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– Release Delayed ·As Of Filer Filing For·On·As Docs:Size 1/21/20 Allianz Life Ins Co of N… America POS AM¶ 5:2.4M |
Document/Exhibit Description Pages Size 1: POS AM Index Advantage Adv Posam January 21, 2020 HTML 1.07M 5: COVER ¶ Comment-Response or Cover Letter to the SEC HTML 5K 2: EX-4.(C)(IV) Index Options Contact Schedule Page & Addendum HTML 62K 3: EX-4.(E)(II) Index Performance Strategy Rider Ii S40903 HTML 23K 4: EX-4.(E)(III) Inforce Index Performance Strategy Rider Ii HTML 34K S40903-Inforce
(State or other jurisdiction of
incorporation or organization)
|
(Primary Standard Industrial
Classification Code Number)
|
41-1366075
(I.R.S. Employer
Identification No.)
|
Standard Annuity Features | Available Investment Options | Optional Features |
• Five fixed annuitization options
(Annuity Options) • Free withdrawal privilege during the six-year withdrawal charge period for withdrawals from the index-linked investment options. Withdrawals from the variable investment options are not subject to a withdrawal charge.
• Systematic withdrawal program • Minimum distribution program for certain tax-qualified Contracts • Waiver of withdrawal charge benefit
(not available in all states) • Guaranteed death benefit
(Traditional Death Benefit) |
• 22 index-linked investment options (Index Options) based on different combinations of four credit calculation methods (Crediting Methods), five
nationally recognized third-party broad based equity securities indexes and an exchange-traded fund (Index or Indexes), and two time periods for measuring Index Performance (Term)
• Three variable investment options
(Variable Options) |
• Maximum Anniversary Value Death Benefit: Locks in any annual investment gains to potentially provide a death benefit greater than the Traditional Death Benefit. This optional benefit has an additional rider fee. |
The risk of loss can become greater in the case of an early withdrawal due to withdrawal charges. Withdrawals will be subject to federal and state taxation, and withdrawals taken before age 59 1⁄2 may also be subject to a 10% additional federal tax. If this is a Non-Qualified Contract, a withdrawal will be taxable to the extent that gain exists within the Contract. A Non-Qualified Contract is a Contract that is not purchased under a pension or retirement plan that qualifies for special tax treatment under sections of the Internal Revenue Code (the Code). |
Crediting Methods Currently Available Only the Index Performance Strategy offers both 1-year and 3-year Terms. All other Crediting Methods only offer 1-year Terms. |
Indexes Currently Available with 1-year Terms |
Indexes Currently Available with 3-year Terms |
• Index Protection Strategy • Index Precision Strategy • Index Guard Strategy • Index Performance Strategy |
• S&P 500® Index • Russell 2000® Index • Nasdaq-100® Index • EURO STOXX 50® • iShares® MSCI Emerging Markets ETF |
• S&P 500® Index • Russell 2000® Index |
Crediting Methods, Indexes, and the 3-year Terms may not be available in all states, or to previously issued Contracts as detailed in Appendix G. |
Crediting Method Highlights All Crediting Methods provide a level of protection against negative Credits from negative Index performance, and a limit on positive Credits from positive Index performance. Credits are the return you receive when you allocate assets to an Index Option. |
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Negative Index Performance Protection | Positive Index Performance Participation Limit | |
Index Protection Strategy |
• 100% – You will never receive a negative Credit |
• Declared Protection Strategy Credits (DPSCs) (the return you receive if Index performance is zero or positive) – DPSCs cannot be less than 1.50% |
Index Precision Strategy |
• Buffers (the amount of negative Index performance we absorb) – Buffers cannot be less than 5% |
• Precision Rates (the return you receive if Index performance is zero or positive) – Precision Rates cannot be less than 1.50% |
Index Guard Strategy |
• Floors (the maximum
amount of negative Index performance you absorb) – Floors cannot be less than -25% |
• Caps (the upper limit on positive Index performance) – Caps cannot be less than 1.50% |
Crediting Method Highlights All Crediting Methods provide a level of protection against negative Credits from negative Index performance, and a limit on positive Credits from positive Index performance. Credits are the return you receive when you allocate assets to an Index Option. |
||
Negative Index Performance Protection | Positive Index Performance Participation Limit | |
Index Performance Strategy |
• Buffers – Buffers cannot be less than 5% |
• Caps – Caps cannot be less than 1.50% for 1-year Terms, and cannot be less than 5% for 3-year Terms |
Variable Options Currently Available | ||
AZL® MVP Growth Index Strategy Fund | AZL® MVP Balanced Index Strategy Fund | AZL® Government Money Market Fund |
If the Index Protection Strategy is not available in your state, you will not be able to take advantage of its principal protection. This would subject you to ongoing risk of loss and you could lose principal and previous earnings. |
Purchasing a Contract: Key Features At A Glance | |
Issue Age (see section 3) |
On the date we issue the Contract (the Issue Date), all Owners and the Annuitant must be: • age 80 or younger if you select the Traditional Death Benefit, or • age 75 or younger if you select the Maximum Anniversary Value Death Benefit. The Owner is the person or entity designated at issue who may exercise all Contract rights. The Annuitant is the individual upon whose life we base Annuity Payments. |
Purchase Payment Standards (see section 3) |
• $10,000 minimum initial Purchase Payment due on the Issue Date. • You can make additional Purchase Payments of at least $50 during the Accumulation Phase. • $1 million maximum in total Purchase Payments unless we give prior approval for a higher amount. |
Allocation of Purchase Payments and Contract Value Transfers (see section 3) |
You can allocate your Purchase Payments to any or all of the Allocation Options available under your Contract. We only allow assets to move into the Index Options on
the Index Effective Date and on subsequent Index Anniversaries. • We hold Purchase Payments you allocate to the Index Options in the AZL Government Money Market Fund until the Index Effective Date or the next Index Anniversary. • On each Index Option’s Term End Date, you can transfer Variable Account Value to the available Index Options, and you can transfer Index Option Value (the portion of your Contract Value in a particular Index Option) between Index Options. • After a Term Start Date, you cannot add money (either Purchase Payments or Contract Value transfers) to an established 3-year Term Index Option until the Term End Date; instead we will add this money to a new 3-year Term Index Option with a new Term Start Date. • Purchase Payments allocated to an Index Option must be held in the Index Option for the full Term before they can receive a Credit. Therefore, additional Purchase Payments we receive after the Index Effective Date that you allocate to a 1-year Term Index Option are not eligible to receive a Credit until the second Index Anniversary after we receive them, or the fourth Index Anniversary after we receive them for allocations to a 3-year Term Index Option. • You can only transfer Index Option Value to the Variable Options on every sixth Index Anniversary, at which point you can do so even if the assets you wish to transfer have been in the Index Options for less than six full years. In order to transfer out of a 3-year Term Index Option into a Variable Option the sixth Index Anniversary must either be the Term End Date, or you must execute a Performance Lock for on or before the sixth anniversary. |
Daily Adjustment (see “What is the Daily Adjustment?” in this Summary and section 5) |
The Daily Adjustment is how we calculate Index Option Values on days other than the Term Start Date or Term End Date for each Index Option with the Index Precision Strategy, Index Guard Strategy, or Index Performance Strategy. The Daily Adjustment approximates the Index Option Value that will be available on the Term End Date. It is the estimated present value of the future Performance Credit that we will apply on the Term End Date. A Performance Credit is the Credit you receive on a Term End Date for any Index Option with the Index Precision Strategy, Index Guard Strategy, or Index Performance Strategy. The Daily Adjustment takes into account any Index gains subject to the Precision Rate or Cap, or either any Index losses greater than the Buffer or Index losses down to the Floor, but in the form of the estimated present value. Therefore, the Daily Adjustment could result in a loss beyond the protection of the Buffer or Floor. |
Purchasing a Contract: Key Features At A Glance | |
Performance Lock (see “What is the Performance Lock?” in this Summary and section 5) |
A feature that allows you to capture the current Index Option Value during the Term for any Index Option with the Index Precision Strategy, Index Guard Strategy, or Index Performance Strategy. If we execute a Performance Lock for an Index Option we do not apply the Daily Adjustment to it for the remainder of the Term and the Index Option Value will not receive a Performance Credit on the Term End Date. |
Product and Rider Fees (see the Fee Tables and section 6) |
Accrued daily and deducted on each Quarterly Contract Anniversary (the day that occurs three calendar months after the Issue
Date or any subsequent Quarterly Contract Anniversary). Each fee is calculated as a percentage of the Charge Base (the Contract Value on the preceding Quarterly Contract Anniversary, adjusted for
subsequent Purchase Payments and withdrawals). • Product fee is 0.25%. • Rider fee is 0.20% for the Maximum Anniversary Value Death Benefit. If you select this benefit, you will pay 0.45% in total annual Contract fees (product fee plus the rider fee). |
Other Contract Fees and Expenses (see the Fee Tables and section 6) |
• A 6.5% declining withdrawal charge applies to withdrawals taken from the Index Options within six years after receipt of each
Purchase Payment during the Accumulation Phase. The withdrawal charge does not apply to withdrawals from the Variable Options. • $50 contract maintenance charge assessed annually if the total Contract Value is less than $100,000. • $25 transfer fee if you make more than twelve transfers between Variable Options in a Contract Year. • Variable Option operating expenses before fee waivers and expense reimbursements of 0.67% to 0.88% of the average daily net assets. A Contract Year is any period of twelve months beginning on the Issue Date or a subsequent Contract Anniversary. A Contract Anniversary is a twelve-month anniversary of the Issue Date or any subsequent Contract Anniversary. |
You can withdraw your Contract Value, subject to any applicable withdrawal charge for withdrawals from the Index Options, and federal and state taxation. Withdrawals taken before age 59 1⁄2 may also be subject to a 10% additional federal tax. | |
Free Withdrawal Privilege (see section 7) |
Allows you to withdraw 10% of your total Purchase Payments from the Index Options each Contract Year during the Accumulation Phase without incurring a withdrawal
charge. • Any unused free withdrawal privilege in one Contract Year is not added to the amount available in the next Contract Year. • If you withdraw more than the free withdrawal privilege we will assess a withdrawal charge if the withdrawal is taken from a Purchase Payment we received within the last six years. • Not available if you take a full withdrawal of your total Contract Value. |
Systematic Withdrawal Program (see section 7) |
Provides automatic withdrawals of at least $100 to you at a frequency you select. If taken from the Index Options, these withdrawals: • reduce the amount available under the free withdrawal privilege, and • are subject to a withdrawal charge if you exceed the free withdrawal privilege. |
Minimum Distribution Program (see section 7) |
If you own an Individual Retirement Annuity (IRA), SEP IRA or Inherited IRA Contract, this program provides payments to you
designed to meet the Code’s minimum distribution requirements. If taken from the Index Options, these withdrawals: • reduce the amount available under the free withdrawal privilege, but • are not subject to a withdrawal charge if you exceed the free withdrawal privilege. |
Waiver of Withdrawal Charge Benefit (see section 7) |
In most states, this benefit allows you to take a withdrawal without incurring a withdrawal charge if you are confined to a nursing home for a period of at least 90 consecutive days. |
Annuity Payments (see section 8) |
Annuity Payments can provide a guaranteed lifetime fixed income stream with certain tax advantages. We designed the Annuity
Payments for Owners who no longer need immediate access to Contract Value to meet their short-term income needs. • We offer five Annuity Options that provide payments for life, life and term certain, or life with refund. • We base Annuity Payments on your Contract Value, the Annuity Option you select, and the lifetime and age of the Annuitant(s). • For an individually owned Contract, Annuity Payments can be either single or joint. |
Purchasing a Contract: Key Features At A Glance | |
Death Benefit (see section 9) |
When you purchase the Contract you select either the Traditional Death Benefit (no additional fee) or the Maximum Anniversary Value Death Benefit (0.20% rider fee).
In either case, the death benefit is paid upon the first death of any Determining Life during the Accumulation Phase. • We establish the Determining Lives at Contract issue and they generally do not change unless there is a divorce or you establish a Trust. • The Determining Life (or Lives) is either the Owner(s) or the Annuitant if the Owner is a non-individual.If a Determining Life dies during the Accumulation Phase your Beneficiary(s) will receive the greater of the Contract Value or the Guaranteed Death Benefit Value. The Guaranteed Death Benefit Value is either: • total Purchase Payments adjusted for withdrawals if you select the Traditional Death Benefit, or • the Maximum Anniversary Value (the highest Contract Value on any Index Anniversary before age 91, adjusted for subsequent Purchase Payments and withdrawals) if you select the Maximum Anniversary Value Death Benefit. • Withdrawals reduce your Guaranteed Death Benefit Value proportionately, which means this value may be reduced by more than the amount withdrawn. • The Maximum Anniversary Value Death Benefit cannot be less than the Traditional Death Benefit, but they can be equal. • If you change Owner(s) the death benefit may be reduced to Contract Value. |
Material Contract Variations (see Appendix G) |
The product or certain product features may not currently be available in all states or all Contracts, may vary in your state, or may not be available from all selling firms or from all Financial Professionals. Your Financial Professional can also provide information regarding availability of Allocation Options. |
Customer Service (see the last page of this prospectus) |
If you need customer service (for Contract changes, information on Contract Values, requesting a withdrawal or transfer, changing
your allocation instructions, etc.) please contact our Service Center at (800) 624-0197. Our Service Center is the area of our company that issues Contracts and provides Contract maintenance and
routine customer service. You can also contact us by: • mail at Allianz Life Insurance Company of North America, P.O. Box 561, Minneapolis, MN 55440-0561, or • email at Contact.Us@allianzlife.com. |
• | If the Index Value on the Term End Date is equal to or greater than the Index Value on the Term Start Date, regardless of the amount of actual Index Return, the Performance Credit is equal to the Precision Rate. |
• | If the Index Return is negative and the loss is: |
– | less than or equal to the Buffer, the Performance Credit is zero. We absorb any loss up to the Buffer. |
– | greater than the Buffer, the negative Performance Credit is equal to the negative Index Return in excess of the Buffer. You participate in any losses beyond the Buffer. |
• | If the Index Return is positive, the Performance Credit is equal to the Index Return up to the Cap. However, we may choose not to declare a Cap (“uncapped”) for 3-year Term Index Options. If the Index Option is uncapped, the Performance Credit is equal to the Index Return. |
• | If the Index Value on the Term End Date is equal to the Index Value on the Term Start Date, the Performance Credit is zero. |
• | If the Index Return is negative and the loss is: |
– | less than or equal to the Buffer, the Performance Credit is zero. We absorb any loss up to the Buffer. |
– | greater than the Buffer, the negative Performance Credit is equal to the negative Index Return in excess of the Buffer. You participate in any losses beyond the Buffer. |
• The Index Precision Strategy, Index Guard Strategy, and Index Performance Strategy allow negative Performance Credits. A negative Performance Credit means you can lose principal and previous earnings. These losses could be significant. |
• Because we calculate Index Returns only on a single date in time, you may experience negative or flat performance even though the Index you selected for a given Crediting Method experienced gains through some, or most, of the Term. |
What is the asset protection? | |
Index Protection Strategy | • Most protection. • If the Index loses value, you do not receive a negative Credit. |
Index Precision Strategy | • Less protection than the Index Protection Strategy and Index Guard Strategy. Protection may be more or less than what is available
with the Index Performance Strategy depending on Buffers. • Buffer absorbs a percentage of loss, but you receive a negative Performance Credit for losses greater than the Buffer. • Potential for large losses in any Term. • More sensitive to large negative market movements because small negative market movements are absorbed by the Buffer. In a period of extreme negative market performance, the risk of loss is greater with the Index Precision Strategy than with the Index Guard Strategy. |
Index Guard Strategy | • Less protection than the Index Protection Strategy, but more than Index Precision Strategy and Index Performance Strategy. • Permits a negative Performance Credit down to the Floor. • Protection from significant losses. • More sensitive to smaller negative market movements that persist over time because the Floor reduces the impact of large negative market movements. • In an extended period of smaller negative market returns, the risk of loss is greater with the Index Guard Strategy than with the Index Performance Strategy and Index Precision Strategy. • Provides certainty regarding the maximum loss in any Term. |
Index Performance Strategy | • Less protection than the Index Protection Strategy and Index Guard Strategy. Protection may be more or less
than what is available with the Index Precision Strategy depending on Buffers. • Buffers may be different between 1-year and 3-year Terms. • Buffer absorbs a percentage of loss, but you receive a negative Performance Credit for losses greater than the Buffer. • Potential for large losses in any Term. • More sensitive to large negative market movements because small negative market movements are absorbed by the Buffer. In a period of extreme negative market performance, the risk of loss is greater with the Index Performance Strategy than with the Index Guard Strategy. • In extended periods of moderate to large negative market performance, 3-year Terms may provide less protection than the 1-year Terms. |
