Registration Nos. 33-15464
=============================================================================
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
POST-EFFECTIVE AMENDMENT NO. 20
TO
FORM S-6
FOR REGISTRATION UNDER THE SECURITIES ACT OF 1933
OF SECURITIES OF UNIT INVESTMENT TRUST
REGISTERED ON FORM N-8B-2
ALLIANZ LIFE VARIABLE ACCOUNT A
- -------------------------------
(Exact Name of Trust)
ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
- -----------------------------------------------
(Name of Depositor)
1750 Hennepin Avenue, Minneapolis, MN 55403-2195
- ------------------------------------- ----------
(Address of Depositor's Principal Executive Offices) (Zip Code)
Name and Address of Agent for Service
Michael T. Westermeyer
Allianz Life Insurance Company of North America
1750 Hennepin Avenue
Minneapolis, MN 55403-2195
Copies to:
Judith A. Hasenauer
Blazzard, Grodd & Hasenauer, P.C.
P.O. Box 5108
Westport, CT 06881
(203) 226-7866
It is proposed that this filing will become effective:
_____ immediately upon filing pursuant to paragraph (b) of Rule 485
_____ on May 1, 1998 pursuant to paragraph (b) of Rule 485
__X__ 60 days after filing pursuant to paragraph (a)(1) of Rule 485
_____ on (date) pursuant to paragraph (a)(1) of Rule 485
If appropriate, check the following box:
[ ] This Post-Effective Amendment designates a new effective date for a
previously filed post-effective amendment.
Title and amount of securities being registered:
Individual Single Premium Variable Life Insurance Policies.
CROSS REFERENCE TO ITEMS REQUIRED
BY FORM N-8B-2
<TABLE>
<CAPTION>
<S> <C>
N-8B-2 Item Caption in Prospectus
1 Allianz Life, The Separate Account
2 Allianz Life
3 Not Applicable
4 Distributor
5 The Separate Account
6(a) Not Applicable
(b) Not Applicable
9 Not Applicable
10 Purchases
11 Investment Options
12 Investment Options
13 Expenses
14 Purchases
15 The Separate Account
16 Investment Options
17 Policy Values, Access to your Money
and Transfers
18 Purchases
19 Not Applicable
20 Not Applicable
21 Not Applicable
22 Not Applicable
23 Not Applicable
24 Not Applicable
25 Allianz Life
26 Allianz Life
27 Allianz Life
28 Allianz Life
29 Allianz Life
30 Allianz Life
31 Not Applicable
32 Not Applicable
33 Not Applicable
34 Not Applicable
35 Allianz Life
37 Not Applicable
38 Distributor
39 Distributor
40 Not Applicable
41(a) Distributor
42 Not Applicable
43 Not Applicable
44 Purchases
45 Not Applicable
46 Policy Values, Access to your Money
and Transfers
47 Not Applicable
48 Not Applicable
49 Not Applicable
50 Not Applicable
51 Allianz Life
52 Investment Options
53 Taxes
54 Financial Statements
55 Not Applicable
</TABLE>
THE SINGLE PREMIUM VARIABLE LIFE INSURANCE POLICY
issued by
Allianz Life Variable Account A
and
Allianz Life Insurance Company of North America
This prospectus describes the Single Premium Variable Life Insurance Policy
(Policy) offered by Allianz Life Insurance Company of North America (Allianz
Life).
The Policy is a variable benefit policy. We have designed the Policy for use in
estate planning and other insurance needs of individuals.
The Policy offers you 25 variable options, each of which invests in a portfolio
of Franklin Valuemark Funds. The portfolios are listed below. When you buy a
Policy, you are subject to investment risk. This means that the death benefit
and your Policy Value may increase and decrease depending upon the performance
of the variable option(s) you select. There is a Guaranteed Death Benefit
payable. However, any loans against the Policy will impact this guarantee. You
can surrender your Policy for its cash surrender value. No partial surrenders
are allowed.
Franklin Valuemark Funds:
PORTFOLIO SEEKING STABILITY OF PRINCIPAL AND INCOME:
Money Market Fund
PORTFOLIOS SEEKING CURRENT INCOME:
High Income Fund
Templeton Global Income Securities Fund
U.S. Government Securities Fund
Zero Coupon Funds - 2000, 2005 and 2010
PORTFOLIOS SEEKING GROWTH AND INCOME:
Global Utilities Securities Fund
Growth and Income Fund
Income Securities Fund
Mutual Shares Securities Fund
Real Estate Securities Fund
Rising Dividends Fund
Templeton Global Asset Allocation Fund
Value Securities Fund
PORTFOLIOS SEEKING CAPITAL GROWTH:
Capital Growth Fund
Global Health Care Securities
Mutual Discovery Securities Fund
Natural Resources Securities Fund
Small Cap Fund
Templeton Developing Markets Equity Fund
Templeton Global Growth Fund
Templeton International Equity Fund
Templeton International Smaller Companies Fund
Templeton Pacific Growth Fund
The portfolios are described in the attached prospectus for Franklin Valuemark
Funds. You can make or lose money based on the portfolio's performance. The
Policy is subject to investment risk.
In Oregon, all references to "Franklin Valuemark Life" refer to "Valuemark
Life."
Please read this prospectus before investing and keep it on file for future
reference. It contains important information about the Allianz Life Single
Premium Variable Life Insurance Policy. The Securities and Exchange Commission
(SEC) maintains a Web site (http://www.sec.gov) that contains material
incorporated by reference and other information regarding companies that file
electronically with the SEC.
