/31/2012           | 14.444                     | 15.366               | 1761                                                      |   |
| PIMCO VIT Total Return Portfolio |                 |
| ALE 1  1.90%           |                 |                       |                 |                                                      |   |
|                             | 12/31/2003           | N/A                        | 12.468               | 7057                                                      |   |
|                             | 12/31/2004           | 12.468                     | 12.831               | 6330                                                      |   |
|                             | 12/31/2005           | 12.831                     | 12.899               | 5858                                                      |   |
|                             | 12/31/2006           | 12.899                     | 13.145               | 5417                                                      |   |
|                             | 12/31/2007           | 13.145                     | 14.026               | 4618                                                      |   |
|                             | 12/31/2008           | 14.026                     | 14.422               | 3850                                                      |   |
|                             | 12/31/2009           | 14.422                     | 16.142               | 3795                                                      |   |
|                             | 12/31/2010           | 16.142                     | 17.123               | 3439                                                      |   |
|                             | 12/31/2011           | 17.123                     | 17.409               | 2785                                                      |   |
|                             | 12/31/2012           | 17.409                     | 18.719               | 2577                                                      |   |
| ALE 3  1.80%           |                 |                       |                 |                                                      |   |
|                             | 12/31/2003           | N/A                        | 12.517               | 26                                                        |   |
|                             | 12/31/2004           | 12.517                     | 12.895               | 71                                                        |   |
|                             | 12/31/2005           | 12.895                     | 12.976               | 81                                                        |   |
|                             | 12/31/2006           | 12.976                     | 13.236               | 90                                                        |   |
|                             | 12/31/2007           | 13.236                     | 14.137               | 91                                                        |   |
|                             | 12/31/2008           | 14.137                     | 14.551               | 78                                                        |   |
|                             | 12/31/2009           | 14.551                     | 16.303               | 89                                                        |   |
|                             | 12/31/2010           | 16.303                     | 17.311               | 106                                                       |   |
|                             | 12/31/2011           | 17.311                     | 17.617               | 101                                                       |   |
|                             | 12/31/2012           | 17.617                     | 18.963               | 98                                                        |   |
| ALE 4  1.95%           |                 |                       |                 |                                                      |   |
|                             | 12/31/2003           | N/A                        | 12.444               | 14                                                        |   |
|                             | 12/31/2004           | 12.444                     | 12.800               | 28                                                        |   |
|                             | 12/31/2005           | 12.800                     | 12.861               | 42                                                        |   |
|                             | 12/31/2006           | 12.861                     | 13.099               | 52                                                        |   |
|                             | 12/31/2007           | 13.099                     | 13.970               | 53                                                        |   |
|                             | 12/31/2008           | 13.970                     | 14.358               | 57                                                        |   |
|                             | 12/31/2009           | 14.358                     | 16.062               | 56                                                        |   |
|                             | 12/31/2010           | 16.062                     | 17.030               | 44                                                        |   |
|                             | 12/31/2011           | 17.030                     | 17.305               | 42                                                        |   |
|                             | 12/31/2012           | 17.305                     | 18.599               | 32                                                        |   |
| ALE 5  2.40%           |                 |                       |                 |                                                      |   |
|                             | 12/31/2003           | N/A                        | 12.226               | 634                                                       |   |
|                             | 12/31/2004           | 12.226                     | 12.519               | 1510                                                      |   |
|                             | 12/31/2005           | 12.519                     | 12.523               | 2043                                                      |   |
|                             | 12/31/2006           | 12.523                     | 12.698               | 2260                                                      |   |
|                             | 12/31/2007           | 12.698                     | 13.481               | 2364                                                      |   |
|                             | 12/31/2008           | 13.481                     | 13.792               | 2804                                                      |   |
|                             | 12/31/2009           | 13.792                     | 15.360               | 3216                                                      |   |
|                             | 12/31/2010           | 15.360                     | 16.213               | 3255                                                      |   |
|                             | 12/31/2011           | 16.213                     | 16.401               | 2776                                                      |   |
|                             | 12/31/2012           | 16.401                     | 17.548               | 2952                                                      |   |
| ALO 1  1.70%           |                 |                       |                 |                                                      |
|                             | 12/31/2003           | N/A                        | 12.566               | 3706                                                      |   |
|                             | 12/31/2004           | 12.566                     | 12.958               | 3315                                                      |   |
|                             | 12/31/2005           | 12.958                     | 13.053               | 3034                                                      |   |
|                             | 12/31/2006           | 13.053                     | 13.328               | 2673                                                      |   |
|                             | 12/31/2007           | 13.328                     | 14.250               | 2311                                                      |   |
|                             | 12/31/2008           | 14.250                     | 14.681               | 1994                                                      |   |
|                             | 12/31/2009           | 14.681                     | 16.465               | 1787                                                      |   |
|                             | 12/31/2010           | 16.465                     | 17.501               | 1654                                                      |   |
|                             | 12/31/2011           | 17.501                     | 17.829               | 1235                                                      |   |
|                             | 12/31/2012           | 17.829                     | 19.210               | 1128                                                      |   |
| ALO 2  1.90%           |                 |                       |                 |                                                      |   |
|                             | 12/31/2003           | N/A                        | 12.468               | 810                                                       |   |
|                             | 12/31/2004           | 12.468                     | 12.831               | 714                                                       |   |
|                             | 12/31/2005           | 12.831                     | 12.899               | 678                                                       |   |
|                             | 12/31/2006           | 12.899                     | 13.145               | 604                                                       |   |
|                             | 12/31/2007           | 13.145                     | 14.026               | 554                                                       |   |
|                             | 12/31/2008           | 14.026                     | 14.422               | 500                                                       |   |
|                             | 12/31/2009           | 14.422                     | 16.142               | 450                                                       |   |
|                             | 12/31/2010           | 16.142                     | 17.123               | 388                                                       |   |
|                             | 12/31/2011           | 17.123                     | 17.409               | 282                                                       |   |
|                             | 12/31/2012           | 17.409                     | 18.719               | 261                                                       |   |
| ALO 3  1.80%           |                 |                       |                 |                                                      |   |
|                             | 12/31/2003           | N/A                        | 12.517               | 4                                                         |   |
|                             | 12/31/2004           | 12.517                     | 12.895               | 6                                                         |   |
|                             | 12/31/2005           | 12.895                     | 12.976               | 10                                                        |   |
|                             | 12/31/2006           | 12.976                     | 13.236               | 12                                                        |   |
|                             | 12/31/2007           | 13.236                     | 14.137               | 24                                                        |   |
|                             | 12/31/2008           | 14.137                     | 14.551               | 25                                                        |   |
|                             | 12/31/2009           | 14.551                     | 16.303               | 26                                                        |   |
|                             | 12/31/2010           | 16.303                     | 17.311               | 23                                                        |   |
|                             | 12/31/2011           | 17.311                     | 17.617               | 16                                                        |   |
|                             | 12/31/2012           | 17.617                     | 18.963               | 15                                                        |   |
| ALO 4  2.00%           |                 |                       |                 |                                                      |   |
|                             | 12/31/2003           | N/A                        | 12.419               | 0                                                         |   |
|                             | 12/31/2004           | 12.419                     | 12.768               | 6                                                         |   |
|                             | 12/31/2005           | 12.768                     | 12.823               | 8                                                         |   |
|                             | 12/31/2006           | 12.823                     | 13.054               | 10                                                        |   |
|                             | 12/31/2007           | 13.054                     | 13.915               | 9                                                         |   |
|                             | 12/31/2008           | 13.915                     | 14.294               | 8                                                         |   |
|                             | 12/31/2009           | 14.294                     | 15.982               | 5                                                         |   |
|                             | 12/31/2010           | 15.982                     | 16.937               | 5                                                         |   |
|                             | 12/31/2011           | 16.937                     | 17.202               | 7                                                         |   |
|                             | 12/31/2012           | 17.202                     | 18.479               | 2                                                         |   |
| ALT 1  1.40%           |                 |                       |                 |                                                      |   |
|                             | 12/31/2003           | N/A                        | 12.715               | 1211                                                      |   |