What is the growth opportunity? | |
Index Protection Strategy | • Growth opportunity limited by the DPSCs. • Least growth opportunity. • May perform best in periods of small positive market movements. • DPSCs will generally be less than the Precision Rates and Caps. |
Index Precision Strategy | • Growth opportunity limited by the Precision Rates. • May perform best in periods of small positive market movements. • Generally more growth opportunity than the Index Protection Strategy, but less than the Index Performance Strategy. • Growth opportunity may be more or less than the Index Guard Strategy depending on Precision Rates and Caps. |
What is the growth opportunity? | |
Index Guard Strategy | • Growth opportunity limited by the Caps. • May perform best in a strong market. • Growth opportunity that generally may be matched or exceeded only by the Index Performance Strategy. However, growth opportunity may be more or less than the Index Precision Strategy or Index Performance Strategy depending on Precision Rates and Caps. |
Index Performance Strategy | • Growth opportunity limited by the Caps. If we choose not to
declare a Cap for a 3-year Term there is no maximum limit on the positive Index Return for that Index Option. • May perform best in a strong market. • Generally the most growth opportunity. However, growth opportunity may be less than the Index Precision Strategy or Index Guard Strategy depending on Precision Rates and Caps. |
What can change within a Crediting Method? | |
Index Protection Strategy | • Initial DPSCs for newly issued Contracts can change monthly or more frequently. • Renewal DPSCs for existing Contracts can change on each Term Start Date. • DPSCs are subject to a 1.50% minimum. |
Index Precision Strategy | • Initial Precision Rates and Buffers for newly issued Contracts can change frequently, but we cannot change your Buffers once they
are established. • Renewal Precision Rates for existing Contracts can change on each Term Start Date. • Precision Rates are subject to a 1.50% minimum, and Buffers are subject to a 5% minimum. |
Index Guard Strategy | • Initial Caps and Floors for newly issued Contracts can change frequently, but we cannot change your Floors once they are
established. • Renewal Caps for existing Contracts can change on each Term Start Date. • Caps are subject to a 1.50% minimum, and Floors are subject to a -25% minimum. |
Index Performance Strategy | • Initial Caps and Buffers for newly issued Contracts can change frequently, but we cannot change your Buffers
once they are established. • Renewal Caps for existing Contracts can change on each Term Start Date. • Caps are subject to a 1.50% minimum for a 1-year Term and 5% minimum for a 3-year Term, and Buffers are subject to a 5% minimum. |
• For any Index Option with the Index Precision Strategy or Index Performance Strategy, you participate in any negative Index Return in excess of the Buffer, which reduces your Contract Value. For example, if we set the Buffer at 5% we would absorb the first -5% of Index Return and you could lose up to 95% of the Index Option Value. However, for any Index Option with the Index Guard Strategy, we absorb any negative Index Return in excess of the Floor. For example, if we set the Floor at -25%, your maximum loss would be limited to -25% of the Index Option Value due to negative Index Returns. |
• The minimum Buffer and Floor are the least amount of protection that you could receive from negative Index Returns for any Index Option with the Index Precision Strategy, Index Guard Strategy, or Index Performance Strategy. |
• DPSCs, Precision Rates, and Caps as set by us from time-to-time may vary substantially based on market conditions. However, in extreme market environments, it is possible that all DPSCs, Precision Rates, and Caps will be equal and reduced to their respective minimums of 1.50% or 5.00%. |
• DPSCs, Precision Rates, Caps, Buffers, and Floors can be different from Index Option to Index Option. For example, Caps for the Index Performance Strategy 1-year Terms can be different between the S&P 500® Index and the Nasdaq-100® Index, and Caps for the S&P 500® Index can be different between 1-year and 3-year Terms on the Index Performance Strategy, and between the 1-year Terms for the Index Guard Strategy and Index Performance Strategy. They may also be different from Contract-to-Contract depending on the Index Effective Date and the state of issuance. |
Historical information on the DPSCs, Precision Rates, Caps, Buffers, and Floors is provided in Appendix C. This information is for historical purposes only and is not a representation as to future DPSCs, Precision Rates, Caps, Buffers, or Floors. |
• DPSCs, Precision Rates, and Caps may be different between newly issued and existing Contracts, and between existing Contracts issued on the same month and day in different years. For example, in May 2019 we set Caps for the Index Performance Strategy 1-year Term with the S&P 500® Index as follows: |
– 13% initial rate for new Contracts issued in 2019, |
– 14% renewal rate for existing Contracts issued in 2018, and |
– 12% renewal rate for existing Contracts issued in 2017. |
• If your Contract is within its Free Look/Right to Examine period you may be able to take advantage of any increase in initial DPSCs, Precision Rates, or Caps by cancelling your Contract and purchasing a new Contract. |
• | The Contract Value is the sum of your Variable Account Value and Index Option Values. Contract Value reflects any previously deducted fees and charges, but does not reflect fees and charges that we would apply on liquidation. The cash surrender value reflects all fees and charges that we would apply on liquidation. |
• | Your Variable Account Value is the sum of the values in your selected Variable Options. It includes the deduction of Variable Option operating expenses, and any previously assessed transfer fee, contract maintenance charge, product fee, and rider fee. It changes each Business Day based on the performance of the Variable Options. |
• | Your total Index Option Value is the sum of the values in each of your selected Index Options. Each Index Option Value includes any Credits from previous Term End Dates and the deduction of any previously assessed contract maintenance charge, product fee, rider fee, and withdrawal charge. Amounts removed from the Index Options during the Term for withdrawals and Contract expenses do not receive a Credit on the Term End Date, but the amount remaining does receive a Credit subject to the applicable DPSC, Precision Rate, Cap, Buffer, or Floor. |
– | On each Business Day during the Term other than the Term Start Date or Term End Date, we calculate the current Index Option Value for each Index Option with the Index Precision Strategy, Index Guard Strategy, and Index Performance Strategy by adding a Daily Adjustment to the Index Option Base. The Index Option Base is the amount you allocate to an Index Option adjusted for withdrawals, deduction of Contract fees and expenses, transfers into or out of the Index Option, and the application of any Credits. |
– | During the Term the Index Option Values for Index Options with the Index Protection Strategy do not change for Index performance, and do not receive the Daily Adjustment. |
(i) | any Index gains during the Term subject to the Precision Rate or Cap, or |
(ii) | either any Index losses greater than the Buffer or Index losses down to the Floor. |
We will not provide advice or notify you regarding whether you should exercise a Performance Lock or the optimal time for doing so. We will not warn you if you exercise a Performance Lock at a sub-optimal time. We are not responsible for any losses related to your decision whether or not to exercise a Performance Lock. |
• | interest rate decreases, |
• | dividend rate increases, |
• | poor market performance, and |
• | the expected volatility of Index prices. Increases in the expected volatility of Index prices negatively affect the Index Precision Strategy and Index Performance Strategy, while decreases in the expected volatility of Index prices negatively affect the Index Guard Strategy. |
January 1, 2010 through December 31, 2019 | |||||||||
S&P 500® Index |
Nasdaq-100® Index |
Russell 2000® Index |
EURO STOXX 50® |
iShares® MSCI Emerging Markets ETF |
|||||
Returns without dividends | 11.80% | 17.44% | 11.35% | 3.16% | 2.26% | ||||
Returns with dividends | 14.12% | 18.77% | 12.86% | 7.17% | 4.21% |
• | You will no longer participate in Index performance, positive or negative, for the remainder of the Index Year for the locked Index Option. This means that under no circumstances will your Index Option Value increase during the remainder of the Index Year. An Index Year is a twelve-month period beginning on the Index Effective Date or a subsequent Index Anniversary. |
• | You will not receive a Performance Credit on any locked Index Option on the Term End Date. |
• | We use the Daily Adjustment calculated at the end of the current Business Day on the Lock Date to determine your locked Index Option Value. This means you will not be able to determine in advance your locked Index Option Value, and it may be higher or lower than it was at the point in time you requested a manual Performance Lock, or that your Index Option reached its target for an automatic Performance Lock. |
• | If a Performance Lock is executed when your Daily Adjustment has declined, you will lock in any loss. It is possible that you would have realized less of a loss or no loss if the Performance Lock occurred at a later time, or if the Index Option was not locked. |
• | We will not provide advice or notify you regarding whether you should exercise a Performance Lock or the optimal time for doing so. We will not warn you if you exercise a Performance Lock at a sub-optimal time. We are not responsible for any losses related to your decision whether or not to exercise a Performance Lock. |
• | the Index is discontinued, |
• | we are unable to use the Index because, for example, changes to an Index make it impractical or expensive to purchase derivative hedging instruments to hedge the Index, or we are not licensed to use the Index, or |
• | the method of calculation of the Index Values changes substantially, resulting in significantly different Index Values and performance results. This could occur, for example, if an Index altered the types of securities tracked, or the weighting of different categories of securities. |
• | we do not change the Charge Base we use to calculate the product and rider fees, and |
• | the DPSCs, Precision Rates, Caps, Buffers, and Floors for the replaced Index will apply to the new Index. We do not change the Buffers or Floors applicable to your Contract, or the current DPSCs, Precision Rates, or Caps that we set on the Term Start Date. |
• | market volatility, |
• | our hedging strategies and investment performance, |
• | the availability of hedging instruments, |
• | the amount of money available to us through Contract fees and expenses to purchase hedging instruments, |
• | your Index Effective Date, |
• | the level of interest rates, |
• | utilization of Contract benefits by Owners, and |
• | our profitability goals. |
Number of Complete Years Since Purchase Payment |
Withdrawal Charge Amount |
|
0 | 6.5% | |
1 | 6% | |
2 | 5% | |
3 | 4% | |
4 | 3% | |
5 | 2% | |
6 years or more | 0% |
(1) | There is no withdrawal charge applicable to amounts withdrawn from the Variable Options. The Contract provides a free withdrawal privilege that allows you to withdraw 10% of your total Purchase Payments annually from the Index Options without incurring a withdrawal charge, as discussed in section 7, Access to Your Money – Free Withdrawal Privilege. |
(2) | The Withdrawal Charge Basis is the total amount under your Contract that is subject to a withdrawal charge, as discussed in section 6, Expenses – Withdrawal Charge. |
(3) | We count all transfers made in the same Business Day as one transfer, as discussed in section 6, Expenses – Transfer Fee. The transfer fee does not apply to transfers to or from the Index Options and these transfers do not count against your free transfers. Transfers are subject to the policies discussed in section 4, Variable Options – Excessive Trading and Market Timing. |
(4) | Not currently deducted, but we reserve the right to do so in the future. This is the maximum charge we could deduct if we exercise this right, as discussed in section 6, Expenses – Premium Tax. |
(5) | Waived if the Contract Value is at least $100,000, as discussed in section 6, Expenses – Contract Maintenance Charge. |
Annual Contract Fees(6) (as a percentage of the Charge Base) |
|
Product Fee
|
0.25% |
Rider Fee for the optional Maximum Anniversary Value Death Benefit
|
0.20% |
|
0.45% |
(6) | We do not assess the product or rider fees during the Annuity Phase. See section 6, Expenses – Annual Contract Fees: Product and Rider Fees. |
Variable Option | Management fees |
Rule 12b-1 fees |
Other expenses |
Acquired fund fees and expenses |
Total annual fund operating expenses before fee waivers and/or expense reimbursements |
BLACKROCK | |||||
AZL Government Money Market Fund(1) | |||||
ALLIANZ FUND OF FUNDS | |||||
AZL MVP Balanced Index Strategy Fund(2) | |||||
AZL MVP Growth Index Strategy Fund(2) |
(1) | Other Expenses for the AZL Government Money Market Fund include recoupment of prior waived fees in the amount of 0.24%. The Manager has voluntarily undertaken to waive, reimburse, or pay the Fund’s expenses to the extent necessary in order to maintain a minimum daily net investment income for the Fund of 0.00%. The recoupment of prior waived fees reflects the recoupment of amounts previously waived, reimbursed, or paid by the Manager under this arrangement. Such recoupments are subject to the following limitations: (1) the repayments will not cause the Fund’s net investment income to fall below 0.00%; (2) the repayments must be made no later than three years after the end of the fiscal year in which the waiver, reimbursement, or payment took place; and (3) any expense recovery paid by the Fund will not cause its expense ratio to exceed 0.87%. See the Investment Option prospectus for further information. |
(2) | The underlying funds may pay 12b-1 fees to the distributor of the Contracts for distribution and/or administrative services. The underlying funds do not pay service fees or 12b-1 fees to the Allianz Fund of Funds and the Allianz Fund of Funds do not pay service fees or 12b-1 fees. The underlying funds of the Allianz Fund of Funds may pay service fees to the insurance companies issuing variable contracts, or their affiliates, for providing customer service and other administrative services to contract purchasers. The amount of such service fees may vary depending on the underlying fund. |
1) | If you surrender your Contract (take a full withdrawal) at the end of each time period. The Contract’s withdrawal charge does not apply to withdrawals from the Variable Options, and so the withdrawal charge is not reflected in the following example. |
Total annual Variable Option operating expenses before any fee waivers or expense reimbursements of: | 1 Year | 3 Years | 5 Years | 10 Years |
0.88% (maximum Investment Option operating expense) | $835 | $1,069 | $1,273 | $2,078 |
0.67% (minimum Investment Option operating expense) | $814 | $1,004 | $1,162 | $1,843 |
2) | If you annuitize your Contract and begin Annuity Payments at the end of each time period. The earliest available Annuity Date (the date we begin making Annuity Payments) is two years after the Issue Date. |
Total annual Variable Option operating expenses before any fee waivers or expense reimbursements of: | 1 Year | 3 Years | 5 Years | 10 Years |
0.88% (maximum Investment Option operating expense) | N/A | $569 | $973 | $2,078 |
0.67% (minimum Investment Option operating expense) | N/A | $504 | $862 | $1,843 |
Total annual Variable Option operating expenses before any fee waivers or expense reimbursements of: | 1 Year | 3 Years | 5 Years | 10 Years |
0.88% (maximum Investment Option operating expense) | $185 | $569 | $973 | $2,078 |
0.67% (minimum Investment Option operating expense) | $164 | $504 | $862 | $1,843 |
Period or Year Ended | AUV at Beginning of Period | AUV at End of Period | Number of Accumulation Units Outstanding at End of Period |
AZL Government Money Market Fund | |||
12/31/2017 | N/A | 12.763 | 2 |
12/31/2018 | 12.763 | 12.893 | 1 |
AZL MVP Balanced Index Strategy Fund | |||
12/31/2017 | N/A | 15.353 | - |
12/31/2018 | 15.353 | 14.671 | - |
AZL MVP Growth Index Strategy Fund | |||
12/31/2017 | N/A | 17.543 | - |
12/31/2018 | 17.543 | 16.412 | - |
• | The Business Day before the Annuity Date. |
• | The Business Day we process your request for a full withdrawal. |
• | Upon the death of any Owner (or the Annuitant if the Owner is a non-individual), the Business Day we first receive a Valid Claim from any one Beneficiary, unless the surviving spouse/Beneficiary continues the Contract. If there are multiple Beneficiaries, the remaining Contract Value continues to fluctuate with the performance of the Allocation Options until the complete distribution of the death benefit. A Valid Claim is the documents we require to be received in Good Order at our Service Center before we pay any death claim. |
• | all applicable phases of the Contract (Accumulation Phase and/or Annuity Phase) have ended, and/or |
• | if we received a Valid Claim, all applicable death benefit payments have been made. |
• | We pay a death benefit to the Beneficiary unless the Beneficiary is the surviving spouse and continues the Contract. |
• | If the deceased Owner was a Determining Life and the surviving spouse Beneficiary continues the Contract: |
– | we increase the Contract Value to equal the Guaranteed Death Benefit Value if greater and available, and the death benefit ends, |
– | the surviving spouse becomes the new Owner, |
– | the Accumulation Phase continues, and |
– | upon the surviving spouse’s death, his or her Beneficiary(s) receives the Contract Value. |
• | If the deceased Owner was not a Determining Life, the Traditional Death Benefit or Maximum Anniversary Value Death Benefit are not available and the Beneficiary(s) receives the Contract Value. |
• | The Beneficiary becomes the Payee. If we are still required to make Annuity Payments under the selected Annuity Option, the Beneficiary also becomes the new Owner. |
• | If the deceased was not an Annuitant, Annuity Payments to the Payee continue. No death benefit is payable. |
• | If the deceased was the only surviving Annuitant, Annuity Payments end or continue as follows. |
• | you remove a Joint Owner due to divorce, we also remove that person as a Determining Life, or |
• | you establish a jointly owned Non-Qualified Contract and change ownership to a Trust, we remove the prior Owner who is not the Annuitant as a Determining Life. |
FOR JOINTLY OWNED CONTRACTS: The sole primary Beneficiary is the surviving Joint Owner regardless of any other named primary Beneficiaries. If both Joint Owners die simultaneously as defined by applicable state law or regulation, we pay the death benefit to the named contingent Beneficiaries or equally to the estate of the Joint Owners if there are no named contingent Beneficiaries. |
• An assignment may be a taxable event. In addition, there are other restrictions on changing the ownership of a Qualified Contract and Qualified Contracts generally cannot be assigned absolutely or on a limited basis. You should consult with your tax adviser before assigning this Contract. |
