Index Guard Strategy Rider

  

  

  

  

  This rider describes a crediting method which is added to your Base Contract.

  

  

  This rider forms a part of the Base Contract to which it is attached and is effective on the Index Effective Date shown on
    your Index Options statement. Defined terms and contractual provisions are set forth in the Base Contract or are added in this rider. This rider terminates as indicated under the Termination of this Rider provision.

  

  

  The variable assets that support this rider, if any, will be placed in an unregistered, non-insulated, non-unitized separate account.

  

  

  This rider references Withdrawal Charges, Partial MVAs, Contract Charges, and Advisory Fees. Your contract may not include
    all of these references, so please defer to your Base Contract to determine which of these charges, adjustments, and fees apply to you.

  

  

  Definitions

  

  

  

  

  Base Contract

  The contract to which this rider is attached.

  

  

  Cap

  A Cap is the maximum positive Performance Credit for an Index Option. On the Term Start Date, we declare
    a Cap or that an Index Option is uncapped and we guarantee it for the Term. If we declare that an Index Option is uncapped, there is no maximum positive Performance Credit for an Index Option on the Term End Date. Caps are shown on your Index Options
    statement each year and will never be less than the Minimum Cap shown on the Index Options Contract Schedule.

  

  

  Floor

  A Floor is the minimum Performance Credit, which may be negative, for an Index Option on a Term End Date.
    We declare a Floor for each Index Option, and the Floors will not change. The Floors are shown on the Index Options Contract Schedule.

  

  

  Index Option Base

  The value used to determine the dollar amount of the Performance Credit. We establish an Index Option Base for each Index Option.

  

  

  Index Option Value

  The value in a selected Index Option. We establish an Index Option Value for each Index Option.

  

  

  Index Value

  The value of an Index at the end of the Business Day. Index Values are shown on your Index Options statement.

  

  

  Performance Credit

  The return you may receive on the Term End Date when you allocate to an Index Guard Strategy Index Option.

  

  

  Term

  The period of time from the Term Start Date to the Term End Date. The Term length is shown on the Index Options Contract Schedule.

  

  

  Term End Date

  The day on which a Term ends. A Term End Date may only occur on an Index Anniversary.

  

  

  Term Start Date

  The day on which a Term begins. A Term Start Date may only occur on the Index Effective Date or an Index Anniversary.

  
    
      	
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  Contract Value

  

  

  

  

  The following is added to the “Contract
    Value” section of the Base Contract.

  

  

  How we calculate Index Option Values

  On the first Term Start Date, the Index Option Value and Index Option Base for an Index Option are equal to the amount of any
    Purchase Payments and Transfers into the Index Option.

  

  

  At the end of each Business Day other than the Term Start Date or Term End Date, the Index Option Value is equal to the Index
    Option Base plus its Daily Adjustment. We establish a Proxy Value to calculate the Daily Adjustment. The Proxy Value is determined on each Business Day based on the value of a hypothetical set of put and call options as determined by an option pricing
    formula. The Daily Adjustment is calculated before we process any Partial Withdrawal (including any Withdrawal Charges or corresponding Partial MVAs) or deduct any Contract Charges and Advisory Fees using the Index Option Base, the current Proxy Value,
    and the Proxy Value as of the Term Start Date.

  

  

  At the end of each Business Day, we reduce the Index Option Value by the dollar amount withdrawn from the Index Option,
    including any Withdrawal Charge or corresponding Partial MVAs, Contract Charges, and Advisory Fees. We then reduce the Index Option Base by the same percentage by which the amount withdrawn reduced its associated Index Option Value.

  

  

  On the Term End Date, we calculate the Index Option Value by applying its associated Performance
    Credit to its Index Option Base. If the Term End Date is not a Business Day, we calculate the Performance Credit on the next Business Day.

  

  

  On the Term End Date, we determine the Index Return for the Index Option. The Index Return is the Index Value for the Term End
    Date, minus the Index Value from the Term Start Date, divided by the Index Value from the Term Start Date. If the Term Start Date or Term End Date is not a Business Day, we use the Index Value on the next Business Day.

  

  

  If there is a Cap, and the Index Return is positive and greater than or equal to the Cap for an Index Option, then the Performance Credit for the
    Index Option is equal to the Cap. If the Index Return is positive, but less than the Cap, or if the Index return is positive and the Index Option is uncapped, then the Performance Credit for that Index Option is equal to the Index Return. If the Index
    Return is negative, but greater than or equal to the floor, then the Performance Credit for that Index Option is equal to the Index Return. If the Index Return is less than the Floor, then the Performance Credit for that Index Option is equal to the
    Floor.

  

  

  For an Index Option that receives a Performance Credit, we multiply its Performance Credit by its Index Option Base.
    This result is then added to its Index Option Base. We then set the Index Option Value equal to its Index Option Base.

  

  

  Finally, on the Term End Date, for the Index Option we:

  
    	
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            Increase its Index Option Value and Index Option Base by the amount of any Additional Purchase Payments and Transfers into the Index
              Option;

          


  

  
    	
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            Reduce its Index Option Value and Index Option Base by the amount transferred out of the Index Option; and

          


  

  
    	
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            Reduce its Index Option Value and Index Option Base for Withdrawals (including any corresponding Withdrawal Charge or Partial MVAs),
              Contract Charges, and/or Advisory Fees.

          


  

  

  

  

  

  Rider Fee

  

  

  

  

  There is no fee for this rider.

  

  

  Termination of this Rider

  

  

  

  

  This rider terminates on the earlier of the Business Day before the Annuity Date or the date the Base Contract terminates.

  
    
      	
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  In all other respects the provisions, conditions, exceptions and limitations contained in the Base
    Contract remain unchanged and apply to this rider.

  

  

  Signed for the Company at its home office.

  Allianz Life Insurance Company

  Of North America

  

  

  By: /s/ GRETCHEN CEPEK

  [Gretchen Cepek]

  Secretary

  

  

  By: /s/ JASMINE M. JIRELE

  [Jasmine M. Jirele]

  President and CEO

  

  

  

  

  To obtain information, make an inquiry, or for
    assistance with a complaint, please call our toll-free number at [800.624.0197].

  
    	
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