|                             | 12/31/2004           | 12.715                     | 13.151               | 932                                                       |   |
|                             | 12/31/2005           | 13.151                     | 13.287               | 855                                                       |   |
|                             | 12/31/2006           | 13.287                     | 13.607               | 717                                                       |   |
|                             | 12/31/2007           | 13.607                     | 14.592               | 539                                                       |   |
|                             | 12/31/2008           | 14.592                     | 15.080               | 453                                                       |   |
|                             | 12/31/2009           | 15.080                     | 16.963               | 385                                                       |   |
|                             | 12/31/2010           | 16.963                     | 18.084               | 338                                                       |   |
|                             | 12/31/2011           | 18.084                     | 18.478               | 265                                                       |   |
|                             | 12/31/2012           | 18.478                     | 19.969               | 210                                                       |   |

----

| Benefit Option *                       | Period or Year Ended | AUV at Beginning of Period | AUV at End of Period | Number of Accumulation Units Outstanding at End of Period |
|----------------------------------------|----------------------|----------------------------|----------------------|-----------------------------------------------------------|
| ALT 2  1.60%                 |                 |
|                                   | 12/31/2003           | N/A                        | 12.956               | 33                                                        |   |
|                                   | 12/31/2004           | 12.956                     | 13.373               | 30                                                        |   |
|                                   | 12/31/2005           | 13.373                     | 13.484               | 22                                                        |   |
|                                   | 12/31/2006           | 13.484                     | 13.782               | 19                                                        |   |
|                                   | 12/31/2007           | 13.782                     | 14.750               | 16                                                        |   |
|                                   | 12/31/2008           | 14.750                     | 15.212               | 15                                                        |   |
|                                   | 12/31/2009           | 15.212                     | 17.077               | 15                                                        |   |
|                                   | 12/31/2010           | 17.077                     | 18.170               | 13                                                        |   |
|                                   | 12/31/2011           | 18.170                     | 18.529               | 10                                                        |   |
|                                   | 12/31/2012           | 18.529                     | 19.984               | 10                                                        |   |
| ALT 4  1.70%                 |                 |                       |                 |                                                      |   |
|                                   | 12/31/2003           | N/A                        | 12.566               | 53                                                        |   |
|                                   | 12/31/2004           | 12.566                     | 12.958               | 104                                                       |   |
|                                   | 12/31/2005           | 12.958                     | 13.053               | 171                                                       |   |
|                                   | 12/31/2006           | 13.053                     | 13.328               | 168                                                       |   |
|                                   | 12/31/2007           | 13.328                     | 14.250               | 155                                                       |   |
|                                   | 12/31/2008           | 14.250                     | 14.681               | 149                                                       |   |
|                                   | 12/31/2009           | 14.681                     | 16.465               | 161                                                       |   |
|                                   | 12/31/2010           | 16.465                     | 17.501               | 135                                                       |   |
|                                   | 12/31/2011           | 17.501                     | 17.829               | 106                                                       |   |
|                                   | 12/31/2012           | 17.829                     | 19.210               | 88                                                        |   |
| ALT 5  2.20%                 |                 |                       |                 |                                                      |   |
|                                   | 12/31/2003           | N/A                        | 12.322               | 288                                                       |   |
|                                   | 12/31/2004           | 12.322                     | 12.643               | 1105                                                      |   |
|                                   | 12/31/2005           | 12.643                     | 12.672               | 1779                                                      |   |
|                                   | 12/31/2006           | 12.672                     | 12.875               | 2065                                                      |   |
|                                   | 12/31/2007           | 12.875                     | 13.696               | 2177                                                      |   |
|                                   | 12/31/2008           | 13.696                     | 14.041               | 2424                                                      |   |
|                                   | 12/31/2009           | 14.041                     | 15.668               | 3232                                                      |   |
|                                   | 12/31/2010           | 15.668                     | 16.571               | 3348                                                      |   |
|                                   | 12/31/2011           | 16.571                     | 16.797               | 3017                                                      |   |
|                                   | 12/31/2012           | 16.797                     | 18.007               | 2958                                                      |   |
| PIMCO VIT Unconstrained Bond Portfolio |                 |
| ALE 1  1.90%                 |                 |                       |                 |                                                      |   |
|                                   | 12/31/2011           | N/A                        | 9.769                | 15                                                        |   |
|                                   | 12/31/2012           | 9.769                      | 10.327               | 31                                                        |   |
| ALE 3  1.80%                 |                 |                       |                 |                                                      |   |
|                                   | 12/31/2011           | N/A                        | 9.776                | 0                                                         |   |
|                                   | 12/31/2012           | 9.776                      | 10.344               | 0                                                         |   |
| ALE 4  1.95%                 |                 |                       |                 |                                                      |   |
|                                   | 12/31/2011           | N/A                        | 9.766                | 0                                                         |   |
|                                   | 12/31/2012           | 9.766                      | 10.318               | 0                                                         |   |
| ALE 5  2.40%                 |                 |                       |                 |                                                      |   |
|                                   | 12/31/2011           | N/A                        | 9.736                | 20                                                        |   |
|                                   | 12/31/2012           | 9.736                      | 10.241               | 266                                                       |   |
| ALO 1  1.70%                 |                 |                       |                 |                                                      |   |
|                                   | 12/31/2011           | N/A                        | 9.782                | 10                                                        |   |
|                                   | 12/31/2012           | 9.782                      | 10.362               | 85                                                        |   |
| ALO 2  1.90%                 |                 |                       |                 |                                                      |   |
|                                   | 12/31/2011           | N/A                        | 9.769                | 0                                                         |   |
|                                   | 12/31/2012           | 9.769                      | 10.327               | 1                                                         |   |
| ALO 3  1.80%                 |                 |                       |                 |                                                      |   |
|                                   | 12/31/2011           | N/A                        | 9.776                | 0                                                         |   |
|                                   | 12/31/2012           | 9.776                      | 10.344               | 0                                                         |   |
| ALO 4  2.00%                 |                 |                       |                 |                                                      |   |
|                                   | 12/31/2011           | N/A                        | 9.763                | 0                                                         |   |
|                                   | 12/31/2012           | 9.763                      | 10.310               | 0                                                         |   |
| ALT 1  1.40%                 |                 |
|                                   | 12/31/2011           | N/A                        | 9.802                | 0                                                         |   |
|                                   | 12/31/2012           | 9.802                      | 10.414               | 9                                                         |   |
| ALT 2  1.60%                 |                 |                       |                 |                                                      |   |
|                                   | 12/31/2011           | N/A                        | 9.789                | 0                                                         |   |
|                                   | 12/31/2012           | 9.789                      | 10.379               | 0                                                         |   |
| ALT 4  1.70%                 |                 |                       |                 |                                                      |   |
|                                   | 12/31/2011           | N/A                        | 9.782                | 4                                                         |   |
|                                   | 12/31/2012           | 9.782                      | 10.362               | 3                                                         |   |
| ALT 5  2.20%                 |                 |                       |                 |                                                      |   |
|                                   | 12/31/2011           | N/A                        | 9.750                | 60                                                        |   |
|                                   | 12/31/2012           | 9.750                      | 10.275               | 117                                                       |   |
| Templeton Global Bond Securities Fund  |                 |
| ALE 1  1.90%                 |                 |                       |                 |                                                      |   |
|                                   | 12/31/2007           | N/A                        | 29.551               | 56                                                        |   |
|                                   | 12/31/2008           | 29.551                     | 30.792               | 150                                                       |   |
|                                   | 12/31/2009           | 30.792                     | 35.857               | 162                                                       |   |
|                                   | 12/31/2010           | 35.857                     | 40.265               | 193                                                       |   |
|                                   | 12/31/2011           | 40.265                     | 39.165               | 172                                                       |   |
|                                   | 12/31/2012           | 39.165                     | 44.213               | 166                                                       |   |
| ALE 3  1.80%                 |                 |                       |                 |                                                      |   |
|                                   | 12/31/2007           | N/A                        | 30.095               | 2                                                         |   |
|                                   | 12/31/2008           | 30.095                     | 31.391               | 7                                                         |   |