• An assignment does not change the Determining Life (Lives). |
• | age 80 or younger if you select the Traditional Death Benefit, or |
• | age 75 or younger if you select the Maximum Anniversary Value Death Benefit. |
• | The minimum initial Purchase Payment due on the Issue Date is $10,000. |
• | You can make additional Purchase Payments of $50 or more during the Accumulation Phase. |
• | We do not accept additional Purchase Payments on or after the Annuity Date. |
• | The maximum total Purchase Payments we accept without our prior approval is $1 million. |
On your application if you select… | Your Index Effective Date will be either… |
the earliest Index Effective Date | • your Issue Date, or • the first Business Day of the next month if the Issue Date is the 29th, 30th, or 31st of a month |
the deferred Index Effective Date | • your first Quarterly Contract Anniversary, or • the next Business Day if the first Quarterly Contract Anniversary occurs on a non-Business Day, or the first Business Day of the next month if the first Quarterly Contract Anniversary is the 29th, 30th, or 31st of a month |
• In order to apply Purchase Payments we receive after the Index Effective Date to your selected Index Option(s) on the next Index Anniversary, we must receive them before the end of the Business Day on the Index Anniversary (or before the end of the prior Business Day if the anniversary is a non-Business Day). |
• Variable Options are subject to market risk and assets you allocate to them may lose value, including any Purchase Payments we hold in the AZL Government Money Market before transferring them to your selected Index Options. |
For Owners of Qualified Contracts, AIP is not available if you have an Inherited IRA Contract, an Inherited Roth IRA Contract, or if your Contract is funding a plan that is tax qualified under Section 401 of the Code. |
• | cancel your Contract during this time, we return the greater of Purchase Payments less withdrawals, or Contract Value. We do not assess a withdrawal charge or deduct any other Contract fees or expenses if you cancel your Contract during the free look period. |
• | do not cancel your Contract during this time, we re-allocate your Contract Value according to your Purchase Payment default instructions after the free look period as follows: |
– | if your instructions include the Variable Options, we re-allocate this portion of your Contract Value on the next Business Day after the free look period. |
– | if your instructions include the Index Options, we re-allocate this portion of your Contract Value on the Index Effective Date. |
Investment Management Company and Adviser/Subadviser |
Investment Option Name |
Asset Class | Investment Objective |
Principal Investment Strategies (Normal market conditions) |
Allianz Investment Management LLC | AZL MVP Balanced Index Strategy Fund | A “Fund of Funds” Model Portfolio | Long-term capital appreciation with preservation of capital as an important consideration | Invests primarily (approximately 95%) in a combination of five underlying index funds (generally allocated 40% to 60% to underlying equity index funds and 40% to 60% to underlying bond index 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. |
AZL MVP Growth Index Strategy Fund | A “Fund of Funds” Model Portfolio | Long-term capital appreciation | Invests primarily (approximately 95%) in a combination of five underlying index funds (generally allocated 65% to 85% to underlying equity index funds and 15% to 35% to underlying bond index 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. | |
Blackrock | ||||
Allianz Investment Management LLC/BlackRock Advisors, LLC | AZL Government Money Market Fund | Cash Equivalent | Current income consistent with stability of principal | Invests at least 99.5% of its total assets in cash, government securities, or repurchase agreements that are collateralized fully. Invests at least 80% in government securities or in repurchase agreements collateralized by government securities. Investments include U.S. Treasury bills, notes and other obligations issued or guaranteed as to principal and interest by the U.S. Government, its agencies or instrumentalities, and repurchase agreements secured by such obligations. In addition, the Fund may invest in variable and floating rate instruments. During extended periods of low interest rates, and due in part to contract fees and expenses, the yield of the AZL Government Money Market Fund may also become extremely low and possibly negative. |
• | Your request for a transfer must clearly state the Variable Options involved and how much to transfer. |
• | Your right to make transfers is subject to the Excessive Trading and Market Timing policy discussed later in this section. |
• | Variable Account Value transfers between Variable Options do not change your Purchase Payment default instructions. |
• | Dilution of the interests of long-term investors in a Variable Option, if market timers or others transfer into a Variable 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 a Variable Option to maintain a higher level of cash or causing a Variable 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 Variable Option. Our current Excessive Trading and Market Timing 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 Government Money Market Fund when available in your Contract or any automatic transfers made under any of our programs or Contract features. Round trips are transfers into and back out of the same Variable Option, or transfers out of and back into the same Variable 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 a Variable Option. |
• | Prohibit transfers into specific Variable 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. |
This Contract is not designed for professional market timing organizations, or other persons using programmed, large, or frequent transfers, and we may restrict excessive or inappropriate transfer activity. |
• | You can provide voting instructions based on the dollar value of the Variable Option’s shares in your Contract’s subaccount. We calculate this value based on the number and value of accumulation units for your Contract on the record date. We count fractional units. |
• | You receive proxy materials and a voting instruction form. |
Variable Account Value increases when…. | Variable Account Value decreases when…. |
• you add assets to a Variable Option by Purchase Payment or Contract Value transfer • there is positive Variable Option performance |
• you take assets out of a Variable Option by withdrawal or Contract Value transfer • there is negative Variable Option performance • we deduct Contract expenses |
Contract expenses we deduct from the Variable Options include the product fee, rider fee, contract maintenance charge and transfer fee as described in section 6, Expenses. |
Index Option Values increase when…. | Index Option Values decrease when…. |
• you add assets to an Index Option by Purchase Payment or Contract Value transfer • you receive a positive Credit or Daily Adjustment |
• you take assets out of an Index Option by withdrawal or Contract Value transfer • you receive a negative Credit or Daily Adjustment • we deduct Contract expenses |
Contract expenses we deduct from the Index Options include the product fee, rider fee, contract maintenance charge and withdrawal charge as described in section 6, Expenses. |
• | increase when you add assets to a Variable Option by Purchase Payment or Contract Value transfer, and |
• | decrease when assets are removed from a Variable Option by transfer, withdrawal or deduction of Contract expenses. |
• | 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 Business Day, we determine that the accumulation unit value is $13.25 for the subaccount of your selected Variable Option. |
• | We then divide $3,000 by $13.25 and credit your Contract that night with 226.415094 subaccount accumulation units for your selected Variable Option. |
• | any Purchase Payment received that day which you allocated to that Index Option, and |
• | any Contract Value transferred into that Index Option. |
• | the Daily Adjustment if this is not the Term End Date and this is an Index Option with the Index Precision Strategy, Index Guard Strategy, or Index Performance Strategy, or |
• | a Credit if this is the Term End Date. |
• | Additional Purchase Payments received on the Term End Date and allocated to this Index Option, and transfers of Variable Account Value or Index Option Value into this Index Option, increase these values by the dollar amount allocated or transferred. |
• | Transfers out of this Index Option reduce these values by the dollar amount removed from the Index Option. |
• | Partial withdrawals you request and Contract expenses we deduct reduce these values by the dollar amount withdrawn from the Index Option. |
– | We deduct partial withdrawals and Contract expenses from the Index Options proportionately based on the percentage of Contract Value in each Index Option using values determined at the end of the Business Day before we process the withdrawal or deduct the Contract expense. However, if you specifically direct us to take a partial withdrawal from a specific Index Option we reduce that Index Option Value by the dollar amount you specify, including any applicable withdrawal charge. |
– | We then reduce each Index Option Base by the same percentage that the amount withdrawn reduced its associated Index Option Value. |
• Partial withdrawals and Contract expenses we deduct from the Index Options during the Term do not receive a Credit on the Term End Date. However, the remaining amount in the Index Options is eligible for a Credit on the Term End Date. |
• You cannot specify from which Allocation Option we deduct the product fee, rider fee, and contract maintenance charge; we deduct these Contract expenses from each Allocation Option proportionately based on the percentage of Contract Value in each Allocation Option. However, you can specify from which Allocation Option we deduct a partial withdrawal. Because the withdrawal charge only applies to amounts withdrawn from the Index Options, there is a financial disadvantage to taking a withdrawal from the Index Options, compared to taking a withdrawal from the Variable Options. |
Crediting Method | If Index Value is less than it was on the Term Start Date (i.e., Index Return is negative): |
If Index Value is equal to or greater than it was on the Term Start Date (i.e., Index Return is zero or positive): |
Index Protection Strategy | Credit is zero | Credit is equal to the DPSC set on the Term Start Date |
Index Precision Strategy | Performance Credit is equal to the negative Index Return in excess of the BufferAssume the Buffer is 10%. If the Index Return is… • -8%, the Performance Credit is zero. • -12%, the Performance Credit is -2%. |
Performance Credit is equal to the Precision Rate set on the Term Start Date |
Index Guard Strategy | Performance Credit is equal to the negative Index Return subject to the FloorAssume the Floor is -10%. If the
Index Return is… • -8%, the Performance Credit is -8%. • -12%, the Performance Credit is -10%. |
Performance Credit is equal to the Index Return subject to the Cap set on the Term Start DateAssume the Cap is 8%. If the Index
Return is… • 0%, the Performance Credit is zero. • 6%, the Performance Credit is 6%. • 12%, the Performance Credit is 8%. |
Crediting Method | If Index Value is less than it was on the Term Start Date (i.e., Index Return is negative): |
If Index Value is equal to or greater than it was on the Term Start Date (i.e., Index Return is zero or positive): |
Index Performance Strategy | Performance Credit is equal to the negative Index Return in excess of the Buffer. Assume the Buffer for the 1-year Term is 10%. If the Index Return is… • -8%, the Performance Credit is zero. • -12%, the Performance Credit is -2%. |
Performance Credit is equal to the Index Return subject to the Cap set on the Term Start Date Assume the Cap for the 1-year Term is 8%. If the Index Return is… • 0%, the Performance Credit is zero. • 6%, the Performance Credit is 6%. • 12%, the Performance Credit is 8%. |
You cannot participate in the Optional Reallocation Program if you select a 3-year Term Index Option. If you are participating in this program and select a 3-year Term Index Option, on the Term Start Date your participation in this program ends and we will not reallocate your 1-year Term Index Option Values. |
Annual Contract Fees (as a percentage of the Charge Base) |
|
Product Fee(1)
|
0.25% |
Rider Fee for the optional Maximum Anniversary Value Death Benefit(2)
|
0.20% |
|
0.45% |
(1) | Upon the death of the Owner, we continue to assess this product fee under death benefit payment Option B, and with optional payments under death benefit payment Option C, as noted in section 9, Death Benefit. |
(2) | We no longer assess the 0.20% rider fee for the Maximum Anniversary Value Death Benefit once we receive either the first Valid Claim from any one Beneficiary, or due proof of a Determining Life’s death if you and the Determining Life are different individuals and the Determining Life predeceases you. |
Issue Date | Non-Quarterly Contract Anniversaries | Quarterly Contract Anniversaries* |
• The Charge Base is equal to your initial Purchase Payment.• We begin calculating and accruing the daily product fee, and rider fee if applicable, on the day after the Issue Date. | • First we calculate and accrue the daily product and rider fees, using the Charge Base. If this is a non-Business Day we use the Charge Base from
the end of the prior Business Day.• Then if this is a Business Day we increase/decrease the Charge Base as follows. – If we receive an additional Purchase Payment, we increase the Charge Base by the amount we receive. – If you take a partial withdrawal (including a Penalty-Free Withdrawal), or we withdraw Contract fees and expenses, we decrease the Charge Base by the percentage of Contract Value withdrawn. |
• First we process all daily transactions and determine your Contract Value. Daily transactions include any gains/losses due to Variable
Option performance or application of any Daily Adjustment (or Credit if this is also the Term End Date), any additional Purchase Payment, and deductions for withdrawals and Contract fees and expenses, including deduction of the accrued daily product and rider fees for the prior quarter. – We deduct the accrued product and rider fees for the prior quarter on a dollar for dollar basis from the Contract Value, and proportionately from each Allocation Option.• Then we set the Charge Base equal to this Contract Value and we calculate and accrue the next quarter’s daily product and rider fees using the newly set Charge Base.* Or the next Business Day if the Quarterly Contract Anniversary is a non-Business Day. |
Example: Contract Value is $125,000; Charge Base is $127,000; a $10,000 partial withdrawal
(including any withdrawal charge) would decrease the Charge Base by $10,160. [($10,000 ÷ $125,000) x $127,000] Any increase/decrease to the Charge Base will increase/decrease the daily product and rider fees we calculate and accrue on the next day. |
||
Examples of how we calculate the product and rider fees are included in Appendix E. |
We do not treat the deduction of the accrued product and rider fees as a withdrawal when computing your Guaranteed Death Benefit Value (see section 9). However, if you select the Maximum Anniversary Value Death Benefit we deduct all Contract fees and expenses on the Index Anniversary (including the accrued product and rider fees if this is also a Quarterly Contract Anniversary) before we capture any annual investment gains in the Maximum Anniversary Value. |
• | If you take a full withdrawal of the total Contract Value, we deduct the final accrued product and rider fees before processing the withdrawal. |
• | If you annuitize the Contract, we deduct the final accrued product and rider fees before calculating Annuity Payments. |
• | Upon the death of an Owner (or Annuitant if the Owner is a non-individual), we deduct the final accrued rider fee before calculating the death benefit, and we deduct the final accrued product fee before calculating the death benefit if death benefit payment Option A or Annuity Payments under death benefit payment Option C is selected. |
If on a Quarterly Contract Anniversary (or the next Business Day if the Quarterly Contract Anniversary is a non-Business Day) the Contract Value is less than the accrued product and rider fees, we deduct your total remaining Contract Value to cover the accrued product and rider fees and reduce your Contract Value to zero. If the deduction of the accrued product and rider fees reduces your Contract Value to zero and your selected death benefit has ended, we treat this as a full withdrawal and your Contract ends. |
• | During the Accumulation Phase, if the total Contract Value for all Allianz Index Advantage ADV® Contracts you own is at least $100,000 at the end of the last Business Day before the Contract Anniversary, or if the Contract Value for this single Allianz Index Advantage ADV® Contract is at least $100,000 on the Contract Anniversary. We determine the total Contract Value for all individually owned Allianz Index Advantage ADV® Contracts by using the Owner’s social security number, and for non-individually owned Allianz Index Advantage ADV® Contracts we use the Annuitant’s social security number. |
• | During the Annuity Phase if the total Contract Value for all Allianz Index Advantage ADV® Contracts on the last Business Day before the Annuity Date is at least $100,000. |
• | When paying death benefits under death benefit payment options A, B, or C. |
• | on a dollar for dollar basis from the Contract Value on the Contract Anniversary (or the next Business Day if the Contract Anniversary is a non-Business Day), and |
• | we deduct it proportionately from each Allocation Option. |
Calculating a Withdrawal Charge | Example | |
For purposes of calculating any withdrawal charge for a withdrawal from the Index Options, we withdraw Purchase Payments on a “first-in-first-out” (FIFO) basis and we process withdrawal requests as follows. | You make an initial Purchase Payment of $30,000 and make another Purchase Payment in the first month of the second Contract Year of $70,000. All Purchase Payments are allocated to the Index Options. In the third month of the third Contract Year, your Contract Value is $110,000 and you request a $52,000 withdrawal. We withdraw money and compute the withdrawal charge as follows. | |
1. First we withdraw from Purchase Payments that we have had for six or more complete years, which is your Contract’s withdrawal charge period. This withdrawal is not subject to a withdrawal charge and it reduces the Withdrawal Charge Basis. | 1. Purchase Payments beyond the withdrawal charge period. All payments are still within the withdrawal charge period, so this does not apply. | |
2. Then, if this is a partial withdrawal, we withdraw from the free withdrawal privilege (see section 7, Access to Your Money – Free Withdrawal Privilege). This withdrawal is not subject to a withdrawal charge and it does not reduce the Withdrawal Charge Basis. | 2. Amounts available under the free withdrawal privilege. You did not take any other withdrawals this year, so you can withdraw up to 10% of your total payments (or $10,000) without incurring a withdrawal charge. |
Calculating a Withdrawal Charge | Example | |||
3. Next, on a FIFO basis, we withdraw from Purchase Payments within your Contract’s withdrawal charge period and assess a withdrawal charge. Withdrawing
