ENHANCED GUARANTEED MINIMUM DEATH BENEFIT RIDER II
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This rider forms a part of the Base Contract to which it is attached and is
effective as of the Issue Date of the Base Contract. In the case of a conflict
with any provision in the Base Contract, the provisions of this rider will
control. Defined terms and contractual provisions are set forth in the Base
Contract or are added in this rider. The following hereby replaces the section
of the Contract entitled "Proceeds Payable On Death - Death Benefit Amount
During The Accumulation Period".
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PROCEEDS PAYABLE ON DEATH
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Death Benefit The death benefit payable will be the greater of (a)or (b),
Amount During less any deductions we make to reimburse us for any
The Accumulation applicable Premium Tax.
Period (a) The Contract Value determined as of the end of the
Business Day during which we received at the Service
Center both due proof of death and an election of the
payment method; or
(b) the Enhanced Guaranteed Minimum Death Benefit (GMDB)
value, as defined below, determined as of the end of
the Business Day during which we received at the Service
Center both due proof of death and an election of the
payment method.
The Enhanced GMDB is equal to the greater of (i) or (ii):
(i) [3%] Annual Increase Amount. The [3%] Annual
Increase Amount on the Issue Date is set equal
to the initial Purchase Payment, not including any
applicable bonus.
On each Business Day other than a Contract Anniversary
and before the date of death or the date you exercise
the Guaranteed Partial Withdrawal Benefit (GPWB), if
applicable, the [3%] Annual Increase Amount is equal to:
(1) its value on the immediately preceding Business Day,
(2) plus any additional Purchase Payments, not including
any applicable bonus, received that day,
(3) reduced proportionately by the percentage of any
Contract Value taken as a withdrawal that day,
including any withdrawal charge,
(4) reduced proportionately by the percentage of any
Contract Value applied to Traditional Annuity
Payments under a Partial Annuitization that day,
and
(5) reduced proportionately by the percentage of any PB
Value applied to Guaranteed Minimum Income Benefit
(GMIB) Payments under a Partial Annuitization that
day, if applicable.
On each Contract Anniversary that occurs before the older
Owner's 81st birthday and before the date of death or the
date you exercise the GPWB (if applicable), the [3%] Annual
Increase Amount is the product of [1.03] times its value on
the immediately preceding Business Day. We then process any
transactions received on that Contract Anniversary (such as
additional PurchasePayments, withdrawals, and Partial
Annuitizations) in the same way that we do on each Business
Day other than a Contract Anniversary.
Beginning with the Contract Anniversary that occurs on or
after the older Contract Owner's 81st birthday and before
the date of death or the date of benefit exercise under the
GPWB, if applicable, we calculate the [3%] Annual Increase
Amount in the same way that we do on each Business Day other
than a Contract Anniversary.
The [3%] Annual Increase Amount has a maximum amount
determined by the following:
(1) the product of [1.5] times the total Purchase Payments
received, not including any applicable bonus.
(2) reduced proportionately by the percentage of any
Contract Value withdrawn, including any withdrawal
charge, for each withdrawal,
(3) reduced proportionately by the percentage of any
Contract Value applied to Traditional Annuity Payments
under a Partial Annuitization for each traditional
Partial Annuitization, and
(4) reduced proportionately by the percentage of any PB
Value applied to GMIB Payments under a Partial
Annuitization, if applicable, for each GMIB Partial
Annuitization.
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PROCEEDS PAYABLE ON DEATH (continued)
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Death Benefit (ii) The Maximum Anniversary Value (MAV). The Maximum
Amount During Anniversary Value on the Issue Date is set equal to the
The Accumulation initial Purchase Payment, not including any applicable
Period (continued) bonus.
On each Business Day other than a Contract Anniversary and
before the date of death or the date you exercise the GPWB,
if applicable, the MAV is equal to:
(1) its value on the immediately preceding Business Day ,
(2) plus any additional Purchase Payments, not including
any applicable bonus, received that day,
(3) reduced proportionately by the percentage of any
Contract Value withdrawn that day, including any
withdrawal charge,
(4) reduced proportionately by the percentage of any
Contract Value applied to Traditional Annuity Payments
under a Partial Annuitization that day, and
(5) reduced proportionately by the percentage of any PB
Value applied to GMIB Payments under a Partial
Annuitization taken that day, if applicable.