|                                   | 12/31/2009           | 31.391                     | 36.591               | 6                                                         |   |
|                                   | 12/31/2010           | 36.591                     | 41.131               | 12                                                        |   |
|                                   | 12/31/2011           | 41.131                     | 40.047               | 8                                                         |   |
|                                   | 12/31/2012           | 40.047                     | 45.254               | 8                                                         |   |
| ALE 4  1.95%                 |                 |                       |                 |                                                      |   |
|                                   | 12/31/2007           | N/A                        | 29.282               | 2                                                         |   |
|                                   | 12/31/2008           | 29.282                     | 30.497               | 4                                                         |   |
|                                   | 12/31/2009           | 30.497                     | 35.496               | 3                                                         |   |
|                                   | 12/31/2010           | 35.496                     | 39.839               | 5                                                         |   |
|                                   | 12/31/2011           | 39.839                     | 38.732               | 4                                                         |   |
|                                   | 12/31/2012           | 38.732                     | 43.702               | 3                                                         |   |
| ALE 5  2.40%                 |                 |                       |                 |                                                      |   |
|                                   | 12/31/2007           | N/A                        | 26.971               | 75                                                        |   |
|                                   | 12/31/2008           | 26.971                     | 27.964               | 276                                                       |   |
|                                   | 12/31/2009           | 27.964                     | 32.401               | 332                                                       |   |
|                                   | 12/31/2010           | 32.401                     | 36.203               | 427                                                       |   |
|                                   | 12/31/2011           | 36.203                     | 35.039               | 406                                                       |   |
|                                   | 12/31/2012           | 35.039                     | 39.357               | 368                                                       |   |
| ALO 1  1.70%                 |                 |                       |                 |                                                      |   |
|                                   | 12/31/2007           | N/A                        | 30.650               | 53                                                        |   |
|                                   | 12/31/2008           | 30.650                     | 32.002               | 101                                                       |   |
|                                   | 12/31/2009           | 32.002                     | 37.340               | 124                                                       |   |
|                                   | 12/31/2010           | 37.340                     | 42.015               | 134                                                       |   |
|                                   | 12/31/2011           | 42.015                     | 40.949               | 127                                                       |   |
|                                   | 12/31/2012           | 40.949                     | 46.320               | 107                                                       |   |

----

| Benefit Option *       | Period or Year Ended | AUV at Beginning of Period | AUV at End of Period | Number of Accumulation Units Outstanding at End of Period |
|------------------------|----------------------|----------------------------|----------------------|-----------------------------------------------------------|
| ALO 2  1.90% |                 |                       |                 |                                                      |   |
|                   | 12/31/2007           | N/A                        | 29.551               | 4                                                         |   |
|                   | 12/31/2008           | 29.551                     | 30.792               | 9                                                         |   |
|                   | 12/31/2009           | 30.792                     | 35.857               | 10                                                        |   |
|                   | 12/31/2010           | 35.857                     | 40.265               | 11                                                        |   |
|                   | 12/31/2011           | 40.265                     | 39.165               | 12                                                        |   |
|                   | 12/31/2012           | 39.165                     | 44.213               | 11                                                        |   |
| ALO 3  1.80% |                 |
|                   | 12/31/2007           | N/A                        | 30.095               | 0                                                         |   |
|                   | 12/31/2008           | 30.095                     | 31.391               | 0                                                         |   |
|                   | 12/31/2009           | 31.391                     | 36.591               | 1                                                         |   |
|                   | 12/31/2010           | 36.591                     | 41.131               | 1                                                         |   |
|                   | 12/31/2011           | 41.131                     | 40.047               | 1                                                         |   |
|                   | 12/31/2012           | 40.047                     | 45.254               | 3                                                         |   |
| ALO 4  2.00% |                 |                       |                 |                                                      |   |
|                   | 12/31/2007           | N/A                        | 29.016               | 0                                                         |   |
|                   | 12/31/2008           | 29.016                     | 30.205               | 0                                                         |   |
|                   | 12/31/2009           | 30.205                     | 35.138               | 0                                                         |   |
|                   | 12/31/2010           | 35.138                     | 39.418               | 0                                                         |   |
|                   | 12/31/2011           | 39.418                     | 38.303               | 1                                                         |   |
|                   | 12/31/2012           | 38.303                     | 43.196               | 0                                                         |   |
| ALT 1  1.40% |                 |                       |                 |                                                      |   |
|                   | 12/31/2007           | N/A                        | 32.376               | 3                                                         |   |
|                   | 12/31/2008           | 32.376                     | 33.906               | 6                                                         |   |
|                   | 12/31/2009           | 33.906                     | 39.681               | 11                                                        |   |
|                   | 12/31/2010           | 39.681                     | 44.783               | 13                                                        |   |
|                   | 12/31/2011           | 44.783                     | 43.777               | 10                                                        |   |
|                   | 12/31/2012           | 43.777                     | 49.669               | 11                                                        |   |
| ALT 2  1.60% |                 |
|                   | 12/31/2007           | N/A                        | 31.215               | 0                                                         |   |
|                   | 12/31/2008           | 31.215                     | 32.625               | 0                                                         |   |
|                   | 12/31/2009           | 32.625                     | 38.105               | 0                                                         |   |
|                   | 12/31/2010           | 38.105                     | 42.918               | 0                                                         |   |
|                   | 12/31/2011           | 42.918                     | 41.871               | 0                                                         |   |
|                   | 12/31/2012           | 41.871                     | 47.410               | 0                                                         |   |
| ALT 4  1.70% |                 |                       |                 |                                                      |   |
|                   | 12/31/2007           | N/A                        | 30.650               | 1                                                         |   |
|                   | 12/31/2008           | 30.650                     | 32.002               | 4                                                         |   |
|                   | 12/31/2009           | 32.002                     | 37.340               | 5                                                         |   |
|                   | 12/31/2010           | 37.340                     | 42.015               | 5                                                         |   |
|                   | 12/31/2011           | 42.015                     | 40.949               | 4                                                         |   |
|                   | 12/31/2012           | 40.949                     | 46.320               | 4                                                         |   |
| ALT 5  2.20% |                 |                       |                 |                                                      |   |
|                   | 12/31/2007           | N/A                        | 27.975               | 116                                                       |   |
|                   | 12/31/2008           | 27.975                     | 29.063               | 216                                                       |   |
|                   | 12/31/2009           | 29.063                     | 33.742               | 351                                                       |   |
|                   | 12/31/2010           | 33.742                     | 37.776               | 441                                                       |   |
|                   | 12/31/2011           | 37.776                     | 36.635               | 403                                                       |   |
|                   | 12/31/2012           | 36.635                     | 41.232               | 390                                                       |   |

----

|   | 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. 3 to Registrant’s Form N-4 (File Nos. 333-182987 and 811-05618) electronically filed on April 8, 2013.          |
| 1.                                                                                                                                                                                                                                                          | Report of Independent Registered Public Accounting Firm                                               |
| 2.                                                                                                                                                                                                                                                          | Consolidated Balance Sheets – December 31, 2012 and 2011                                        |
| 3.                                                                                                                                                                                                                                                          | Consolidated Statements of Operations – Years ended December 31, 2012, 2011, and 2010           |
| 4.                                                                                                                                                                                                                                                          | Consolidated Statements of Comprehensive Income – Years ended December 31, 2012, 2011, and 2010 |
| 5.                                                                                                                                                                                                                                                          | Consolidated Statements of Stockholder's Equity – Years ended December 31, 2012, 2011, and 2010 |
| 6.                                                                                                                                                                                                                                                          | Consolidated Statements of Cash Flows – Years ended December 31, 2012, 2011, and 2010           |
| 7.                                                                                                                                                                                                                                                          | Notes to Consolidated Financial Statements – December 31, 2012 and 2011                         |
| 8.                                                                                                                                                                                                                                                          | Supplemental Schedules:                                                                               |