payments on a FIFO basis may help reduce the total withdrawal charge because the charge declines over time. We determine your total withdrawal charge by multiplying each payment by its applicable withdrawal charge percentage and then
totaling the charges. This withdrawal reduces the Withdrawal Charge Basis. The withdrawal charge as a percentage of each Purchase Payment withdrawn is as follows. |
3. Purchase Payments within the withdrawal charge period on a FIFO basis. The total amount we withdraw from
the first Purchase Payment is $30,000, which is subject to a 5% withdrawal charge, and you receive $28,500. We determine this amount as follows: (amount withdrawn) x (1 – withdrawal charge) = the amount you receive, or: $30,000 x 0.95 = $28,500 Next we withdraw from the second Purchase Payment. So far, you received $38,500 ($10,000 under the free withdrawal privilege and $28,500 from the first Purchase Payment), so we withdraw $13,500 from the second Purchase Payment to equal the $52,000 you requested. The second Purchase Payment is subject to an 6% withdrawal charge. We calculate the total amount withdrawn and its withdrawal charge as follows: (the amount you receive) ÷ (1 – withdrawal charge) = amount withdrawn, or: $13,500 ÷ 0.94 = $14,362. |
|||
Number of Complete Years Since Purchase Payment |
Withdrawal Charge Amount |
|||
0 1 2 3 4 5 6 years or more |
6.5% 6% 5% 5% 3% 2% 0% |
|||
4. Finally we withdraw any Contract earnings. This withdrawal is not subject to a withdrawal charge and it does not reduce the Withdrawal Charge Basis. | 4. Contract earnings. We already withdrew your requested amount, so this does not apply. In total we withdrew $54,326 from your Contract, of which you received $52,000 and paid a withdrawal charge of $2,326. |
• Because there is no withdrawal charge applicable to the Variable Options, there is a financial disadvantage to directing us to withdraw Contract Value only from the Index Options during the withdrawal charge period, rather than the Variable Options. |
• Any amount withdrawn from an Index Option is subject to both a Daily Adjustment (which may be negative) and any applicable withdrawal charge. |
• We do not reduce the Withdrawal Charge Basis for Penalty-Free Withdrawals or the, withdrawals from the Variable Options, or the deduction of Contract expenses other than the withdrawal charge. This means that upon a full withdrawal, if your Index Option Value is less than your remaining Purchase Payments that are still subject to a withdrawal charge we will assess a withdrawal charge on more than the amount withdrawn from the Index Options. This can occur because your Contract Value was reduced for: |
– prior Penalty-Free Withdrawals, |
– prior withdrawals from the Variable Options, |
– deductions of Contract expenses other than the withdrawal charge, and/or |
– poor performance. |
This also means that upon a full withdrawal you may not receive any money. |
• Withdrawals may also be subject to ordinary income taxes, and a 10% additional federal tax if you are under age 59 1⁄2, and the amount of Contract Value available for withdrawal may be affected by the Daily Adjustment (which can be negative). |
• For tax purposes in most instances, withdrawals from Non-Qualified Contracts are considered to come from earnings first, not Purchase Payments. |
• | by taking required minimum distributions (Qualified Contracts only) as discussed in “Minimum Distribution Program and Required Minimum Distribution (RMD) Payments” later in this section; |
• | by taking Annuity Payments; or |
• | when we pay a death benefit. |
• | total Contract Value, |
• | less any final product fee, final rider fee and final contract maintenance charge, and |
• | less any withdrawal charge. |
• Withdrawals may be subject to a withdrawal charge, ordinary income taxes, and a 10% additional federal tax if you are under age 59 1⁄2, and the amount of Contract Value available for withdrawal may be affected by the Daily Adjustment (which can be negative). |
• We may be required to provide information about you or your Contract to government regulators. We may also be required to stop Contract disbursements and thereby refuse any transfer requests, and refuse to pay any withdrawals, surrenders, or death benefits until we receive instructions from the appropriate regulator. If, pursuant to SEC rules, the AZL Government Money Market Fund suspends payment of redemption proceeds in connection with a fund liquidation, we will delay payment of any transfer, partial withdrawal, surrender, or death benefit from the AZL Government Money Market Fund subaccount until the fund is liquidated. |
• Ordinary income taxes and tax penalties may apply to systematic withdrawals. |
• The systematic withdrawal program is not available while you are receiving required minimum distribution payments. |
• You should consult a tax adviser before purchasing a Qualified Contract that is subject to RMD payments. |
• The minimum distribution program is not available while you are receiving systematic withdrawals. |
• | the New York Stock Exchange is closed (other than customary weekend and holiday closings); |
• | trading on the New York Stock Exchange is restricted; |
• | an emergency (as determined by the SEC) exists as a result of which disposal of the Variable Option shares is not reasonably practicable or we cannot reasonably value the Variable Option shares; or |
• | during any other period when the SEC, by order, so permits for the protection of Owners. |
• | The Contract Value on the Annuity Date. |
• | The age of the Annuitant and any joint Annuitant on the Annuity Date. |
• | The gender of the Annuitant and any joint Annuitant where permitted. |
• | The Annuity Option you select. |
• | Your Contract’s interest rate (or current rates, if higher) and mortality table. |
If you do not choose an Annuity Option before the Annuity Date, we make Annuity Payments to the Payee under Annuity Option 2 with ten years of guaranteed monthly payments. |
If on the Annuity Date (which may occur as early as age 90 or as late as age 100) your Contract Value is greater than zero, you must annuitize the Contract. We notify you of your available options in writing 60 days in advance, including the option to extend your Annuity Date if available. If on your Annuity Date you have not selected an Annuity Option, we make payments under Annuity Option 2 with ten years of guaranteed monthly payments. Upon annuitization you no longer have Contract Value or a death benefit, and you cannot receive any other periodic withdrawals or payments other than Annuity Payments. |
• | total Purchase Payments adjusted for withdrawals if you select the Traditional Death Benefit, or |
• | the Maximum Anniversary Value if you select the Maximum Anniversary Value Death Benefit. |
• | We increase it by the amount of any additional Purchase Payments. |
• | We reduce it by the percentage of any Contract Value withdrawn. |
• | its current value after processing any additional Purchase Payments or withdrawals, or |
• | the Contract Value determined at the end of the Business Day after we process all daily transactions including Credits, any additional Purchase Payments or withdrawals, and amounts we withdraw for Contract expenses. Contract Value includes the Daily Adjustment if you select a 3-year Term Index Option and this anniversary is not a Term End Date. |
• | the older Determining Life’s 91st birthday, or |
• | the end of the Business Day we receive the first Valid Claim from any one Beneficiary. |
• | their portion of the Guaranteed Death Benefit Value determined at the end of the Business Day we receive the first Valid Claim from any one Beneficiary, or |
• | their portion of the Contract Value determined at the end of the Business Day during which we receive his or her Valid Claim. |
• | If a Determining Life dies before you, we do not pay a death benefit to the Beneficiary(s) but we may increase the Contract Value if the Traditional Death Benefit or Maximum Anniversary Value Death Benefit are still in effect. At the end of the Business Day we receive due proof of a Determining Life’s death we increase the Contract Value to equal the Guaranteed Death Benefit Value if greater, and your selected death benefit ends. We allocate any Contract Value increase to the Allocation Options according to your Purchase Payment default instructions. |
• | Upon your death your Beneficiary(s) receive the Contract Value determined at the end of the Business Day during which we receive each Beneficiary’s Valid Claim. |
• | The Business Day before the Annuity Date. |
• | The Business Day that the Guaranteed Death Benefit Value and Contract Value are both zero. |
• | Upon the death of a Determining Life, the end of the Business Day we receive a Valid Claim from all Beneficiaries if you and the Determining Life are the same individuals, or if you and the Determining Life (Lives) are different individuals and die simultaneously as defined by applicable state law or regulation. |
• | Upon the death of a Determining Life, the end of the Business Day we receive due proof of the Determining Life’s death if you and the Determining Life (Lives) are different individuals and do not die simultaneously. |
• | Upon the death of an Owner (or Annuitant if the Owner is a non-individual), the end of the Business Day we receive the first Valid Claim from any one Beneficiary, if the Owner (or Annuitant) is no longer a Determining Life. |
• | The Business Day the Contract ends. |
We base the Guaranteed Death Benefit Value on the first death of a Determining Life (or Lives). This means that upon the death of an Owner (or Annuitant if the Owner is a non-individual), if a surviving spouse continues the Contract: |
• the Guaranteed Death Benefit Value is no longer available, and |
• if you selected the Maximum Anniversary Value Death Benefit, we no longer assess its 0.20% rider fee. |
Also, if you and the Determining Life (Lives) are different individuals and you die first, the Guaranteed Death Benefit Value is not available to your Beneficiary(s). |
• | upon the surviving spouse’s death their Beneficiary(s) receive the Contract Value determined at the end of the Business Day during which we receive a Valid Claim from each Beneficiary. |
Type of Contract | Persons and Entities that can buy the Contract |
IRA | Must have the same individual as Owner and Annuitant. |
Roth IRA | Must have the same individual as Owner and Annuitant. |
Simplified Employee Pension (SEP) IRA | Must have the same individual as Owner and Annuitant. |
Certain Code Section 401 Plans | A qualified retirement plan is the Owner and the Annuitant must be an individual. We may determine which types of qualified retirement plans are eligible to purchase this Contract. |
Inherited IRA and Inherited Roth IRA | Must have the same individual as Owner and Annuitant. The deceased owner of the previously held tax-qualified arrangement will also be listed in the titling of the Contract. |
• | Taxes on earnings are deferred until you take money out. Non-Qualified Contracts owned by corporations or partnerships do not receive income tax deferral on earnings. |
• | When you take money out of a Non-Qualified Contract, earnings are generally subject to federal income tax and applicable state income tax. All pre-tax money distributed from Qualified Contracts are subject to federal and state income tax, but qualified distributions from Roth IRA Contracts are not subject to federal income tax. This prospectus does not address specific state tax laws. You should discuss state taxation with your tax adviser. |
• | Taxable distributions are subject to an ordinary income tax rate, rather than a capital gains rate. |
• | Distributions from Non-Qualified Contracts are considered investment income for purposes of the Medicare tax on investment income. Thus, in certain circumstances, a 3.8% tax may apply to some or all of the taxable portion of distributions (e.g. earnings) to individuals whose income exceeds certain threshold amounts ($200,000 for filing single, $250,000 for married filing jointly and $125,000 for married filing separately.) Please consult a tax advisor for more information. |
• | If you take partial withdrawals from your Non-Qualified Contract, the withdrawals are generally taxed as though you were paid taxable earnings first, and then as a non-taxable return of Purchase Payments. |
• | If you annuitize your Non-Qualified Contract and receive a stream of Annuity Payments, you receive the benefit of the exclusion ratio. The exclusion ratio is a calculation that causes a portion of each Annuity Payment to be non-taxable, based upon the percentage of your Contract Value that is from Purchase Payments. Purchase Payments are treated as a non-taxable return of principal, whereas earnings are taxable. |
• | If you take partial withdrawals or annuitize a Qualified Contract, you will be responsible for determining what portion, if any, of the distribution consists of after-tax money. |
• | If you take out earnings before age 59 1⁄2, you may be subject to a 10% additional federal tax, unless you take a lifetime annuitization of your Contract or you take money out in a stream of substantially equal payments over your expected life in accordance with the requirements of the Code. |
• | A pledge, assignment, or ownership change of a Contract may be treated as a taxable event. You should discuss any pledge, assignment, or ownership change of a Contract with your tax adviser. |
• | If you purchase multiple non-qualified deferred annuity contracts from an affiliated group of companies in one calendar year, these contracts are treated as one contract for purposes of determining the tax consequences of any distribution. |
• | Death benefit proceeds from Non-Qualified Contracts are taxable to the beneficiary as ordinary income to the extent of any earnings. Death benefit proceeds must be paid out in accordance with the requirements of the Code. |
• | Depending upon the type of Qualified Contract you own, required minimum distributions (RMDs) must be satisfied when you reach a certain age. If you enroll in our minimum distribution program, we make RMD payments to you that are designed to meet this Contract’s RMD requirements. |
• | When you take money out of a Contract, we may deduct premium tax that we pay on your Contract. This tax varies from 0% to 3.5%, depending on your state. Currently, we pay this tax and do not pass it on to you. |
• | you might have to pay a withdrawal charge on your previous contract, |
• | 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. |
• | overhead, |
• | legal fees, |
• | accounting fees, |
• | Financial Professional training, |
• | compensation for the ALFS management team, and |
• | other expenses associated with the Contracts. |
• | marketing services and increased access to their Financial Professionals; |
• | sales promotions relating to the Contracts; |
• | costs associated with sales conferences and educational seminars; |
• | the cost of client meetings and presentations; and |
• | other sales expenses incurred by them. |
• | issuance and maintenance of the Contracts, |
• | maintenance of Owner records, and |
• | routine customer service including: |
– | processing of Contract changes, |
– | processing withdrawal requests (both partial and total), and |
– | processing requests for fixed annuity payments. |
• | Walter R. White, Director, President and Chief Executive Officer |
• | William E. Gaumond, Director, Senior Vice President, Chief Financial Officer and Treasurer |
• | Thomas P. Burns, Senior Vice President, Chief Distribution Officer* |
• | Neil H. McKay, Senior Vice President, Chief Actuary |
• | Gretchen Cepek, Senior Vice President, General Counsel and Secretary |
* | Mr. Burns resigned his position as Senior Vice President, Chief Distribution Officer on March 31, 2019, and was replaced April 1, 2019, by Mr. Thomes. |
• | providing total compensation opportunities that are competitive with the levels of total compensation available at the large diversified financial services companies with which Allianz Life most directly competes in the marketplace; |
• | setting performance metrics and objectives for variable compensation arrangements that reward executives for attaining both annual targets and medium-range and long-term business objectives, thereby providing individual executives with the opportunity to earn above-average compensation by achieving above-average results; |
• | establishing equity-based arrangements that align executives’ financial interests with those of Allianz SE by ensuring executives have a material financial stake in the equity value of Allianz SE and the business success of its affiliates; and |
• | structuring compensation packages and outcomes to foster internal pay equity. |
Compensation Element | Description | Objective |
Base Salary | Fixed rate of pay that compensates employees for fulfilling their basic job responsibilities. For NEOs, increases are generally provided in the case of a significant increase in responsibilities or a significant discrepancy versus the market. | Attract and retain high-caliber leadership. |
Annual Incentive Plan | Incentive compensation that promotes and rewards the achievement of annual performance objectives through awards under the Allianz Life Annual Incentive Plan (“AIP”). | • Link compensation to annual performance results. • Attract and motivate high-caliber leadership. • Align the interests of NEOs and our stockholder. |
Long-Term Incentives | Incentive compensation that promotes and rewards the achievement of long-term performance objectives through awards under the
Allianz Life Long-Term Performance Unit Plan (“ALTPUP”). Allianz Life’s Chief Executive Officer, Walter R. White, is eligible to receive annual awards through the Allianz SE Mid-Term Bonus Plan instead of the ALTPUP. |
• Link compensation to annual and multi-year performance results. • Motivate and retain high-caliber leadership with multi-year vesting. • Align the interests of NEOs and our stockholder. |
Performance-Based Equity Incentives | Incentive compensation through restricted stock unit awards made under the Allianz Equity Incentive Plan (“AEI”) that promotes and rewards the achievement of senior executive officers. | • Retain high-caliber leadership with multi-year vesting. • Align the interests of NEOs and our stockholder. |
Severance Arrangements | Severance payments to employees, including NEOs, under certain company-initiated termination events. | Compensate employees generally for situations where the employee’s employment is involuntarily terminated in a qualifying termination of employment. |
Perquisites-Benefits | Perquisites provided to our NEOs include employer matching contributions to the NEOs’ accounts in the 401(k) plan and may also include the payment of life insurance premiums, relocation reimbursements, and reimbursements for financial planning, tax preparation services, and spousal travel expenses. | Provide market competitive total compensation package. |
• | In general, establish the compensation philosophy and strategy of Allianz Life and oversee the development and implementation of compensation, benefit and perquisite programs for corporate executives consistent with the principles of ensuring that leadership is compensated effectively in a manner consistent with the stated compensation strategy, internal equity considerations, competitive practices, shareholder interests, and the requirements of any applicable regulatory bodies in order to attract and retain high-quality leadership. |
• | Review and approve the establishment of, or material modification to, any executive incentive compensation plans or programs for Allianz Life. |
