*V1 STKP
*V2 STKP
*V3 STKP
*V4 STKP
*V2NY STKP
SUPPLEMENT DATED AUGUST 3, 1998
TO THE PROSPECTUSES DATED MAY 1, 1998
OF
FRANKLIN VALUEMARK(R) LIFE
SINGLE PREMIUM VARIABLE LIFE INSURANCE
ALLIANZ LIFE VARIABLE ACCOUNT A
ALLIANZ VALUE LIFE
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
ALLIANZ LIFE VARIABLE ACCOUNT A
FRANKLIN VALUEMARK(R) II, III AND IV
FLEXIBLE PAYMENT VARIABLE ANNUITIES
ALLIANZ LIFE VARIABLE ACCOUNT B
FRANKLIN VALUEMARK(R) II
FLEXIBLE PREMIUM VARIABLE ANNUITY
PREFERRED LIFE VARIABLE ACCOUNT C
<TABLE>
<CAPTION>
The portfolio expense tables, which appear in the sections entitled "Fee Table" or "Allianz Life
Variable Account B Fee Table" or "Preferred Life Variable Account C Fee Table" in the annuity
prospectuses and in the subsections "Trust Annual Expenses" or "Portfolio Annual Expenses" under
"Deductions and Charges" in the variable life insurance prospectuses, are amended by:
1) Restating certain Portfolios' "Management and Portfolio Administration Fees" and the "Other
Expenses" as indicated below. The Portfolio Administration Fees for these Portfolios were
inadvertently included under "Other Expenses" rather than under "Management and Portfolio
Administration Fees." Please note that "Total Annual Expenses" for each Portfolio shown below are the
same as in the May 1, 1998 prospectuses.
MANAGEMENT
AND PORTFOLIO OTHER TOTAL ANNUAL
PORTFOLIO ADMINISTRATION FEES EXPENSES EXPENSES
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Mutual Discovery Securities Fund ................... .95%* .11% 1.06%
Mutual Shares Securities Fund ...................... .75%* .05% .80%
Templeton Global Asset Allocation Fund ............. .80%* .14% .94%
Templeton International Smaller Companies Fund ..... 1.00%* .06% 1.06%
<FN>
*Includes a .15% Administration Fee which is a direct expense of the Portfolio.
</FN>
</TABLE>
2) Adding the following language:
Franklin Advisers, Inc. and Franklin Templeton Services, Inc. have agreed in
advance to waive or limit their Management and Portfolio Administration Fees and
to assume as their own expense certain expenses otherwise payable by the new
Global Health Care Securities and Value Securities Funds as necessary so that
through at least December 31, 1998, Total Annual Expenses of each of these
portfolios do not exceed 1.00% of its average net assets. As noted in the May 1,
1998 prospectuses, estimated total annual expenses for these portfolios are not
anticipated to exceed 1.00% of their average net assets.
Please note: The Global Health Care Securities, Mutual Discovery Securities,
Templeton International Smaller Companies and Value Securities Funds are not
available in Allianz Value Life.