|                                                                                                                                                                                                                                                        | –                                                                                               | Schedule I – Summary of Investments – Other than Investments in Related Parties                                                                                                                                                                                           |
|                                                                                                                                                                                                                                                        | –                                                                                               | Schedule II – Supplementary Insurance Information                                                                                                                                                                                                                               |
|                                                                                                                                                                                                                                                        | –                                                                                               | Schedule II – Supplementary Insurance Information-amended, incorporated by reference as exhibit EX-99.A.8. from Post-Effective Amendment No. 4 to Registrant’s Form N-4 (File Nos. 333-182987 and 811-05618) electronically filed on April 11, 2013.                      |
|                                                                                                                                                                                                                                                        | –                                                                                               | 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. 3 to Registrant’s Form N-4 (File Nos. 333-182987 and 811-05618) electronically filed on April 8, 2013. |
| 1.                                                                                                                                                                                                                                                          | Report of Independent Registered Public Accounting Firm                                               |
| 2.                                                                                                                                                                                                                                                          | Statements of Assets and Liabilities – December 31, 2012                                        |
| 3.                                                                                                                                                                                                                                                          | Statements of Operations – For the year ended December 31, 2012                                 |
| 4.                                                                                                                                                                                                                                                          | Statements of Changes in Net Assets – For the year ended December 31, 2012 and 2011             |
| 5.                                                                                                                                                                                                                                                          | Notes to the Financial Statements – December 31, 2012                                           |
|                                                                                                                                                                                                                                                        | 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 between North American Life and Casualty Company and NALAC Financial Plans, Inc. dated November 19, 1987; Amendment #1 dated April 12, 2000; Amendment #2 dated September 30, 2002; Amendment #3 dated October 1, 2003 incorporated by reference as exhibit EX-99.B3.b. 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. (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.) |
|                                                                                                                                                                                                                                                        |                                                                                                  | 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 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 Original Contract and Schedule Page –L30800 is incorporated by reference as exhibit EX-99.B4.a. from Pre-Effective Amendment No.1 to Registrant’s Form N-4 (File Nos. 333-82329 and 811-05618), electronically filed on December 30, 1999. |
|                                                                                                                                                                                                                                                        |                                                                                                  | b.                                                                                                                                                                                                                                                                                    | Individual Variable Annuity-May 2003 Contract – L30800(5/03) is incorporated by reference as exhibit EX-99.B4.b. from Post-Effective Amendment No. 8 to Registrant’s Form N-4 (File Nos. 333-82329 and 811-05618), electronically filed on April 24, 2003. |
|                                                                                                                                                                                                                                                        |                                                                                                  | c.                                                                                                                                                                                                                                                                                    | Contract Schedule Page-May 2003 – S40010(5-03) is incorporated by reference as exhibit EX-99.B4.c. from Post-Effective Amendment No. 8 to Registrant’s Form N-4 (File Nos. 333-82329 and 811-05618), electronically filed on April 24, 2003. |
|                                                                                                                                                                                                                                                        |                                                                                                  | d.                                                                                                                                                                                                                                                                                    | Contract Schedule Page-PRIME Plus – S40010(1-06) is incorporated by reference as exhibit EX-99.B4.d. from Post-Effective Amendment No. 16 to Registrant’s Form N-4 (File Nos. 333-82329 and 811-05618), electronically filed on April 27, 2006. |
|                                                                                                                                                                                                                                                        |                                                                                                  | e.                                                                                                                                                                                                                                                                                    | Contract Schedule Addendum-add, reset-PRIME Plus – S40729-A-R is incorporated by reference as exhibit EX-99.B4.e. from Post-Effective Amendment No. 16 to Registrant’s Form N-4 (File Nos. 333-82329 and 811-05618), electronically filed on April 27, 2006. |
|                                                                                                                                                                                                                                                        |                                                                                                  | f.                                                                                                                                                                                                                                                                                    | Contract Schedule Addendum-drop-PRIME Plus – S40729-D is incorporated by reference as exhibit EX-99.B4.f. from Post-Effective Amendment No. 16 to Registrant’s Form N-4 (File Nos. 333-82329 and 811-05618), electronically filed on April 27, 2006. |
|                                                                                                                                                                                                                                                        |                                                                                                  | g.                                                                                                                                                                                                                                                                                    | Asset Allocation Rider-PRIME Plus – S40721-ALT is incorporated by reference as exhibit EX-99.B4.g. from Post-Effective Amendment No. 16 to Registrant’s Form N-4 (File Nos. 333-82329 and 811-05618), electronically filed on April 27, 2006. |
|                                                                                                                                                                                                                                                        |                                                                                                  | h.                                                                                                                                                                                                                                                                                    | PRIME Plus Benefit Rider-PRIME Plus – S40722 is incorporated by reference as exhibit EX-99.B4.h. from Post-Effective Amendment No. 16 to Registrant’s Form N-4 (File Nos. 333-82329 and 811-05618), electronically filed on April 27, 2006. |
|                                                                                                                                                                                                                                                        |                                                                                                  | i.                                                                                                                                                                                                                                                                                    | Annuity Option 6 Amendment Endorsement – S40397 is incorporated by reference as exhibit EX-99.B4.d. from Post-Effective Amendment No. 8 to Registrant’s Form N-4 (File Nos. 333-82329 and 811-05618), electronically filed on April 24, 2003. |
|                                                                                                                                                                                                                                                        |                                                                                                  | j.                                                                                                                                                                                                                                                                                    | Waiver of CDSC Endorsement – S30074 is incorporated by reference as exhibit EX-99.B4.a. from Registrant’s Form N-4 (File Nos. 333-82329 and 811-05618), electronically filed on July 6, 1999. |
|                                                                                                                                                                                                                                                        |                                                                                                  | k.                                                                                                                                                                                                                                                                                    | Traditional GMDB Endorsement – S40020 is incorporated by reference as exhibit EX-99.B4.b. from Pre-Effective Amendment No.1 to Registrant’s Form N-4 (File Nos. 333-82329 and 811-05618), electronically filed on December 30, 1999. |
|                                                                                                                                                                                                                                                        |                                                                                                  | l.                                                                                                                                                                                                                                                                                    | Traditional GMDB Rider II-PRIME Plus – S40727 is incorporated by reference as exhibit EX-99.B4.l. from Post-Effective Amendment No. 16 to Registrant’s Form N-4 (File Nos. 333-82329 and 811-05618), electronically filed on April 27, 2006. |