• | Review and approve any special benefits, perquisites or compensation contracts in effect for, or offered to, any prospective, current or former Allianz Life employee, regardless of the employee’s level or assignment within Allianz Life. Such benefits and perquisites are those that are unusual or different than the benefits offered to all similarly-situated employees. |
• | Review and approve any employment agreements or any severance, change in control or similar termination arrangements or agreements proposed to be made with any prospective, current or former employee of Allianz Life. This does not include special termination agreements, separation or settlement agreements negotiated in connection with and at the time of termination of an executive’s employment. |
• | Oversee Allianz Life’s compliance with regulations with respect to compensation matters and ensure adherence to the set principles and standards of the Allianz Group Rewards Framework and German regulations. |
• | evaluating the compensation data from industry groups, national executive pay surveys and other sources for the NEOs and other executive officers as appropriate; |
• | gathering and correlating performance ratings and reviews for individual executive officers, including the NEOs; |
• | reviewing executive compensation recommendations against appropriate market data and for internal consistency and equity; and |
• | reporting to, and answering requests for, information from the Compensation Committee. |
• | reward the performance of participants who have made significant contributions to the achievement of annual goals and objectives; |
• | provide an incentive that will encourage future superior individual performance; and |
• | encourage the retention of employees who have demonstrated exceptional performance and/or are anticipated to significantly contribute to the long-term success of Allianz Life. |
• | reward the performance of participants who have made significant contributions to the achievement of their company’s annual goals and objectives, |
• | provide an incentive that will encourage future superior individual performance, and |
• | encourage the retention of employees who have demonstrated exceptional performance and/or are anticipated to significantly contribute to the long-term success of their company. |
Name and Principal Position (a) |
Year (b) |
Salary (c) |
Bonus (d) |
Stock Awards (e)(1) |
Option Awards (f) |
Non-Equity Incentive Plan Compensation (g)(2), (3) |
Change in Pension Value and Nonqualified Deferred Compensation Earnings (h) |
All Other Compensation (i)(4) |
Total (j) |
Walter R. White President and Chief Executive Officer |
2019 | $865,100 | N/A | $921,332 | N/A | $1,842,663 | N/A | $21,873 | $3,650,968 |
William E. Gaumond Senior Vice President, Chief Financial Officer |
2019 | $444,125 | N/A | $270,472 | N/A | $536,947 | N/A | $21,380 | $1,272,924 |
Thomas P. Burns Senior Vice President, Chief Distribution Officer |
2019 | $595,000 | N/A | $353,430 | N/A | $472,430 | N/A | $36,329 | $1,457,189 |
Neil H. McKay Senior Vice President, Chief Actuary |
2019 | $500,000 | N/A | $304,500 | N/A | $604,500 | N/A | $26,215 | $1,435,215 |
Gretchen Cepek Senior Vice President, General Counsel and Secretary |
2019 | $436,000 | N/A | $248,520 | N/A | $466,520 | N/A | $21,134 | $1,172,174 |
(1) | Represents the grant date fair value of the RSUs issued pursuant to the AEI. The RSUs vest over a four-year period. The RSUs issued in 2020 for the 2019 performance year have a March 2023 exercise date. The grant price of the RSUs was the arithmetic average of the closing prices of an Allianz SE share in the electronic cash market trading system Xetra (or any successor system) on that day and the nine immediately preceding trading days, less the present value of dividends expected to be paid on one Allianz SE share over the vesting period, and less the fair value of the |
payout restrictions deriving from the vesting period and the payout cap. These numbers show the amount realized for financial reporting purposes as calculated in accordance with the FASB ASC Topic 718. Under FASB ASC Topic 718, the grant date fair value is calculated using the closing market price of the common stock of Allianz SE on the date of grant, which is then recognized over the requisite service period of the award. | |
(2) | Includes the following payments and grants made pursuant to the AIP and the ALTPUP. |
Name | Year | Payments made pursuant to the AIP |
Grants made pursuant to the ALTPUP(3) |
Walter R. White | 2019 | $921,332 | $921,332 |
William E. Gaumond | 2019 | $270,472 | $266,475 |
Thomas P. Burns | 2019 | $353,430 | $119,000 |
Neil H. McKay | 2019 | $304,500 | $300,000 |
Gretchen Cepek | 2019 | $248,520 | $218,000 |
(3) | Walter R. White, as President and Chief Executive Officer, participates in the global Allianz SE Mid-Term Bonus Program rather than the ALTPUP. |
(4) | The following table provides additional details regarding compensation found in the “All Other Compensation” column. |
Name | Year | Spousal Travel(5) |
Milestone/ Anniversary/ Recognition(6) |
Life Insurance Premiums |
Employer Match to 401(k) Plan |
ASAAP Contribution(7) |
Total |
Walter R. White | 2019 | $138 | -- | $1,110 | $20,625 | -- | $21,873 |
William E. Gaumond | 2019 | -- | -- | $755 | $18,500 | $2,125 | $21,380 |
Thomas P. Burns | 2019 | $15,127 | -- | $577 | $20,625 | -- | $36,326 |
Neil H. McKay | 2019 | $4,702 | -- | $888 | $20,625 | -- | $26,215 |
Gretchen Cepek | 2019 | -- | -- | $509 | $20,625 | -- | $21,134 |
(5) | Represents reimbursement or payments made to defray the costs of a spouse’s travel. |
(6) | Represents Milestone Anniversary Program, which pays a bonus at three and five year anniversaries, and then every five years thereafter. |
(7) | Represents company matching contribution to the Allianz Supplemental Asset Accumulation Plan for deferrals in excess of IRS compensation limit. |
Name (a) |
Grant Date (b) |
Estimated Future Payouts Under Non-Equity Incentive Plan Awards(1),(2) |
Estimated Future Payouts Under Equity Incentive Plan Awards(3),(4) |
||||
Threshold ($) (c) |
Target ($) (d) |
Maximum ($) (e) |
Threshold ($) (f) |
Target ($) (g) |
Maximum ($) (h) |
||
Walter R. White | 3/1/2020 | ||||||
RSUs (under AEI) | $0 | $865,100 | $4,282,245 | ||||
AIP Award | $0 | $865,100 | $1,427,415 | ||||
Midterm Bonus Plan | $0 | $865,100 | $1,427,415 | ||||
William E. Gaumond | 3/1/2020 | ||||||
RSUs (under AEI) | $0 | $266,475 | $1,319,051 | ||||
AIP Award | $0 | $266,475 | $532,950 | ||||
ALTPUP Award | $0 | $266,475 | $532,950 | ||||
Thomas P. Burns | 3/1/2020 | ||||||
RSUs (under AEI) | $0 | $357,000 | $1,767,150 | ||||
AIP Award | $0 | $357,000 | $714,000 | ||||
ALTPUP Award | $0 | $357,000 | $714,000 | ||||
Neil H. McKay | 3/1/2020 | ||||||
RSUs (under AEI) | $0 | $300,000 | $1,485,000 | ||||
AIP Award | $0 | $300,000 | $600,000 | ||||
ALTPUP Award | $0 | $300,000 | $600,000 | ||||
Gretchen Cepek | 3/1/2020 | ||||||
RSUs (under AEI) | $0 | $218,000 | $1,079,100 | ||||
AIP Award | $0 | $218,000 | $436,000 | ||||
ALTPUP Award | $0 | $218,000 | $436,000 |
(1) | The target and maximum columns show the target award and maximum award for 2019 for each NEO under the AIP. There is no threshold amount for any participant in the AIP. The actual 2019 awards granted to the NEOs are listed in the Non-Equity Incentive Compensation column of the Summary Compensation Table. AIP target and maximum awards are a pre-designated percentage of base salary determined at the executive’s level. |
(2) | The target and maximum columns show the target award and maximum award for 2019 for each NEO under the ALTPUP. Under the ALTPUP, all awards are discretionary. To the extent that awards are made, the minimum amount of an award will equal at least 50% of the target amount as determined by the Compensation Committee (or with respect to “principal officers” for purposes of the NEC Committee’s duties, the NEC Committee with final approval of the Board). The actual 2019 awards granted to the NEOs are listed in the Non-Equity Incentive Compensation column of the Summary Compensation Table. ALTPUP target and maximum awards are a pre-designated percentage of base salary determined at the executive’s level. |
(3) | RSUs have a vesting schedule as disclosed in the footnotes to the Summary Compensation Table. See “Outstanding Equity Awards at December 31, 2019” for disclosure regarding the number of RSUs that are unvested as of December 31, 2019. |
(4) | The target and maximum columns show the target award and maximum award for 2019 for each NEO under the AEI. There is no threshold amount for any participant in the AEI. The actual 2019 awards granted to the NEOs are listed in the Stock Awards column of the Summary Compensation Table. |
Name (a) |
RSUs | |||
Number of RSUs That Have Not Vested (g)(1), (2) |
Market Value of RSUs That Have Not Vested (h)(3) |
Equity Incentive Plan Awards: Number of Unearned RSUs That Have Not Vested (i) |
Equity Incentive Plan Awards: Market or Payout Value of Unearned RSUs That Have Not Vested (j) |
|
Walter R. White | N/A | N/A | ||
6,364 | $1,277,064 | |||
10,097 | $2,026,165 | |||
8,161 | $1,637,668 | |||
7,030 | $1,410,710 | |||
William E. Gaumond | N/A | N/A | ||
679 | $136,255 | |||
721 | $144,683 | |||
1,452 | $291,373 | |||
2,039 | $409,166 | |||
Thomas P. Burns | N/A | N/A | ||
3,151 | $632,311 | |||
3,714 | $745,288 | |||
3,073 | $616,659 | |||
2,603 | $522,344 | |||
Neil H. McKay | N/A | N/A | ||
2,586 | $518,933 | |||
3,536 | $709,569 | |||
2,550 | $511,709 | |||
2,203 | $442,076 | |||
Gretchen Cepek | N/A | N/A | ||
1,650 | $331,106 | |||
2,337 | $468,966 | |||
1,917 | $384,684 | |||
1,538 | $308,630 |
(1) | Represents unvested RSUs issued pursuant to the AEI. RSUs issued under the AEI during 2019 are subject to a four-year vesting period from the grant date. At the end of the respective vesting period, the RSUs are exercised uniformly for all participants, provided they remain employed by Allianz Life or terminate after retirement or early retirement eligibility, or under certain other circumstances. Vesting and exercise may accelerate if a participant leaves employment under other “good leaver” circumstances set forth in the AEI. |
(2) | For each of the NEOs, the number of RSUs listed on the first line were exercised in 2020, the RSUs listed on the second line will exercise in 2021, the RSUs listed on the third line will exercise in 2022, and the RSUs listed on the fourth line will exercise in 2023. |
(3) | Based on an assumed stock price of $200.67 per share, which was the arithmetic average of the closing prices of an Allianz SE share in the electronic cash market trading system Xetra (or any successor system) on December 28, 2019 and the nine immediately preceding trading days, converted from Euros into U.S. dollars. |
Name | Option Awards | Stock Awards | ||
Number of Shares Acquired on Exercise (#) |
Value Realized on Exercise ($) |
Number of Shares Acquired on Vesting (#) |
Value Realized on Vesting ($)(1) |
|
Walter R. White | N/A | N/A | 7,927 | $1,859,358 |
William E. Gaumond | N/A | N/A | 1,559 | $365,679 |
Thomas P. Burns | N/A | N/A | 3,723 | $873,267 |
Neil H. McKay | N/A | N/A | 3,180 | $745,901 |
Gretchen Cepek | N/A | N/A | 1,780 | $417,517 |
(1) | Represents Allianz SE RSUs that were exercised during 2019 pursuant to the AEI. Amounts realized were paid in cash. |
NEOs | Lump Sum Payment |
Walter R. White | N/A(1) |
William E. Gaumond | $666,188 |
Thomas P. Burns | $892,500 |
Neil H. McKay | $750,000 |
Gretchen Cepek | $654,000 |
Name | Fees Earned or Paid in Cash ($)(1) |
Stock Awards ($) |
Option Awards ($) |
Non-Equity Incentive Plan Compensation ($) |
Change in Pension Value and Nonqualified Deferred Compensation Earnings |
All Other Compensation |
Total ($) |
(a) | (b) | (c) | (d) | (e) | (f) | (g) | (h) |
Jacqueline Hunt(2) Chair of the Board |
N/A | N/A | N/A | N/A | N/A | N/A | N/A |
Walter R. White(3) President and Chief Executive Officer |
N/A | N/A | N/A | N/A | N/A | N/A | N/A |
William E. Gaumond(3) Senior Vice President, Chief Financial Officer and Treasurer |
N/A | N/A | N/A | N/A | N/A | N/A | N/A |
Anna Sophie Herken(3) Non-Independent Director |
N/A | N/A | N/A | N/A | N/A | N/A | N/A |
Ronald M. Clark Independent Director |
$40,000 | N/A | N/A | N/A | N/A | N/A | $40,000 |
Kevin E. Walker Independent Director |
$40,000 | N/A | N/A | N/A | N/A | N/A | $40,000 |
Udo Frank Independent Director |
$55,000 | N/A | N/A | N/A | N/A | N/A | $55,000 |
(1) | Represents cash compensation provided to our independent directors for the year ended December 31, 2019. |
(2) | Mses. Hunt and Herken did not receive any compensation for their services as directors since they are not independent directors. |
(3) | As employee directors, Messrs. White and Gaumond do not receive any compensation for their service as directors. The compensation Messrs. White and Gaumond receive as executive officers of Allianz Life is disclosed in the Summary Compensation Table as set forth herein. |
• | Difficult Economic Conditions. Our financial condition is materially affected by conditions in the global capital markets and the economy generally. During an economic downturn, the demand for our financial insurance products and services could be adversely affected. In addition, an economic downturn could cause the number and amount of surrenders and withdrawals under our insurance products to increase significantly, and owners of our insurance products may choose to defer making purchase payments or paying insurance premiums or stop them altogether. |
• | Unfavorable Interest Rate Environments. During periods of declining interest rates, we may experience financial losses as the spread between interest rates that we credit to customers under our insurance products and returns on our investments tighten. During periods of increasing interest rates, we may experience financial losses due to increases in surrenders and withdrawals under our insurance products as our customers choose to forgo insurance protection in favor of potentially higher returns. Although we take measures to manage economic risks associated with different interest rate environments, we may not be able to fully mitigate those risks. |
• | Losses on Fixed Maturity Investments. Our fixed maturity investments are subject to interest rate risk and credit risk. Interest rate risk refers to how the values of our fixed maturity investments fluctuate in response to changes in market interest rates. Increases and decreases in prevailing interest rates generally result in decreases and increases, respectively, in the values of our fixed maturity investments. Credit risk refers to the risk that a counterparty will default on its commitments to us under a fixed maturity investment. See “Defaults by Counterparties” below. |
• | Losses on Equity Investments. Our equity investments are generally valued based on quoted market prices and are subject to market risk. Market risk refers to how market prices for equity investments are subject to fluctuation. A downward fluctuation in the market price for an equity investment could result in losses upon the sale of that investment. Fluctuations in market prices may result from, among other things, actual or perceived changes in the attractiveness of specific investments or in general market conditions. |
• | Losses upon the Sale of Illiquid Investments. We hold certain investments that may lack liquidity, such as privately placed fixed maturity investments, mortgage loans, collateralized debt obligations, commercial mortgage-backed securities, equity real estate and limited partnership interests. Although we seek to minimize the likelihood that we would need to sell illiquid investments, if we were required to liquidate these investments on short notice, we may have difficulty doing so and may be forced to sell them for less than their fair value. |
• | Loss of Market Share to Competitors. There is strong competition among insurers, banks, brokerage firms and other financial institutions and providers seeking clients for the types of products and services that we provide. A loss of market share to our competitors could result in financial losses to our business. Our ability to successfully compete is dependent on numerous factors, some of which include the successful implementation of our business strategy, our financial strength, the attractiveness of our products and services, our relationships with distributors, and our reputation. Our ability to compete may also be hindered if our competitors obtain or seek to enforce intellectual property rights against us, or if we are otherwise precluded from offering products or services that are in demand. Our ability to compete may also be hindered if we are not able to protect or enforce our own intellectual property rights. |
• | Defaults by Counterparties. Third-parties that owe us money, securities, or other assets may not fulfill their obligations to us. These parties may include issuers of investments that we may hold, borrowers under loans that we may hold or extend, counterparties under swap and other derivative contracts and other third-parties (e.g., customers, trading counterparties, brokers, dealers, banks, investment funds, clearing agents, exchanges and clearing houses). In addition, with respect to secured transactions, the risk of default may be exacerbated when the collateral held by us cannot be liquidated or is liquidated at a price that is not sufficient to cover the full amount owed to us. A party may default on its obligations for a variety of reasons, including bankruptcy, lack of liquidity, downturns in the economy or real estate market and operational failure. General economic conditions and trends may also result in increased defaults. |
• | Impairments of Other Financial Institutions. We routinely execute transactions with counterparties in the financial services industry, including brokers, dealers, commercial banks, investment banks, insurers, reinsurers and other investment and financial institutions. A disruption to, or decline in the financial condition of, such financial institutions may expose us to financial losses. |
• | Payments through Guaranty Associations. When an insurance company becomes insolvent, state insurance guaranty associations have the right to assess other insurance companies doing business in their state for funds to pay obligations to policyholders of the insolvent company, up to the state-specified limit of coverage. The future failure of a large life, health or annuity insurer could trigger assessments which we would be obligated to pay. Further, amounts for historical insolvencies may be assessed over many years, and there can be significant uncertainty around the total obligation for a given insolvency. |
• | Ineffectiveness of Risk Management Policies. Our risk management policies and procedures intended to identify, monitor and manage economic risks may not be fully effective at mitigating our risk exposure in all market environments or against all types of risk. This could cause us to incur investment losses or cause our hedging and other risk management strategies to be ineffective. |
• | reductions in new sales of insurance products, annuities and other investment products; |
• | increases in our cost of capital or limitations on our access to sources of capital; |
• | harm to our relationships with distributors and sales specialists; |
• | material increases in the number or amount of surrenders and withdrawals under our insurance products; |
• | pressure on us to reduce prices or increase crediting rates for many of our insurance products; and |