On each Contract Anniversary that occurs before the older
Owner's 81st birthday and before the date of death or the
date you exercise the GPWB (if applicable), the MAV is
equal to the greater of its value on the immediately
Business Day, or the Contract Value that occurs on that
preceding Contract Anniversary before we process any
transactions. We then process any transactions received on
that Contract Anniversary (such as additional Purchase
Payments, withdrawals, and Partial Annuitizations) in the
same way that we do on each Business Day other than a
Contract Anniversary.
Beginning with the Contract Anniversary that occurs on or
after the older Contract Owner's 81st birthday and before
the date of death or the date you exercise the GPWB, if
applicable, we calculate the MAV in the same way that we
do on each Business Day other than a Contract Anniversary.
On the date you exercise the GPWB, if applicable, (b) above
stops increasing, and will decrease proportionately by the
percentage of any Contract Value withdrawn, including any
withdrawal charges, for each GPWB Payment and/or any Excess
Withdrawals taken once you exercise the GPWB.
If Joint Owners are named, the age of the older Contract
Owner will be used to determine the death benefit. If a
non-individual owns the Contract, then Contract Owner shall
mean Annuitant and the Annuitant's Age is used to determine
the death benefit.
If the Contract Owner dies during the Accumulation Phase and
the sole Beneficiary or Joint Owner is the spouse of the
Contract Owner, he or she may elect to continue the Contract
in his or her own name and exercise all the Contract Owner's
rights under the Contract.
An election by the spouse to continue the Contract must be
made by an Authorized Request on the death claim form before
we pay the death benefit. In this event, the Contract Value
for the Business Day during which this election is
implemented will be adjusted, if necessary, to equal the
death benefit.
Any part of the death benefit amount that had been invested
in the Variable Account remains in the Variable Account
until distribution begins. From the time the death benefit
is determined until complete distribution is made, any
amount in the Variable Account will be subject to investment
risk, which is borne by the Beneficiary.
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GENERAL PROVISIONS
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Conditions for This benefit will terminate on the earliest of:
Termination of the (a) the Business Day before the Income Date that you take a
Enhanced Full Annuitization,
Guaranteed Minimum (b) the Business Day that the Enhanced GMDB Value and the
Death Benefit: Contract Value are both zero, or
(c) contract termination.
Rider Charge The charge for this rider is included in the Mortality and
Expense Risk Charge shown in the Contract Schedule.
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CROSS REFERENCE OF TERMS
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Terms Used The term "Business Day" is used to also mean "Valuation
Interchangeably Date", where applicable. The term "withdrawal charges" is
Between used to also mean "Contingent Deferred Sales Charges", where
Base Contract applicable. The term "withdrawal" is used to also mean
and Rider "surrender", where applicable.
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GLOSSARY
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Definitions Definitions specific to this rider that are not in the Base
Contract follow.
Base Contract The contract to which this rider is attached.
Enhanced The death benefit that is provided by this rider.
Guaranteed Minimum
Death Benefit
Full Annuitization This occurs once you apply the entire Contract Value to
Annuity Payments. Once you take a Full Annuitization, you
cannot take any additional Partial Annuitizations. If you
take a Full Annuitization, the Accumulation Phase of the
contract will end.
Once you take a Full Annuitization you can no longer make
additional Purchase Payments.
Partial This occurs when you apply only part of the Contract Value
Annuitization to Traditional Annuity Payments, or part of the PB Value to
GMIB Payments. If you take a Partial Annuitization the
Accumulation Phase and Annuity Phase of the contract may
occur at the same time. [You can take one Partial
Annuitization every 12 months. The maximum number of
annuitizations we allow at any one time is five. If you take
a Partial Annuitization, there can be only one Owner, he/she
must be the Annuitant, and we will not allow the Owner to
designate a joint Annuitant. Partial Annuitizations are not
available to Joint Owners.]
Once you take a Partial Annuitization you can no longer make
additional Purchase Payments to any portion of the Contract
that is in the Annuity Phase.
Traditional Annuity Payments we make based on the Adjusted Contract
Annuity Payment Value.
Terms defined in The following terms are defined in the PRIME Plus Benefit
the PRIME Plus Rider. If the PRIME Plus Benefit Rider is not attached to
Benefit Rider your Contract, these terms do not apply to this Rider.
(1) Excess Withdrawals
(2) GMIB Payments
(3) GPWB Payments
(4) PB Value
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In all other respects the provisions, conditions, exceptions and limitations
contained in the Base Contract remain unchanged.
Signed for the Company at its home office.
ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
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Secretary President
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