|                                                                                                                                                                                                                                                        |                                                                                                  | m.                                                                                                                                                                                                                                                                                    | Enhanced Death Benefit Endorsement – S40052 is incorporated by reference as exhibit EX-99.B4.c. from Pre-Effective Amendment No.1 to Registrant’s Form N-4 (File Nos. 333-82329 and 811-05618), electronically filed on December 30, 1999. |
|                                                                                                                                                                                                                                                        |                                                                                                  | n.                                                                                                                                                                                                                                                                                    | Enhanced GMDB Endorsement-May 2003 Contracts – S40390 is incorporated by reference as exhibit EX-99.B4.h. from Post-Effective Amendment No. 8 to Registrant’s Form N-4 (File Nos. 333-82329 and 811-05618), electronically filed on April 24, 2003. |
|                                                                                                                                                                                                                                                        |                                                                                                  | o.                                                                                                                                                                                                                                                                                    | Enhanced GMDB Rider II-PRIME Plus – S40726 is incorporated by reference as exhibit EX-99.B4.o. from Post-Effective Amendment No. 16 to Registrant’s Form N-4 (File Nos. 333-82329 and 811-05618), electronically filed on April 27, 2006. |
|                                                                                                                                                                                                                                                        |                                                                                                  | p.                                                                                                                                                                                                                                                                                    | Traditional GMIB Endorsement – S40021 is incorporated by reference as exhibit EX-99.B4.d. from Pre-Effective Amendment No.1 to Registrant’s Form N-4 (File Nos. 333-82329 and 811-05618), electronically filed on December 30, 1999. |
|                                                                                                                                                                                                                                                        |                                                                                                  | q.                                                                                                                                                                                                                                                                                    | Enhanced GMIB Endorsement – S40094 is incorporated by reference as exhibit EX-99.B4.e. from Pre-Effective Amendment No.1 to Registrant’s Form N-4 (File Nos. 333-82329 and 811-05618), electronically filed on December 30, 1999. |
|                                                                                                                                                                                                                                                        |                                                                                                  | r.                                                                                                                                                                                                                                                                                    | Enhanced GMIB Endorsement (3% & MAV)-May 2003 Contracts – S40391 is incorporated by reference as exhibit EX-99.B4.k. from Post-Effective Amendment No. 8 to Registrant’s Form N-4 (File Nos. 333-82329 and 811-05618), electronically filed on April 24, 2003. |
|                                                                                                                                                                                                                                                        |                                                                                                  | s.                                                                                                                                                                                                                                                                                    | Charitable Remainder Trust Endorsement is incorporated by reference as exhibit EX-99.B4.t. from Registrant’s Form N-4 (File Nos. 333-82329 and 811-05618), electronically filed on July 6, 1999. |
|                                                                                                                                                                                                                                                        |                                                                                                  | t.                                                                                                                                                                                                                                                                                    | IRA Endorsement – S40014 is incorporated by reference as exhibit EX-99.B4.g. from Pre-Effective Amendment No.1 to Registrant’s Form N-4 (File Nos. 333-82329 and 811-05618), electronically filed on December 30, 1999. |
|                                                                                                                                                                                                                                                        |                                                                                                  | u.                                                                                                                                                                                                                                                                                    | Unisex Endorsement – S20146 is incorporated by reference as exhibit EX-99.B4.h. from Pre-Effective Amendment No.1 to Registrant’s Form N-4 (File Nos. 333-82329 and 811-05618), electronically filed on December 30, 1999. |
|                                                                                                                                                                                                                                                        |                                                                                                  | v.                                                                                                                                                                                                                                                                                    | Pension Plan and Profit Sharing Plan Endorsement – S20205 is incorporated by reference as exhibit EX-99.B4.i. from Pre-Effective Amendment No.1 to Registrant’s Form N-4 (File Nos. 333-82329 and 811-05618), electronically filed on December 30, 1999. |
|                                                                                                                                                                                                                                                        |                                                                                                  | w.                                                                                                                                                                                                                                                                                    | Group Pension Plan Death Benefit Endorsement – S30072(4-99) is incorporated by reference as exhibit EX-99.B4.g. from Registrant’s Form N-4 (File Nos. 333-82329 and 811-05618), electronically filed on July 6, 1999. |
|                                                                                                                                                                                                                                                        |                                                                                                  | x.                                                                                                                                                                                                                                                                                    | 403(b) Annuity Endorsement – S30072(4-99) is incorporated by reference as exhibit EX-99.B4.k. from Pre-Effective Amendment No.1 to Registrant’s Form N-4 (File Nos. 333-82329 and 811-05618), electronically filed on December 30, 1999. |
|                                                                                                                                                                                                                                                        |                                                                                                  | y.                                                                                                                                                                                                                                                                                    | Earnings Protection GMDB Endorsement-Original Contracts – S20219(03-01) is incorporated by reference as exhibit EX-99.B4.r. from Post-Effective Amendment No. 8 to Registrant’s Form N-4 (File Nos. 333-82329 and 811-05618), electronically filed on April 24, 2003. |
|                                                                                                                                                                                                                                                        |                                                                                                  | z.                                                                                                                                                                                                                                                                                    | Earnings Protection GMDB Endorsement-May 2003 Contracts – S40379 is incorporated by reference as exhibit EX-99.B4.s. from Post-Effective Amendment No. 8 to Registrant’s Form N-4 (File Nos. 333-82329 and 811-05618), electronically filed on April 24, 2003. |
|                                                                                                                                                                                                                                                        |                                                                                                  | aa.                                                                                                                                                                                                                                                                                   | Earnings Protection GMDB Rider II-PRIME Plus – S40725 is incorporated by reference as exhibit EX-99.B4.aa. from Post-Effective Amendment No. 16 to Registrant’s Form N-4 (File Nos. 333-82329 and 811-05618), electronically filed on April 27, 2006. |
|                                                                                                                                                                                                                                                        |                                                                                                  | ab.                                                                                                                                                                                                                                                                                   | Traditional GPWB Endorsement – S40392 is incorporated by reference as exhibit EX-99.B4.t. from Post-Effective Amendment No. 8 to Registrant’s Form N-4 (File Nos. 333-82329 and 811-05618), electronically filed on April 24, 2003. |
|                                                                                                                                                                                                                                                        |                                                                                                  | ac.                                                                                                                                                                                                                                                                                   | Enhanced GPWB Endorsement – S40393 is incorporated by reference as exhibit EX-99.B4.u. from Post-Effective Amendment No. 8 to Registrant’s Form N-4 (File Nos. 333-82329 and 811-05618), electronically filed on April 24, 2003. |
|                                                                                                                                                                                                                                                        |                                                                                                  | ad.                                                                                                                                                                                                                                                                                   | Inherited IRA/Roth IRA Endorsement is incorporated by reference as exhibit EX-99.B4.ad. from Post-Effective Amendment No. 16 to Registrant’s Form N-4 (File Nos. 333-82329 and 811-05618), electronically filed on April 27, 2006. |