• | harm to our ability to obtain reinsurance or obtain reasonable pricing for reinsurance. |
• | training and educating our employees regarding our obligations relating to confidential information; |
• | monitoring changes in state or federal privacy and compliance requirements; |
• | drafting appropriate contractual provisions into any contract that raises proprietary and confidentiality issues; |
• | maintaining secure storage facilities for tangible records; |
• | limiting access to electronic information; and |
• | in the event of a security breach, providing credit monitoring or other services to affected customers. |
• | From you, either directly or through our financial professionals. This may include information provided on your insurance application or other forms you may complete. The information we collect includes, but is not limited to, your name, social security number, address, telephone number and e-mail address. |
• | From others, through the process of issuing a policy or handling a claim. This may include information from consumer reporting agencies and medical or accident reports. |
• | From your doctor or during a home visit by a health care professional. This may include your health records gathered with your written consent. |
• | From your relationship with us. For example, this may include the number of years you have been a customer or the types of products you have purchased. |
• | From data brokers that collect publicly available information about you. This includes household information, financial transactions, and social media activity. |
• | With people and entities when we have your consent to share your information. |
• | With our affiliates and other third parties in order to process your application, or administer or service your policy. |
• | With consumer reporting agencies to obtain a medical report, credit report, or motor vehicle report. These reports are used to decide eligibility for a policy or to process transactions you request. |
• | With our financial professionals so that they can service your policy. They may also inform you of other Allianz products and services that may be of interest to you. |
• | With health care providers in order to process your claim. |
• | As required or otherwise permitted by law. This may include sharing information with state insurance agencies, law enforcement, and other government officials. We may also share your information to respond to subpoenas, court orders and other legal requests. |
• | With research groups to conduct studies on our business to improve the products and services we offer. |
• | To inform you of products and services that may be of interest to you. These communications may be made by us, our financial professionals, or through third parties. |
• | With our affiliates so they can market their products and services to you. State insurance laws do not allow you to restrict this disclosure. |
Allianz Life as Custodian
|
3 |
Legal Opinions
|
3 |
Distributor
|
3 |
Administrative Service Fees
|
3 |
Federal Tax Status
|
4 |
Annuity Contracts in General
|
4 |
Taxation of Annuities in General
|
4 |
Qualified Contracts
|
4 |
Purchasing a Qualified Contract
|
6 |
Distributions-Qualified Contracts
|
6 |
Distributions-Non-Qualified Contracts
|
8 |
Required Distributions
|
9 |
Diversification
|
9 |
Owner Control
|
9 |
Contracts Owned by Non-Individuals
|
9 |
Annuity Purchases by Nonresident Aliens and Foreign Corporations
|
9 |
Income Tax Withholding
|
10 |
Multiple Contracts
|
10 |
Partial 1035 Exchanges
|
10 |
Assignments, Pledges and Gratuitous Transfers
|
10 |
Death Benefits
|
10 |
Spousal Continuation and the Federal Defense of Marriage Act (DOMA)
|
11 |
Federal Estate Taxes
|
11 |
Generation-Skipping Transfer Tax
|
11 |
Foreign Tax Credits
|
11 |
Possible Tax Law Changes
|
11 |
Annuity Payments
|
12 |
Annuity Payment Options
|
12 |
Appendix – Death of the Owner and/or Annuitant
|
13 |
• | sponsor, endorse, sell or promote Allianz products. |
• | recommend that any person invest in Allianz products or any other securities. |
• | have any responsibility or liability for or make any decisions about the timing, amount or pricing of Allianz products. |
• | have any responsibility or liability for the administration, management or marketing of Allianz products. |
• | consider the needs of Allianz products or the owners of Allianz products in determining, composing or calculating the EURO STOXX 50 or have any obligation to do so. |
• | STOXX, Deutsche Börse Group and their licensors, research partners or data providers do not give any warranty, express or implied, and exclude any liability about: |
• | The results to be obtained by Allianz products, the owner of Allianz products or any other person in connection with the use of the EURO STOXX 50 and the data included in the EURO STOXX 50; |
• | The accuracy, timeliness, and completeness of the EURO STOXX 50 and its data; |
• | The merchantability and the fitness for a particular purpose or use of the EURO STOXX 50 and its data; |
• | The performance of Allianz products generally; |
• | STOXX, Deutsche Börse Group and their licensors, research partners or data providers give no warranty and exclude any liability, for any errors, omissions or interruptions in the EURO STOXX 50 or its data; |
• | Under no circumstances will STOXX, Deutsche Börse Group or their licensors, research partners or data providers be liable (whether in negligence or otherwise) for any lost profits or indirect, punitive, special or consequential damages or losses, arising as a result of such errors, omissions or interruptions in the EURO STOXX 50 or its data or generally in relation to Allianz products, even in circumstances where STOXX, Deutsche Börse Group or their licensors, research partners or data providers are aware that such loss or damage may occur. |
(i) | any Index gains during the Term subject to the Precision Rate or Cap, and |
(ii) | either any Index losses greater than the Buffer or Index losses down to the Floor. |
(a) | change in Proxy Value = (current Proxy Value – beginning Proxy Value) |
(b) | proxy interest = beginning Proxy Value x (1 – time remaining during the Term) |
• The iShares® MSCI Emerging Markets ETF first became available to newly issued Contract on April 29, 2019, and became available to existing Contracts on the first Index Anniversary that occurred on or after August 20, 2019. For more information, please see Appendix G. |
• The Index Performance Strategy 3-year Term Index Options were not available before [date to be added by amendment prior to effectiveness]. Therefore, no Buffers or Caps for these Index Options are included here. |
The S&P 500® Index was the only Index available with the Index Protection Strategy prior to May 1, 2018. The Index Protection Strategy with the Russell 2000® Index, Nasdaq-100® Index and EURO STOXX 50® first became available to newly issued Contracts on May 1, 2018, and became available to existing Contracts on the first Index Anniversary that occurred on or after June 4, 2018. For more information, please see Appendix G. |
Indexes: | S&P 500® Index | Russell 2000® Index | Nasdaq-100® Index | EURO STOXX 50® | iShares® MSCI Emerging Markets ETF | |||||||||||||||
DPSCs | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | ||||||||||
Initial DPSC | 3.75% | 4.75% | NA | NA | NA | NA | NA | NA | NA | NA | ||||||||||
1st Anniversary Renewal DPSC | 4.00% | 5.10% | 4.10% | 5.20% | 5.20% | 6.40% | 4.10% | 5.20% | NA | NA | ||||||||||
2nd Anniversary Renewal DPSC* | 4.10% | 4.20% | 4.20% | 4.20% | 4.20% | 4.20% | 5.30% | 5.40% | 4.40% | 4.50% |
* | The second Anniversary Renewal DPSCs for the S&P 500® Index, Russell 2000® Index, Nasdaq-100® Index and EURO STOXX 50® are for a partial period of May 23, 2017 through July 4, 2017. The second Anniversary Renewal DPSCs for the iShares® MSCI Emerging Markets ETF are for a partial period of June 3, 2017 through July 4, 2017. |
Indexes: | S&P 500® Index | Russell 2000® Index | Nasdaq-100® Index | EURO STOXX 50® | iShares® MSCI Emerging Markets ETF | |||||||||||||||
DPSCs | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | ||||||||||
Initial DPSC* | 3.75% | 5.40% | 4.20% | 5.50% | 4.10% | 5.50% | 5.20% | 7.10% | NA | NA | ||||||||||
1st Anniversary Renewal DPSC** | 4.00% | 4.20% | 4.00% | 4.20% | 4.10% | 4.20% | 5.30% | 5.60^ | 4.40% | 4.50% |
* | The initial DPSCs for the Russell 2000® Index, Nasdaq-100® Index and EURO STOXX 50® are for a partial period of May 1, 2018 through January 1, 2019. |
** | The first Anniversary Renewal DPSCs for the S&P 500® Index, Russell 2000® Index, Nasdaq-100® Index and EURO STOXX 50® are for a partial period offrom January 3, 2018 through July 2, 2018. The first Anniversary Renewal DPSCs for the iShares® MSCI Emerging Markets ETF are for a partial period of June 3, 2018 through July 2, 2018. |
Indexes: | S&P 500® Index | Russell 2000® Index | Nasdaq-100® Index | EURO STOXX 50® | iShares® MSCI Emerging Markets ETF | |||||||||||||||
DPSCs | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | ||||||||||
Initial DPSC* | 5.20% | 5.90% | 5.40% | 5.90% | 5.30% | 5.90% | 6.80% | 7.50% | 5.70% | 5.80% |
* | The initial DPSCs for the iShares® MSCI Emerging Markets ETF are for a partial period of April 29, 2019 through July 1, 2019. |
The Index Precision Strategy first became available to newly issued Contracts on November 14, 2017, and became available to existing Contracts on the first Index Anniversary that occurred on or after January 15, 2018. For more information, please see Appendix G. |
Indexes: | S&P 500® Index | Russell 2000® Index | Nasdaq-100® Index | EURO STOXX 50® | iShares® MSCI Emerging Markets ETF | |||||||||||||||
Precision Rates | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | ||||||||||
Initial Precision Rate* | 7.00% | 7.25% | 8.75% | 9.00% | 8.25% | 8.25% | 10.75% | 10.75% | NA | NA | ||||||||||
1st Anniversary Renewal Precision Rate | 7.60% | 9.95% | 8.20% | 10.45% | 8.80% | 11.50% | 11.00% | 12.70% | NA | NA | ||||||||||
2nd Anniversary Renewal Precision Rate** | 8.00% | 8.40% | 9.10% | 9.30% | 9.20% | 9.30% | 11.50% | 11.50% | 10.50% | 10.60% |
* | The initial Precision Rates are for a partial period of November 14, 2017 through January 2, 2018. |
** | The second Anniversary Renewal Precision Rates for the S&P 500® Index, Russell 2000® Index, Nasdaq-100® Index and EURO STOXX 50® are for a partial period of May 23, 2017 through July 4, 2017. The second Anniversary Renewal Precision Rates for the iShares® MSCI Emerging Markets ETF are for a partial period of June 3, 2017 through July 4, 2017. |
Indexes: | S&P 500® Index | Russell 2000® Index | Nasdaq-100® Index | EURO STOXX 50® | iShares® MSCI Emerging Markets ETF | |||||||||||||||
Precision Rates | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | ||||||||||
Initial Precision Rate | 7.05% | 10.20% | 8.30% | 11.00% | 8.35% | 12.10% | 10.75% | 13.80% | NA | NA | ||||||||||
1st Anniversary Renewal Precision Rate* | 8.00% | 9.30% | 9.10% | 9.90% | 9.10% | 11.20% | 11.30% | 12.40% | 10.50% | 10.60% |
* | The first Anniversary Renewal Precision Rates for the S&P 500® Index, Russell 2000® Index, Nasdaq-100® Index and EURO STOXX 50® are for a partial period of January 3, 2018 through July 2, 2018. The first Anniversary Renewal Precision Rates for the iShares® MSCI Emerging Markets ETF are for a partial period of June 3, 2018 through July 2, 2018. |
Indexes: | S&P 500® Index | Russell 2000® Index | Nasdaq-100® Index | EURO STOXX 50® | iShares® MSCI Emerging Markets ETF | |||||||||||||||
Precision Rates | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | ||||||||||
Initial Precision Rate* | 7.05% | 10.20% | 8.30% | 11.00% | 8.35% | 12.10% | 10.75% | 13.80% | NA | NA |
* | The initial Precision Rates for iShares® MSCI Emerging Markets ETF are for a partial period of April 29, 2019 through July 1, 2019. |
Indexes: | S&P 500® Index | Russell 2000® Index | Nasdaq-100® Index | EURO STOXX 50® | iShares® MSCI Emerging Markets ETF | |||||||||||||||
Caps | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | ||||||||||
Initial Cap | 10.50% | 15.00% | 11.75% | 16.00% | 10.00% | 13.50% | 12.25% | 25.00% | NA | NA | ||||||||||
1st Anniversary Renewal Cap | 9.75% | 13.50% | 10.50% | 14.00% | 10.00% | 13.25% | 23.00% | 29.00% | NA | NA | ||||||||||
2nd Anniversary Renewal Cap* | 10.50% | 11.00% | 11.25% | 11.25% | 10.75% | 10.75% | 25.50% | 26.00% | 12.75% | 12.75% |
* | The second Anniversary Renewal Caps for the S&P 500® Index, Russell 2000® Index, Nasdaq-100® Index and EURO STOXX 50® are for a partial period of May 23, 2017 through July 4, 2017. The second Anniversary Renewal Caps for the iShares® MSCI Emerging Markets ETF are for a partial period of June 3, 2017 through July 4, 2017. |
Indexes: | S&P 500® Index | Russell 2000® Index | Nasdaq-100® Index | EURO STOXX 50® | iShares® MSCI Emerging Markets ETF | |||||||||||||||
Caps | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | ||||||||||
Initial Cap | 9.75% | 12.50% | 10.50% | 12.75% | 10.00% | 12.50% | 22.00% | 26.00% | NA | NA | ||||||||||
1st Anniversary Renewal Cap* | 10.50% | 11.50% | 11.25% | 12.00% | 10.75% | 11.00% | 25.50% | 26.50% | 12.75% | 12.75% |
* | The first Anniversary Renewal Caps for the S&P 500® Index, Russell 2000® Index, Nasdaq-100® Index and EURO STOXX 50® are for a partial period of January 3, 2018 through July 2, 2018. The first Anniversary Renewal Caps for the iShares® MSCI Emerging Markets ETF are for a partial period of June 3, 2018 through July 2, 2018. |
Indexes: | S&P 500® Index | Russell 2000® Index | Nasdaq-100® Index | EURO STOXX 50® | iShares® MSCI Emerging Markets ETF | |||||||||||||||
Caps | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | ||||||||||
Initial Cap* | 13.25% | 15.25% | 13.25% | 14.25% | 12.75% | 13.50% | 26.50% | 28.00% | 15.25% | 15.75% |
* | The initial Caps for iShares® MSCI Emerging Markets ETF are for a partial period of April 29, 2019 through July 1, 2019. |
Indexes: | S&P 500® Index | Russell 2000® Index | Nasdaq-100® Index | EURO STOXX 50® | iShares® MSCI Emerging Markets ETF | |||||||||||||||
Caps | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | ||||||||||
Initial Cap | 10.25% | 14.50% | 13.50% | 18.50% | 10.25% | 14.00% | 15.75% | 25.50% | NA | NA | ||||||||||
1st Anniversary Renewal Cap | 12.75%% | 17.00% | 13.00% | 17.25% | 13.00% | 17.75% | 24.00% | 31.00% | NA | NA | ||||||||||
2nd Anniversary Renewal Cap* | 12.50% | 13.25% | 13.75% | 14.00% | 13.25% | 13.25% | 26.50% | 26.50% | 15.50% | 15.50% |
* | The second Anniversary Renewal Caps for the S&P 500® Index, Russell 2000® Index, Nasdaq-100® Index and EURO STOXX 50® are for a partial period of January 3, 2017 through July 4, 2017. The second Anniversary Renewal Caps for the iShares® MSCI Emerging Markets ETF are for a partial period of June 3, 2017 through July 4, 2017. |
Indexes: | S&P 500® Index | Russell 2000® Index | Nasdaq-100® Index | EURO STOXX 50® | iShares® MSCI Emerging Markets ETF | |||||||||||||||
Caps | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | ||||||||||
Initial Cap | 11.50% | 16.25% | 14.25% | 16.75% | 12.00% | 17.00% | 24.00% | 28.00% | NA | NA | ||||||||||
1st Anniversary Renewal Cap* | 12.50% | 14.25% | 13.50% | 14.75% | 12.25% | 14.75% | 26.25% | 27.00% | 15.50% | 15.50% |
* | The first Anniversary Renewal Caps for the S&P 500® Index, Russell 2000® Index, Nasdaq-100® Index and EURO STOXX 50® are for a partial period of January 3, 2018 through July 2, 2018. The first Anniversary Renewal Caps for the iShares® MSCI Emerging Markets ETF are for a partial period of June 3, 2018 through July 2, 2018. |
Indexes: | S&P 500® Index | Russell 2000® Index | Nasdaq-100® Index | EURO STOXX 50® | iShares® MSCI Emerging Markets ETF | |||||||||||||||
Caps | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | ||||||||||
Initial Cap* | 14.75% | 17.25% | 15.50% | 17.00% | 14.75% | 18.50% | 27.50% | 29.00% | 19.00% | 19.25% |
* | The initial Caps for iShares® MSCI Emerging Markets ETF are for a partial period of April 29, 2019 through July 1, 2019. |
The Index Performance Strategy with the S&P 500® Index and 3-year Term was not available before [date to be added by amendment prior to effectiveness]. Therefore, no performance for this Index Option will be included here until [date to be added by amendment prior to effectiveness]. For more information, please see Appendix G. |
Index Effective Date | 5/23/2017- 6/5/2017 |
6/6/2017- 7/3/2017 |
7/5/2017- 7/14/2017 |
7/17/2017- 7/31/2017 |
8/1/2017- 9/5/2017 |
9/6/2017- 10/2/2017 |
10/3/2017- 11/6/2017 |
|||||||
Initial DPSC | 3.75% | 3.75% | 3.75% | 4.75% | 4.75% | 3.75% | 3.75% | |||||||
1st Index Year Index Return | 10.12% to 15.40% |
11.29% to 14.71% |
12.50% to 15.09% |
13.28% to 14.89% |
13.61% to 18.57% |
15.54% to 17.16% |
2.33% to 15.42% |
|||||||
1st Index Anniversary Credit | 3.75% | 3.75% | 3.75% | 4.75% | 4.75% | 3.75% | 3.75% | |||||||
1st Anniversary Renewal DPSC | 4.20% | 4.10% | 4.10% | 5.10% | 5.10% | 4.10% | 4.10% | |||||||
2nd Index Year Index Return | -0.09% to 12.01% |
10.42% to 4.10% |
||||||||||||
2nd Index Anniversary Credit | 0% or 4.20% | 4.10% | ||||||||||||
2nd Anniversary Renewal DPSC | 4.20% | 4.10% | 4.30% | 5.30% | 5.20% | 4.30% | ||||||||
3rd Index Year Index Return | ||||||||||||||
3rd Index Anniversary Credit |
Index Effective Date | 11/7/2017- 12/4/2017 |
12/5/2017- 1/2/2018 |
1/3/2018- 2/5/2018 |
2/6/2018- 3/5/2018 |
3/6/2018- 4/2/2018 |
4/3/2018- 4/30/2018 |
5/1/2018- 6/4/2018 |
|||||||
Initial DPSC | 3.75% | 3.75% | 3.75% | 3.85% | 3.90% | 3.95% | 4.20% | |||||||
1st Index Year Index Return | 1.37% to 8.62% |
-12.38% to 2.68% |
-9.77% to 3.35% |
0.51% to 4.92% |
-0.12% to 11.05% |
7.17% to 11.18% |
0.36% to 12.01% |
|||||||
1st Index Anniversary Credit | 3.75% | 0% or 3.75% |
0% or 3.75% |
3.85% | 0% or 3.9% |
3.95% | 4.20% | |||||||
1st Anniversary Renewal DPSC | 4.00% | 4.20% | 4.00% | 4.10% | 4.20% | 4.20% | 4.20% | |||||||
2nd Index Year Index Return | ||||||||||||||
2nd Index Anniversary Credit |
The Index Precision Strategy was not available before November 14, 2017. The Buffer was 10% for all time periods. For Index Anniversaries with a range of Credits, any positive Credit cannot be less than the stated positive number. |
Index Effective Date | 11/14/2017- 12/4/2017 |
12/5/2017- 1/2/2018 |
1/3/2018- 2/5/2018 |
2/6/2018- 3/5/2018 |
3/6/2018- 4/2/2018 |
4/3/2018- 4/30/2018 |
5/1/2018- 6/4/2018 |
|||||||
Initial Precision Rate | 7.00% | 7.25% | 7.25% | 7.05% | 8.70% | 8.35% | 9.95% | |||||||
1st Index Year Index Return | 1.37% to 8.62% |
-12.38% to 2.68% |
-9.77% to 3.35% |
0.51% to 4.92% |
-0.12% to 11.05% |
7.17% to 11.18% |
0.36% to 12.01% |
|||||||
1st Index Anniversary Credit | 7% | -2.38% to 7.25% |
0% or 7.25% |
7.05% | 0% or 8.70% |
8.35% | 9.95% | |||||||
1st Anniversary Renewal Precision Rate | 8.20% | 9.20% | 9.30% | 9.00% | 8.80% | 8.20% | 8.00% | |||||||
2nd Index Year Index Return | ||||||||||||||
2nd Index Anniversary Credit |
Index Effective Date | 6/5/2018- 7/2/2018 |
7/3/2018- 8/6/2018 |
8/7/2018- 9/4/2018 |
9/5/2018- 10/1/2018 |
10/2/2018- 11/5/2018 |
11/6/2018- 12/3/2018 |
||||||
Initial Precision Rate | 8.60% | 8.00% | 8.00% | 8.20% | 8.50% | 8.90% | ||||||
1st Index Year Index Return | 2.57% to 9.03% |
|||||||||||
1st Index Anniversary Credit | 8.60% | |||||||||||
1st Anniversary Renewal Precision Rate | 8.40% | 9.10% | 7.80% | 9.80% | ||||||||
2nd Index Year Index Return | ||||||||||||
2nd Index Anniversary Credit |
Index Effective Date | 5/23/2017- 6/5/2017 |
6/6/2017- 7/3/2017 |
7/5/2017- 7/14/2017 |
7/17/2017- 7/31/2017 |
8/1/2017- 9/5/2017 |
9/6/2017- 10/2/2017 |
10/3/2017- 11/6/2017 |
|||||||
Initial Cap | 11.50% | 12.00% | 12.00% | 15.00% | 15.00% | 12.25% | 10.75% | |||||||
1st Index Year Index Return | 10.12% to 15.40% |
11.29% to 14.71% |
12.50% to 15.09% |
13.28% to 14.89% |
13.61% to 18.57% |
15.54% to 17.16% |
2.33% to 15.42% |
|||||||
1st Index Anniversary Credit | 10.12% to 11.50% |
11.29% to 12.00% |
12.00% | 13.28% to 14.89% |
13.61% to 15.00% |
12.25% | 2.33% to 10.75% |
|||||||
1st Anniversary Renewal Cap | 10.75% | 10.75% | 10.50% | 13.50% | 13.25% | 10.25% | 10.00% | |||||||
2nd Index Year Index Return | -0.09% to 12.01% |
2.57% to 10.42% |
||||||||||||
2nd Index Anniversary Credit | -0.09% to 10.75% |
2.57% to 10.42% |
||||||||||||
2nd Anniversary Renewal Cap | 11.00% | 10.50% | 12.00% | 15.00% | 14.25% | 11.75% | ||||||||
3rd Index Year Index Return | ||||||||||||||
3rd Index Anniversary Credit |
Index Effective Date | 11/7/2017- 12/4/2017 |
12/5/2017- 1/2/2018 |
1/3/2018- 2/5/2018 |
2/6/2018- 3/5/2018 |
3/6/2018- 4/2/2018 |
4/3/2018- 4/30/2018 |
5/1/2018- 6/4/2018 |
|||||||
Initial Cap | 11.00% | 10.50% | 10.25% | 10.50% | 10.00% | 9.75% | 10.75% | |||||||
1st Index Year Index Return | 1.37% to 8.62% |
-12.38% to 2.68% |
-9.77% to 3.35% |
0.51% to 4.92% |
-0.12% to1 1.05% |
7.17% to 11.18% |
0.36% to 12.01% |
|||||||
1st Index Anniversary Credit | 1.37% to 8.62% |
-10.00% to 2.68% |
-9.77% to 3.35% |
0.51% to 4.92% |
-0.12% to 10.00% |
7.17% to 9.75% |
0.36% to 10.75% |
|||||||
1st Anniversary Renewal Cap | 9.75% | 10.50% | 10.75% | 11.00% | 11.50% | 11.00% | 11.00% | |||||||
2nd Index Year Index Return | ||||||||||||||
2nd Index Anniversary Credit |
Index Effective Date | 5/23/2017- 6/5/2017 |
6/6/2017- 7/3/2017 |
7/5/2017- 7/14/2017 |
7/17/2017- 7/31/2017 |
8/1/2017- 9/5/2017 |
9/6/2017- 10/2/2017 |
10/3/2017- 11/6/2017 |
|||||||
Initial Cap | 11.75% | 11.50% | 11.50% | 14.50% | 14.50% | 10.25% | 11.25% | |||||||
1st Index Year Index Return | 10.12% to 15.40% |
11.29% to 14.71% |
12.50% to 15.09% |
13.28% to 14.89% |
13.61% to 18.57% |
15.54% to 17.16% |
2.33% to 15.42% |
|||||||
1st Index Anniversary Credit | 10.12% to 11.75% |
11.29% to 11.50% |
11.50% | 13.28% to 14.50% |
13.61% to 14.50% |
10.25% | 2.33% to 11.25% |
|||||||
1st Anniversary Renewal Cap | 15.50% | 15.00% | 14.00% | 17.00% | 17.00% | 12.75% | 13.00% | |||||||
2nd Index Year Index Return | -0.09% to 12.01% |
2.57% to 10.42% |
||||||||||||
2nd Index Anniversary Credit | 0% to 12.01% | 2.57% to 10.42% |
||||||||||||
2nd Anniversary Renewal Cap | 12.50% | 13.25% | 14.75% | 17.75% | 16.25% | 13.00% | ||||||||
3rd Index Year Index Return | ||||||||||||||
3rd Index Anniversary Credit |
Index Effective Date | 11/7/2017- 12/4/2017 |
12/5/2017- 1/2/2018 |
1/3/2018- 2/5/2018 |
2/6/2018- 3/5/2018 |
3/6/2018- 4/2/2018 |
4/3/2018- 4/30/2018 |
5/1/2018- 6/4/2018 |
|||||||
Initial Cap | 11.50% | 11.50% | 11.50% | 11.50% | 13.75% | 13.25% | 15.50% | |||||||
1st Index Year Index Return | 1.37% to 8.62% |
-12.38% to 2.68% |
-9.77% to 3.35% |
0.51% to 4.92% |
-0.12% to 11.05% |
7.17% to 11.18% |
0.36% to 12.01% |
|||||||
1st Index Anniversary Credit | 1.37% to 8.62% |
-2.38% to 2.68% |
0% to 3.35% |
0.51% to 4.92% |
0% to 11.05% |
7.17% to 11.18% |
0.36% to 12.01% |
|||||||
1st Anniversary Renewal Cap | 13.00% | 13.50% | 13.00% | 14.25% | 12.75% | 12.50% | 12.50% | |||||||
2nd Index Year Index Return | ||||||||||||||
2nd Index Anniversary Credit |
The Alternate Minimum Value is not available to Contracts issued on or after November 18, 2019, in all states except California, Hawaii, Indiana, Montana, Nebraska, Pennsylvania and Rhode Island. |
We use 70% if your Contract was issued in …. | We use 87.5% if your Contract was issued in …. |
• California and Montana on or after July 22, 2019 • New Hampshire on or after June 24, 2019 • any other state on or after April 29, 2019 |
• California and Montana before July 22, 2019 • New Hampshire before June 24, 2019 • any other state before April 29, 2019 |
Crediting Method / Indexes | Availability Restrictions: | |
Index Protection Strategy | – Not available to Contracts issued in Washington or Missouri | |
Index Protection Strategy with the Russell 2000® Index, Nasdaq-100® Index, and EURO STOXX 50® | – These first became available to newly issued Contracts on May 1, 2018, and to inforce Contracts on the first Index Anniversary that occurred on or after June 4, 2018. | |
Index Precision Strategy | – This first became available to newly issued Contracts on November 14, 2017, and to inforce Contracts on the first Index Anniversary that occurred on or after January 15, 2018. | |
iShares® MSCI Emerging Markets ETF with the Index Protection Strategy, Index Precision Strategy, Index Guard Strategy, and Index Performance Strategy | – For Contracts issued in New Hampshire, these first became available to newly issued Contracts on June 24, 2019. – For Contracts issued in California and Montana, these first became available to newly issued Contracts on July 22, 2019. – For Contracts issued in all other states, these first became available to newly issued Contracts on April 29, 2019. – For Contracts issued before April 29, 2019, these first became available to Contracts that have a number starting with AV on the first Index Anniversary that occurred on or after August 20, 2019. |
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Index Performance Strategy with the 3-year Term | – Not available to Contracts issued in New Hampshire or New Jersey. – For Contracts issued in all other states, it first became available to newly issued Contracts on [Date to be added by amendment prior to effectiveness]. – Not currently available to inforce Contracts issued before [Date to be added by amendment prior to effectiveness]. |
CONTRACTS WITHOUT THE INDEX PROTECTION STRATEGY: If in future years the renewal Cap and Precision Rates are not acceptable to you, you will not be able to transfer into the Index Protection Strategy and take advantage of its principal protection. This would subject you to ongoing market risk and you could lose principal and previous earnings. |
ISSUE STATE | FEATURE AND BENEFITS | VARIATION |
California | Assignments, Changes of Ownership and Other Transfers of Contract Rights See section 2 |
We cannot restrict assignments or changes of ownership • We do not change the Determining Life (Lives) following an assignment or ownership change. If you assign the Contract and the Determining Life (Lives) are no longer an Owner (or Annuitant if the Owner is a non-individual) the Traditional Death Benefit or Maximum Anniversary Value Death Benefit may not be available and on the Owner’s death the Beneficiary(s) will only receive the Contract Value. |
Free Look/Right to Examine Period See section 3 |
For Owners age 60 or older (or Annuitants age 60 or older for non-individually owned Contracts), we are required to allocate your initial Purchase Payment to the AZL Government Money Market Fund during the 30 day free look period unless you specify otherwise on the appropriate form. If you want to immediately apply your Purchase Payment to the Index Options or other Variable Options you must opt out of this allocation. If you do not opt out of this allocation to the AZL Government Money Market Fund your Index Effective Date cannot occur until the free look period has ended. | |
Connecticut | Assignments, Changes of Ownership and Other Transfers of Contract Rights See section 2 |
We can only restrict assignments to settlement companies and institutional investors as described in your Contract. • We do not change the Determining Life (Lives) following an assignment or ownership change. If you assign the Contract and the Determining Life (Lives) are no longer an Owner (or Annuitant if the Owner is a non-individual) the Traditional Death Benefit or Maximum Anniversary Value Death Benefit may not be available and on the Owner’s death the Beneficiary(s) will only receive the Contract Value. |
Delaware | Our Unregistered Separate Account See section 11 |
All of the assets backing the Index Precision Strategy, Index Guard Strategy and Index Performance Strategy Index Options are allocated to Separate Account IANA. We do not move assets between the general account and Separate Account IANA for Contracts issued in Delaware. |
Florida | Withdrawal Charges See Fee Tables and section 6 |
The total withdrawal charge on a partial or full withdrawal cannot be greater than 10% of the Contract Value withdrawn. |
Assignments, Changes of Ownership and Other Transfers of Contract Rights See section 2 |
We cannot restrict assignments or changes of ownership • We do not change the Determining Life (Lives) following an assignment or ownership change. If you assign the Contract and the Determining Life (Lives) are no longer an Owner (or Annuitant if the Owner is a non-individual) the Traditional Death Benefit or Maximum Anniversary Value Death Benefit may not be available and on the Owner’s death the Beneficiary(s) will only receive the Contract Value. |
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Purchase Requirements See section 3 |
We can only decline a Purchase Payment if it would cause total Purchase Payments to be more than $1 million, or if it would otherwise violate the Purchase Payment restrictions of your Contract (for example, we do not allow additional Purchase Payments on or after the Annuity Date). | |
When Annuity Payments Begin See section 8 |
The earliest acceptable Annuity Date is one year after the Issue Date. | |
Maryland | Purchase Requirements See section 3 |
We can only decline a Purchase Payment if it would cause total Purchase Payments to be more than $1 million, or if it would otherwise violate the Purchase Payment restrictions of your Contract (for example, we do not allow additional Purchase Payments on or after the Annuity Date). |
ISSUE STATE | FEATURE AND BENEFITS | VARIATION |
Massachusetts | Waiver of Withdrawal Charge Benefit See section 7 |
The waiver of withdrawal charge benefit is not available. |
Mississippi | Purchase Requirements See section 3 |
We do not accept additional Purchase Payments on or after the first Contract Anniversary. We also limit the amount of additional Purchase Payments you can make on or after the first Quarterly Contract Anniversary to the amount of total Purchase Payments we received before the first Quarterly Contract Anniversary. |
Missouri | Our Unregistered Separate Account See section 11 |
All of the assets backing the Index Precision Strategy, Index Guard Strategy and Index Performance Strategy Index Options are allocated to Separate Account IANA. We do not move assets between the general account and Separate Account IANA for Contracts issued in Missouri. |
Montana | Access to Your Money See section 7 |
If you take a partial withdrawal that reduces the Contract Value below $2,000, we contact you by phone and give you the option of modifying your withdrawal request. If we cannot reach you, we process your request as a full withdrawal. |
New Hampshire | Waiver of Withdrawal Charge Benefit See section 7 |
The definition of nursing home is an institution operated in accordance with state law. |
New Jersey | Assignments, Changes of Ownership and Other Transfers of Contract Rights See section 2 |
We cannot restrict assignments or changes of ownership. • We do not change the Determining Life (Lives) following an assignment or ownership change. If you assign the Contract and the Determining Life (Lives) are no longer an Owner (or Annuitant if the Owner is a non-individual) the Traditional Death Benefit or Maximum Anniversary Value Death Benefit may not be available and on the Owner’s death the Beneficiary(s) will only receive the Contract Value. |
Purchase Requirements See section 3 |
The maximum total Purchase Payments that we can accept is $1 million. We can only decline a Purchase Payment if it would cause total Purchase Payments to be more than $1 million, or if it would otherwise violate the Purchase Payment restrictions of your Contract (for example, we do not allow additional Purchase Payments on or after the Annuity Date). | |
Ohio | Assignments, Changes of Ownership and Other Transfers of Contract Rights See section 2 |
We cannot restrict assignments or changes of ownership. • We do not change the Determining Life (Lives) following an assignment or ownership change. If you assign the Contract and the Determining Life (Lives) are no longer an Owner (or Annuitant if the Owner is a non-individual) the Traditional Death Benefit or Maximum Anniversary Value Death Benefit may not be available and on the Owner’s death the Beneficiary(s) will only receive the Contract Value. |
Pennsylvannia | Waiver of Withdrawal Charge Benefit See section 7 |
The waiver is not available if on the Issue Date, an Owner was confined to a nursing home or was already diagnosed with a terminal illness. Also, the nursing home confinement requirement is a total of 90 days within a six month period. These 90 days do not need to be consecutive. |
Assignments, Changes of Ownership and Other Transfers of Contract Rights See section 2 |
We cannot restrict assignments or changes of ownership. • We do not change the Determining Life (Lives) following an assignment or ownership change. If you assign the Contract and the Determining Life (Lives) are no longer an Owner (or Annuitant if the Owner is a non-individual) the Traditional Death Benefit or Maximum Anniversary Value Death Benefit may not be available and on the Owner’s death the Beneficiary(s) will only receive the Contract Value. |
ISSUE STATE | FEATURE AND BENEFITS | VARIATION |
Texas | Purchase Requirements See section 3 |
For Contracts issued on or after April 29, 2019, we do not accept additional Purchase Payments on or after the first Contract Anniversary. |
Access to Your Money See section 7 |
We only treat a partial withdrawal that reduces the Contract Value below $2,000 as a full withdrawal if you have not made an additional Purchase Payment in the past two calendar years. | |
Our Unregistered Separate Account See section 11 |
We hold all assets that you allocate to the Index Precision Strategy, Index Guard Strategy and Index Performance Strategy Index Options that are not invested in the general account in an unregistered, non-unitized, insulated separate account (Separate Account IATX). Separate Account IATX is structured differently from Separate Account IANA. Unlike Separate Account IANA, Separate Account IATX is for the exclusive benefit of persons purchasing a Contract in the State of Texas. Separate Account IATX is insulated from the claims of creditors and Contract purchasers are given priority with regard to Separate Account IATX’s assets over Contract purchasers from other states as well as general creditors. Separate Account IATX was established under Minnesota law for the benefit of Texas Contract purchasers. Separate Account IATX supports our obligations to pay Performance Credits to Texas Contract Owners. Allocations and reallocations to and from the Separate Account IATX are managed in the same manner as Separate Account IANA. Neither Texas Contract purchasers nor these Index Options participate in any way in the performance of assets held in Separate Account IATX. | |
Utah | Purchase Requirements See section 3 |
• For Contracts issued before November 18, 2019: We do not accept additional
Purchase Payments on or after the first Contract Anniversary. • For Contracts issued on or after November 18, 2019: We do not accept additional Purchase Payments on or after the tenth Contract Anniversary. |
Washington | Assignments, Changes of Ownership and Other Transfers of Contract Rights See section 2 |
We cannot restrict assignments or changes of ownership. • We do not change the Determining Life (Lives) following an assignment or ownership change. If you assign the Contract and the Determining Life (Lives) are no longer an Owner (or Annuitant if the Owner is a non-individual) the Traditional Death Benefit or Maximum Anniversary Value Death Benefit may not be available and on the Owner’s death the Beneficiary(s) will only receive the Contract Value. |
Our Unregistered Separate Account See section 11 |
All of the assets backing the Index Precision Strategy, Index Guard Strategy and Index Performance Strategy Index Options are allocated to Separate Account IANA. We do not move assets between the general account and Separate Account IANA for Contracts issued in Washington. | |
Wisconsin | Assignments, Changes of Ownership and Other Transfers of Contract Rights See section 2 |
We cannot restrict assignments or changes of ownership. • We do not change the Determining Life (Lives) following an assignment or ownership change. If you assign the Contract and the Determining Life (Lives) are no longer an Owner (or Annuitant if the Owner is a non-individual) the Traditional Death Benefit or Maximum Anniversary Value Death Benefit may not be available and on the Owner’s death the Beneficiary(s) will only receive the Contract Value. |
Send an application or additional Purchase Payment with a check: |
Send an application or general customer service without a check: |
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REGULAR MAIL | REGULAR MAIL | |
Allianz Life Insurance Company of North America NW5989 P.O. Box 1450 Minneapolis, MN 55485-5989 |
Allianz Life Insurance Company of North America P. O. Box 561 Minneapolis, MN 55440-0561 |
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OVERNIGHT, CERTIFIED, OR REGISTERED MAIL | OVERNIGHT, CERTIFIED, OR REGISTERED MAIL | |
Allianz Life Insurance Company of North America NW5989 1801 Parkview Drive Shoreview, MN 55126 |
Allianz Life Insurance Company of North America 5701 Golden Hills Drive Golden Valley, MN 55416-1297 |
Checks sent to the wrong address for applications or additional Purchase Payments are forwarded to the 1801 Parkview Drive address listed above, which may delay processing. |
Securities and Exchange Commission Registration Fee
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$ 52,139
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Estimated Printing and Filing Costs:
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$ 30,000
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Estimated Accounting Fees:
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$ 75,000
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Estimated Legal Fees:
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$ N/A
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Estimated Miscellaneous Fees:
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$ N/A
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The Bylaws of the Insurance Company provide:
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ARTICLE XI. INDEMNIFICATION OF DIRECTORS, OFFICERS AND EMPLOYEES
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SECTION 1. RIGHT TO INDEMNIFICATION:
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(a)
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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:
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(i)
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a director of the Corporation; or
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(ii)
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acting in the course and scope of his or her duties as an officer or employee of the Corporation; or
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(iii)
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rendering Professional Services at the request of and for the benefit of the Corporation; or
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(iv)
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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").