|                                                                                                                                                                                                                                                        | 5.                                                                                                    | a.                                                                                                                                                                                                                                                                                    | Application for Ind. Var. Annuity-Original Contracts is incorporated by reference as exhibit EX-99.B5. from Registrant’s Form N-4 (File Nos. 333-82329 and 811-05618), electronically filed on July 6, 1999. |
|                                                                                                                                                                                                                                                        |                                                                                                  | b.                                                                                                                                                                                                                                                                                    | Application for Ind. Var. Annuity-May 2003 Contracts – F40269(05-03) is incorporated by reference as exhibit EX-99.B5.b. from Post-Effective Amendment No. 8 to Registrant’s Form N-4 (File Nos. 333-82329 and 811-05618), electronically filed on April 24, 2003. |
|                                                                                                                                                                                                                                                        |                                                                                                  | c.                                                                                                                                                                                                                                                                                    | Application for Ind. Var. Annuity-PRIME Plus Contracts – F40269(1-06) is incorporated by reference as exhibit EX-99.B5.c. from Post-Effective Amendment No. 16 to Registrant’s Form N-4 (File Nos. 333-82329 and 811-05618), electronically filed on April 27, 2006. |
|                                                                                                                                                                                                                                                        | 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. is 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.                                                                                                                                                                                                                                                                                    | 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. |
|                                                                                                                                                                                                                                                        |                                                                                                  | d.                                                                                                                                                                                                                                                                                    | 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. |
|                                                                                                                                                                                                                                                        |                                                                                                  | e.                                                                                                                                                                                                                                                                                    | Participation Agreement between Davis Variable Account Fund, Inc., Davis Distributors, LLC and Allianz Life Insurance Company of North America, dated 11/1/1999 incorporated by reference as exhibit EX-99.B8.e. from Pre-Effective Amendment No.1 to Registrant’s Form N-4 (File Nos. 333-82329 and 811-05618), electronically filed on December 30, 1999. |
|                                                                                                                                                                                                                                                        |                                                                                                  | f.                                                                                                                                                                                                                                                                                    | Amendment to Participation Agreement between Davis Variable Account Fund, Inc., Davis Distributors, LLC and Allianz Life Insurance Company of North America dated 5/1/08. incorporated by reference as exhibit EX-99.B8.f. 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. |
|                                                                                                                                                                                                                                                        |                                                                                                  | g.                                                                                                                                                                                                                                                                                    | Administrative Services Agreement between The Dreyfus Corporation and Allianz Life Insurance Company of North America, dated 5/1/2002 incorporated by reference as exhibit EX-99.B8.f. 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. |
|                                                                                                                                                                                                                                                        |                                                                                                  | h.                                                                                                                                                                                                                                                                                    | Amendments to Administrative Services Agreement between The Dreyfus Corporation and Allianz Life Insurance Company of North America, dated 8/7/02, 10/16/06 incorporated by reference as exhibit EX-99.B8.g. 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.                                                                                                                                                                                                                                                                                    | Disribution/12 b-1 Letter Agreement between Dreyfus Service Corporation and USAllianz Investor Services, LLC (predecessor to Allianz Life Financial Services, LLC.), dated 5/1/2002 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. |
|                                                                                                                                                                                                                                                        |                                                                                                  | j.                                                                                                                                                                                                                                                                                    | Fund Participation Agreement between Allianz Life Insurance Company of North America, Dreyfus Investment Portfolios and The Dreyfus Life and Annuity Index Fund, dated 5/1/2002 incorporated by reference as exhibit EX-99.B8.h. from Post-Effective Amendment No. 3 to Allianz Life Variable Account A’s Form N-6 (File Nos. 333-60206 and 811-04965), electronically filed on January 6, 2003. |
|                                                                                                                                                                                                                                                        |                                                                                                  | k.                                                                                                                                                                                                                                                                                    | Amendment to Fund Participation Agreement between Allianz Life Insurance Company of North America, Dreyfus Investment Portfolios and the Dreyfus Stock Index Fund, Inc., dated 5/1/2007 incorporated by reference as exhibit EX-99.B8.j. 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. |
|                                                                                                                                                                                                                                                        |                                                                                                  | l.                                                                                                                                                                                                                                                                                    | 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 Pre-Effective Amendment No.2 to Registrant’s Form N-4 (File Nos. 333-120181 and 811-05618), electronically filed on March 30, 2005. |
|                                                                                                                                                                                                                                                        |                                                                                                  | m.                                                                                                                                                                                                                                                                                    | 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. |
|                                                                                                                                                                                                                                                        |                                                                                                  | n.                                                                                                                                                                                                                                                                                    | Amendment to Administrative Services Agreement between Franklin Templeton Services LLC and Allianz Life Insurance Company of North America, dated July 16, 2012 incorporated by reference as exhibit EX-99.B8.h. from Post-Effective Amendment No. 4 to Registrant's Form N-4 (File Nos. 333-166408 and 811-05618) electronically filed on August 21, 2012. |
|                                                                                                                                                                                                                                                        |                                                                                                  | o.                                                                                                                                                                                                                                                                                    | 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 Pre-Effective Amendment No.2 to Registrant’s Form N-4 (File Nos. 333-120181 and 811-05618), electronically filed on March 30, 2005 |
|                                                                                                                                                                                                                                                        |                                                                                                  | p.                                                                                                                                                                                                                                                                                    | 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. |
|                                                                                                                                                                                                                                                        |                                                                                                  | q.                                                                                                                                                                                                                                                                                    | Participation Agreement between Premier VIT, Allianz Life Insurance Company of North America and Allianz Global Investors Distributors LLC, dated 5/1/2006 incorporated by reference as exhibit EX-99.B8.ai. from Pre-Effective Amendment No.1 to Registrant’s Form N-4 (File Nos. 333-134267 and 811-05618), electronically filed on September 25, 2006. |