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(b)
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Notwithstanding the foregoing, no officer, director or employee shall be indemnified pursuant to these bylaws under the following circumstances:
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(i)
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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;
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(ii)
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if a court of competent jurisdiction finally determines that any indemnification hereunder is unlawful;
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(iii)
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for acts or omissions involving intentional misconduct or knowing and culpable violation of law;
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(iv)
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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;
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(v)
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for any transaction for which the Indemnified Person derived an improper personal benefit;
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(vi)
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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;
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(vii)
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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;
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(viii)
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in circumstances where indemnification is prohibited by applicable law;
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(ix)
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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.
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SECTION 2. SCOPE OF INDEMNIFICATION:
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(a)
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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.
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(b)
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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.
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(c)
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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.
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SECTION 3. DEFINITIONS:
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(a)
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"Corporation" for the purpose of Article XI shall mean Allianz Life Insurance Company of North America and all of its subsidiaries.
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(b)
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"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.
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(c)
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"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.
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Insofar as indemnification for liability arising under the Securities Act of 1933 may be permitted for directors and officers or controlling persons of the Insurance Company pursuant to
the foregoing, or otherwise, the Insurance Company has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and, therefore, unenforceable. In the
event that a claim for indemnification against such liabilities (other than the payment by the Insurance Company of expenses incurred or paid by a director, officer or controlling person of the Insurance Company in the successful defense
of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the Company will, unless in the opinion of its counsel the matter has been settled by
controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.
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1.(a)
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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 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.)
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(b)
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Broker-Dealer Agreement (amended and restated) between Allianz Life Insurance Company of North
America and Allianz Life Financial Services, LLC, dated June 1, 2010 incorporated by reference as exhibit EX-99B3b. from Pre-Effective Amendment No. 1 to Form N-4 (File Nos. 333-166408 and 811-05618), electronically filed on September 24,
2010.
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(c)
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The current specimen of the selling agreement between Allianz Life Financial Services, LLC,
the principal underwriter for the Contracts, and retail brokers which offer and sell the Contracts to the public is incorporated by reference as exhibit EX-99.B3.b. from the initial filing on 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.
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3. (a) |
Articles of Incorporation, as amended and restated August 1, 2006, of Allianz Life Insurance
Company of North America, filed on January 3, 2013 as Exhibit 3(a) to Registrant's initial registration on Form S-1 (File No. 333-185864), is incorporated by reference.
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(b) |
Bylaws, as amended and restated August 1, 2006, of Allianz Life Insurance Company of North
America, filed on January 3, 2013 as Exhibit 3(b) to Registrant's initial registration on Form S-1 (File No. 333-185864), is incorporated by reference.
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4. (a)
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Individual Variable Annuity Contract-L40538 incorporated by reference as Exhibit 4(a) from
Pre-Effective Amendment No. 1 to Registrant's Form S-1 (File No. 333-185864), electronically filed on April 17, 2013.
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(b)(i)
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Contract Schedule Page S40876 incorporated by reference as Exhibit 4(b) from
Pre-Effective Amendment No. 1 to Registrant's Form S-1 (File No. 333-185864), electronically filed on April 17, 2013.
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(ii)
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Contract Schedule Page S40877-01, incorporated by reference as Exhibit 4(b) from Post-Effective Amendment No. 1 to Registrant's Form S-1 (File No. 333-195462), electronically filed on December 8, 2014.
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(iii)
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Revised Contract Schedule Page
S40877-01, including Guard Strategy, incorporated by reference as Exhibit 4(b) from Registrant’s Pre-Effective Amendment No. 1 on Form S-1 (File No. 333-213125), electronically filed on October 26,
2016.
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(c)(i)
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Contract Schedule Page S40875-ADV, incorporated by reference as Exhibit 4(c) from
Registrant’s initial registration on Form S-1 (File No. 333-213125), electronically filed on August 15, 2016.
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(ii)
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Contract Schedule page, S40875-01-ADV, including Precision Strategy, incorporated by reference as Exhibit 4(c) from Post-Effective Amendment No. 1 to Registrant's Form S-1 (File No. 333-213125), electronically filed on January 17, 2017.
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(iii)
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Index Options Contract Schedule Page, S40895-ADV, incorporated by reference as Exhibit 4(c) from Post-Effective Amendment No. 4 to Registrant’s Form S-1 (File No. 333-213125), electronically filed on April 17, 2018.
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(iv)*
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Index Options Contract Schedule Page and Addendum, S40877-ADV-04 and S40877--ADD-, filed herewith.
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(d)
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Application for Individual Variable Annuity Contract – IXA-APP-02-ADV-0419, incorporated by
reference as Exhibit 4(d) from Registrant’s initial registration on Form S-1 (File No. 333-185864), electronically filed on April 16, 2019.
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(e)(i)
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Index Performance Strategy Crediting Rider-S40878 incorporated by reference as Exhibit 4(d) from
Pre-Effective Amendment No. 1 to Registrant's Form S-1 (File No. 333-185864), electronically filed on April 17, 2013.
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(e)(ii)*
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Index Performance Strategy Rider II – S40903, filed herewith.
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(e)(iii)*
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Inforce Index Performance Strategy Rider II – S40903-INFORCE, filed herewith.
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(f)
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Index Guard Strategy Crediting Rider-S40889, incorporated by reference as Exhibit 4(g) from
Post-Effective Amendment No. 1 to Registrant's Form S-1 (File No. 333-195462), electronically filed on December 8, 2014.
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(g)
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Index Precision Strategy Crediting Rider, S40891, incorporated by reference as Exhibit 4(h) from
Post-Effective Amendment No. 1 to Registrant's Form S-1 (File No. 333-213125), electronically filed on January 17, 2017.
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(h)
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Traditional Death Benefit Rider-S40880 incorporated by reference as Exhibit
4(f) from Pre-Effective Amendment No. 1 to Registrant's Form S-1 (File No. 333-185864), electronically filed on April 17, 2013.
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(i)
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Waiver of Withdrawal Charge Rider-S40749
incorporated by reference as exhibit EX-99.B4.f. from Pre-Effective Amendment No. 1 to Registrant's Form N-4 (File Nos. 333-139701 and 811-05618), electronically filed on April 9, 2007.
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(j)
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Inherited IRA/Roth IRA Endorsement-S40713 incorporated by reference as exhibit EX-99.B4.q. 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.
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(k)
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Roth IRA Endorsement-S40342 incorporated by reference as exhibit
EX-99.B4.l. 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.
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(l)
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IRA Endorsement-S40014 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.
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(m)
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Unisex Endorsement-(S20146) 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.
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(n)
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Maximum Anniversary Death Benefit Rider- S40897 and MAV Contract
Schedule S40898-ADV, incorporated by reference as Exhibit 4(o) from Post-Effective Amendment No. 3 to Registrant’s form S-1 (File No. 333-213125), electronically filed on December 15, 2017.
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24. |
(a) | Board Resolution, effective December 11, 2012, of the Board of Directors of Allianz Life Insurance Company of North America, filed on January 3, 2013 as Exhibit 24(b) to Registrant's Initial Registration on Form S-1 (File No. 333-185864), is incorporated by reference. |
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(b) Form of Board Resolution of the Board of Directors of Allianz Life Insurance
Company of North America, effective April 14, 2014, filed on April 14, 2014 as Exhibit 24(d) to Registrant's Post-Effective Amendment No. 2 to Form S-1 (File No. 333-185864), is incorporated by reference.
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(c) |
Power of Attorney, filed on October 21, 2019 as Exhibit 24(c) to Registrant's Post-Effective
Amendment No. 2 to Form S-1 (File No. 333-230901), is incorporated by reference.
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99. |
(a) | Alternative Minimum Value Exhibit - IXA-032 (__/2019), incorporated by reference as Exhibit 99(a) from Post-Effective Amendment No. 2 to Registrant’s Form S-1 (File No. 333-224310), electronically filed on January 4, 2019. |
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(b) |
Appendix B Exhibit – Daily Adjustment Calculation –
IXA-010b (__/2019), incorporated by reference as Exhibit 99(b) from Post-Effective Amendment No. 2 to Registrant’s Form S-1 (File No. 333-224310), electronically filed on January 4, 2019.
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(c) |
Transition Representation Letter - Independent Registered Public Accounting
Firm, pursuant to S-K, item 304, incorporated by reference as Exhibit 99(c) from Post-Effective Amendment No. 4 to Registrant’s Form S-1 (File No. 333-213125), electronically filed on April 17, 2018.
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(1)
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To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:
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(i)
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To include any prospectus required by section 10(a)(3) of the Securities Act of 1933;
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(ii)
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To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually
or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of
securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b)
if, in the aggregate, the changes in volume and price represent no more than a 20% change in the maximum aggregate offering price set forth in the "Calculation of Registration Fee" table in the effective registration statement.
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(iii)
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To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the
registration statement.
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(2)
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That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration
statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
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(3)
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To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.
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(4)
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That, for the purpose of determining liability under the Securities Act of 1933 to any purchaser, each prospectus filed pursuant to Rule 424(b) as part of a
registration statement relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as
of the date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by
reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the
registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such date of first use.
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(5)
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That, for the purpose of determining liability of the registrant under the Securities Act of 1933 to any purchaser in the initial distribution of the securities: The
undersigned registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the
securities are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:
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(i)
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Any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424;
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(ii)
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Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant;
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(iii)
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The portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant or its securities provided
by or on behalf of the undersigned registrant; and
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(iv)
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Any other communication that is an offer in the offering made by the undersigned registrant to the purchaser.
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(6)
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Insofar as indemnification for liability arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the Registrant
pursuant to the foregoing provisions, or otherwise, the registrant 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 is, therefore,
unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant 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 registrant will, unless in the opinion of its counsel the matter has been
settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.
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Signature
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Title
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Jacqueline Hunt(1)
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Director and Chairman of the Board
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Director, President & Chief Executive Officer
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||
Ronald M. Clark(1)
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Director
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Udo Frank(1)
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Director
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William E. Gaumond(1)
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Director, Senior Vice President, Chief Financial Officer and Treasurer
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Kevin E. Walker(1)
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Director
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Anna Sophie Herken(1)
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Director
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Exhibit
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Description of Exhibit
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4(c)(iv)
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Index Options Contract Schedule Page and Addendum, S40877-ADV-04 & S40877-ADD
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4(e)(ii)
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Index Performance Strategy Rider II, S40903
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4(e)(iii)
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Inforce Index Performance Strategy Rider II, S40903-INFORCE
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This ‘POS AM’ Filing | Date | Other Filings | ||
---|---|---|---|---|
5/1/21 | ||||
1/1/21 | ||||
12/31/20 | ||||
3/31/20 | ||||
Filed on: | 1/21/20 | 424B3 | ||
1/6/20 | OIP NTC | |||
12/31/19 | 13F-NT | |||
12/28/19 | ||||
11/18/19 | ||||
11/15/19 | ||||
10/21/19 | POS AM | |||
8/20/19 | 424B3 | |||
7/22/19 | ||||
7/1/19 | ||||
6/24/19 | ||||
4/29/19 | 424B3, EFFECT | |||
4/16/19 | POS AM, S-1 | |||
4/1/19 | ||||
3/31/19 | 13F-NT | |||
1/4/19 | POS AM | |||
1/1/19 | ||||
10/1/18 | ||||
8/7/18 | ||||
7/2/18 | ||||
6/4/18 | ||||
6/3/18 | ||||
5/1/18 | EFFECT | |||
4/18/18 | ||||
4/17/18 | POS AM, S-1 | |||
1/15/18 | ||||
1/3/18 | ||||
1/2/18 | ||||
12/31/17 | 13F-HR | |||
12/15/17 | 424B3, POS AM | |||
11/14/17 | ||||
7/4/17 | ||||
6/3/17 | ||||
5/23/17 | ||||
1/17/17 | POS AM | |||
1/3/17 | ||||
12/31/16 | 13F-HR | |||
10/26/16 | S-1/A | |||
8/15/16 | S-1 | |||
7/22/16 | ||||
1/1/16 | ||||
8/21/15 | ||||
5/1/15 | ||||
12/8/14 | POS AM | |||
4/14/14 | POS AM | |||
4/8/14 | ||||
1/1/14 | ||||
4/17/13 | S-1/A | |||
1/3/13 | S-1 | |||
2/17/12 | ||||
1/16/12 | ||||
1/1/12 | ||||
9/24/10 | ||||
6/1/10 | ||||
1/1/10 | ||||
4/9/07 | ||||
9/25/06 | ||||
8/1/06 | ||||
5/19/06 | ||||
5/15/00 | ||||
12/30/99 | ||||
12/13/96 | ||||
List all Filings |