|                                                                                                                                                                                                                                                        |                                                                                                  | r.                                                                                                                                                                                                                                                                                    | Administrative Service Agreement between OpCap Advisors LLC and Allianz Life Insurance Company of North America, dated 5/1/2006 incorporated by reference as exhibit EX-99.B8.aj. from Pre-Effective Amendment No.1 to Registrant’s Form N-4 (File Nos. 333-134267 and 811-05618), electronically filed on September 25, 2006. |
|                                                                                                                                                                                                                                                        |                                                                                                  | s.                                                                                                                                                                                                                                                                                    | Administrative Support Service Agreement between OppenheimerFunds, Inc. and Allianz Life Insurance Company of North America, dated 12/1/1999 incorporated by reference as exhibit EX-99.B8.u. from Post-Effective Amendment No. 12 to Registrant’s Form N-4 (File Nos. 333-95729 and 811-05618), electronically filed on April 26, 2004. |
|                                                                                                                                                                                                                                                        |                                                                                                  | t.                                                                                                                                                                                                                                                                                    | Amendment to Administrative Support Service Agreement between OppenheimerFunds, Inc. and Allianz Life Insurance Company of North America, dated 2/1/00 is incorporated by reference as exhibit EX-99.B8.r. 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. |
|                                                                                                                                                                                                                                                        |                                                                                                  | u.                                                                                                                                                                                                                                                                                    | Participation Agreement between Oppenheimer Variable Account Funds, OppenheimerFunds, Inc. and Allianz Life Insurance Company of North America, dated 12/1/1999 incorporated by reference as exhibit EX-99.B8.h. from Pre-Effective Amendment No.1 to Registrant’s Form N-4 (File Nos. 333-82329 and 811-05618), electronically filed on December 30, 1999. |
|                                                                                                                                                                                                                                                        |                                                                                                  | v.                                                                                                                                                                                                                                                                                    | Amendments to Participation Agreement between Oppenheimer Variable Account Funds, OppenheimerFunds, Inc. and Allianz Life Insurance Company of North America, dated 2/1/00, 5/1/02, 4/30/04, 4/29/05, 5/1/06 incorporated by reference as exhibit EX-99.B8.t. 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. |
|                                                                                                                                                                                                                                                        |                                                                                                  | w.                                                                                                                                                                                                                                                                                    | Amended and Restated Services Agreement between Pacific Investment Management Company LLC and Allianz Life Insurance Company of North America, dated 01/01/2007 incorporated by reference as exhibit EX-99.B8.u. 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. |
|                                                                                                                                                                                                                                                        |                                                                                                  | x.                                                                                                                                                                                                                                                                                    | 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. |
|                                                                                                                                                                                                                                                        |                                                                                                  | y.                                                                                                                                                                                                                                                                                    | 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 Pre-Effective Amendment No.1 to Registrant’s Form N-4 (File Nos. 333-82329 and 811-05618), electronically filed on December 30, 1999. |
|                                                                                                                                                                                                                                                        |                                                                                                  | z.                                                                                                                                                                                                                                                                                    | 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. |
|                                                                                                                                                                                                                                                        |                                                                                                  | aa.                                                                                                                                                                                                                                                                                   | 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. |
|                                                                                                                                                                                                                                                        |                                                                                                  | ab.                                                                                                                                                                                                                                                                                   | 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. |
|                                                                                                                                                                                                                                                        |                                                                                                  | ac.                                                                                                                                                                                                                                                                                   | 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. |
|                                                                                                                                                                                                                                                        |                                                                                                  | ad.                                                                                                                                                                                                                                                                                   | 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. |
|                                                                                                                                                                                                                                                        |                                                                                                  | ae.                                                                                                                                                                                                                                                                                   | 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. |
|                                                                                                                                                                                                                                                        |                                                                                                  | af.                                                                                                                                                                                                                                                                                   | Distribution Services Agreement between Allianz Life Insurance Company of North America and Allianz Global Investors Distributors, LLC, dated 01/01/2007 incorporated by reference as exhibit EX-99.B8.x. 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. |
|                                                                                                                                                                                                                                                        |                                                                                                  | ag.                                                                                                                                                                                                                                                                                   | Services Agreement between Prudential Investment Management Services LLC and Allianz Life Insurance Company of North America, dated 12/15/2000 is incorporated by reference as exhibit EX-99.B8.w. from Post-Effective Amendment No. 12 to Registrant’s Form N-4 (File Nos. 333-95729 and 811-05618), electronically filed on April 26, 2004. |
|                                                                                                                                                                                                                                                        |                                                                                                  | ah.                                                                                                                                                                                                                                                                                   | Amendment to Services Agreement between Prudential Investment Management Services LLC and Allianz Life Insurance Company of North America, dated 9/9/2002 incorporated by reference as exhibit EX-99.B8.z. 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. |
|                                                                                                                                                                                                                                                        |                                                                                                  | ai.                                                                                                                                                                                                                                                                                   | Fund Participation Agreement between Allianz Life Insurance Company of North America, The Prudential Series Fund, Inc., Prudential Investments Fund Management LLC, and Prudential Investment Management Services, LLC, dated 12/15/2000 is incorporated by reference as exhibit EX-99.B8.k. from Post-Effective Amendment No. 2 to Registrant’s Form N-4 (File Nos. 333-82329 and 811-05618), electronically filed on December 15, 2000. |
|                                                                                                                                                                                                                                                        |                                                                                                  | aj.                                                                                                                                                                                                                                                                                   | Service Agreement between J.&W. Seligman & Co. Incorporated and Allianz Life Insurance Company of North America, dated 12/16/1999 incorporated by reference as exhibit EX-99.B8.x. from Post-Effective Amendment No. 12 to Registrant’s Form N-4 (File Nos. 333-95729 and 811-05618), electronically filed on April 26, 2004 |
|                                                                                                                                                                                                                                                        |                                                                                                  | ak.                                                                                                                                                                                                                                                                                   | Fund Participation Agreement between Seligman Portfolios, Inc. and Allianz Life Insurance Company of North America, dated 12/1/1999 incorporated by reference as exhibit EX-99.B8.j. from Pre-Effective Amendment No.1 to Registrant’s Form N-4 (File Nos. 333-82329 and 811-05618), electronically filed on December 30, 1999. |
|                                                                                                                                                                                                                                                        |                                                                                                  | al.                                                                                                                                                                                                                                                                                   | Amendments to Participation Agreement between Seligman Portfolios, Inc. and Allianz Life Insurance Company of North America, dated 2/1/00, 5/1/02, 5/1/03, 4/30/04, 5/1/06 incorporated by reference as exhibit EX-99.B8.ad. 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. |
|                                                                                                                                                                                                                                                        |                                                                                                  | am.                                                                                                                                                                                                                                                                                   | Amendment dated September 1, 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.x. from Post-Effective Amendment No. 12 to Registrant’s Form N-4 (File Nos. 333-171427 and 811-05618) electronically filed on January 28, 2013. |
|                                                                                                                                                                                                                                                        |                                                                                                  | an.                                                                                                                                                                                                                                                                                   | Amendment  dated September 1, 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.x. from Post-Effective Amendment No. 12 to Registrant’s Form N-4 (File Nos. 333-171427 and 811-05618) electronically filed on January 28, 2013. |
|                                                                                                                                                                                                                                                        | 9.*                                                                                                   | Opinion and Consent of Counsel                                                                                                                                                                                                                                                        |
|                                                                                                                                                                                                                                                        | 10.*                                                                                                  | Consent of Independent Registered Public Accounting Firm                                                                                                                                                                                                                              |
|                                                                                                                                                                                                                                                        | 11.                                                                                                   | Not Applicable                                                                                                                                                                                                                                                                        |
|                                                                                                                                                                                                                                                        | 12.                                                                                                   | Not Applicable                                                                                                                                                                                                                                                                        |
|                                                                                                                                                                                                                                                        | 13.                                                                                                   | a.                                                                                                                                                                                                                                                                                    | Power of Attorneys incorporated by reference as exhibit EX-99.B13 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. |
|                                                                                                                                                                                                                                                        |                                                                                                  | b.                                                                                                                                                                                                                                                                                    | Power of Attorney-Walter White, incorporated by reference as exhibit EX-99.B13.b. from Post-Effective Amendment No. 6 to Registrant’s Form N-4 (File Nos. 333-171427 and 811-05618) electronically filed on February 16, 2012. |
|                                                                                                                                                                                                                                                        |                                                                                                  | c.                                                                                                                                                                                                                                                                                    | Power of Attorney-Marna C. Whittington, incorporated by reference as exhibit EX-99.B13.c. 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. |
|                                                                                                                                                                                                                                                        |                                                                                                  |                                                                                                                                                                                                                                                                                  |
|                                                                                                                                                                                                                                                        | *                                                                                                     | Filed herewith                                                                                                                                                                                                                                                                        |

| 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; |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | (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. |

| 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:                    |
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| 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                                                                                                                                                                                        |
| Catherine A. Mahone                                                                                                                                                                                                                                                                                                                                                                                      | Governor                                                                                                                                                                                        |
| Giulio Terzariol                                                                                                                                                                                                                                                                                                                                                                                         | 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 1-1-2012 to 12-31-2012                                                                                                                                                           |
| Name of Principal Underwriter                                                                                                                                                                                                                                                                                                                                                                            | Net Underwriting Discounts and Commissions                                                                                                                                                      | Compensation on Redemption | Brokerage Commissions | Compensation |
| Allianz Life Financial Services, LLC                                                                                                                                                                                                                                                                                                                                                                     | $256,459,224.79                                                                                                                                                                                 | $0 | $0 | $0 |
| The $256,459,224.79 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. |
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| 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. |
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| 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; |
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| 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; |
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| 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; |
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| 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. |
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| Signature               | Title                                                       |
|-------------------------|-------------------------------------------------------------|
| Gary C. Bhojwani(1)     | Chairman of the Board                                       |
| Walter R. White(2)      | Director, President & Chief Executive Officer           |
| Giulio Terzariol(1)     | Director, Senior Vice President and Chief Financial Officer |
| Michael P. Sullivan(1)  | Director                                                    |
| Dale E. Lauer(1)        | Director                                                    |
| Marna C. Whittington(3) | Director                                                    |

| (1) | By Power of Attorney incorporated by reference as exhibit EX-99.B13 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. |
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| (2) | By Power of Attorney incorporated by reference as exhibit EX-99.B13.b. from Post-Effective Amendment No. 6 to Registrant’s Form N-4 (File Nos. 333-171427 and 811-05618) electronically filed on February 16, 2012. |
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| (3) | By Power of Attorney incorporated by reference as exhibit EX-99.B13.c. 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. |
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| INDEX TO EXHIBITS |
|-------------------|
| EX-99.B9.         | Opinion and Consent of Counsel |
| EX-99.B10.        | Consent of Independent Registered Public Accounting Firm |

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