The Policy:
o is not a bank deposit.
o is not federally insured.
o is not endorsed by any bank or government agency.
o is not guaranteed and may be subject to loss of principal.
The Securities and Exchange Commission has not approved or disapproved these
securities or determined if this prospectus is truthful or complete. Any
representation to the contrary is a criminal offense.
This prospectus is not an offering of the securities in any state, country, or
jurisdiction in which we are not authorized to sell these securities. You should
rely only on the information contained in this prospectus or that we have
referred you to. We have not authorized anyone to provide you with information
that is different.
May 1, 1999
TABLE OF CONTENTS
SPECIAL TERMS.................................................................5
SUMMARY ......................................................................6
PART I ..................................................................... 10
1. THE VARIABLE LIFE INSURANCE POLICY..................................10
2. PURCHASES..................................... .....................10
Single Premium......................................................10
Application for a Policy............................................10
Allocation of Single Premium........................................11
Grace Period........................................................11
Policy Values.......................................................12
Exchange Provision..................................................12
3. INVESTMENT OPTIONS..................................................12
Transfers...........................................................14
4. EXPENSES....................................... ....................14
Insurance Charges...................................................14
Deferred Issue Charge........................... ...................15
Transfer Fee........................................................16
Taxes ..............................................................16
Portfolio Expenses..................................................16
5. DEATH BENEFIT............................................................18
6. TAXES....................................................................18
Life Insurance in General...........................................19
Taking Money Out of Your Policy.....................................19
Diversification.....................................................19
7. ACCESS TO YOUR MONEY.....................................................20
Loans ..............................................................20
Interest Credited...................................................20
Total Surrender and Termination of the Policy ......................21
8. OTHER INFORMATION........................................................21
Allianz Life........................................................21
Year 2000...........................................................21
The Separate Account................................................21
Distributor.........................................................22
Suspension of Payments or Transfers.................................22
Ownership...........................................................22
Management of Allianz Life..........................................24
Administration of the Policies......................................25
Voting ............................................................ 25
The Separate Account................................................26
Legal Opinions......................................................26
Misstatement of Age or Sex..........................................26
Right to Contest...................................................26
Settlement Options............................................ .....27
Tax Status..........................................................27
Income Tax Withholding..............................................30
Reports to Owners...................................................31
Legal Proceedings...................................................31
Experts ........................................................... 31
Financial Statements................................................31
APPENDIX A ILLUSTRATION OF POLICY VALUES.....................................31
APPENDIX B TABLE OF NET SINGLE PREMIUM FACTORS...............................33
SPECIAL TERMS
We have tried to make this prospectus as readable and understandable for you as
possible. However, by the very nature of the Policy certain technical words or
terms are unavoidable. We have identified some of those words or terms. For
several of these terms we have provided a definition. For the remainder, we
believe that you will find an adequate discussion in the text. We have
identified those terms not defined below in the text in italics and provided you
with a page number that indicates where we believe you will find the best
explanation for the word or term.
Cash Surrender Value C Your Policy Value less the sum of the uncollected
Deductions and any Indebtedness.
Deductions - The charges we levy against your Policy.
Face Amount C The amount of coverage that you choose. This amount is used to
determine the death benefit.
Guaranteed Death Benefit - We guarantee that the Policy will remain in force
regardless of investment experience, unless the Indebtedness under your Policy
exceeds the Policy Value less uncollected Deductions. If there is no
Indebtedness, the Policy cannot lapse even if the Policy Value is $0.
Indebtedness - The amount of any existing Policy loans plus the pro-rata portion
of any accrued interest.
Policy Date, Policy Anniversary, Policy Year C The Policy Date is when the
Insured's life is covered under your Policy. It is the date from which your
Policy Anniversaries and Policy Years are determined.
Policy Value C The total value of your Policy. It is equal to the sum of the
values allocated to the variable options and the values allocated to the loan
account. (Policy Value is referred to as Account Value in the Policy.)
Processing Date - The Policy Date and the same day of the month as the Policy
Date at the end of each successive 3-month period. The Processing Date is when
we deduct charges and recalculate the death benefit.
Valuation Unit C An accounting unit used to calculate Policy values when they
are allocated to the portfolios.
Page
Beneficiary
Business Day
Insured
Issue Date
Joint Owner
Loan Account
Owner
Portfolio
Premium
Surrender Charge
Variable Option
The prospectus is divided into three sections: Summary, Part I and Part II. The
sections in the Summary correspond to sections in Part I of this prospectus
where the topics are discussed in more detail. Additional important information
is contained in Part II of this prospectus.
SUMMARY
1. THE VARIABLE LIFE INSURANCE POLICY
The variable life insurance policy that we are offering is a contract between
you, the owner, and Allianz Life, an insurance company. In this prospectus,
"we", "us" and "our" refers to Allianz Life. The Policy provides for the payment
of a death benefit to your selected beneficiary upon the death of the insured.
This death benefit is distributed free from federal income taxes. The Policy can
be used as part of your estate planning. Estate taxes may apply. The insured is
the person whose life is insured under the Policy. You, the owner can also be
the insured but you do not have to be.
You can choose among the 25 variable options. Each variable option invests in
one portfolio of Franklin Valuemark Funds. The portfolios are listed in Item 3.
You can allocate your unloaned Policy Value to any or all of the variable
options. You can transfer between variable options up to 12 times a year without
charge and without being taxed. If you make more than 12 transfers in a year, we
will charge $25 or 2% of the amount transferred, whichever is less. Market
timing transfers may not be permitted.
While the Policy is in force, the Policy Value and, under certain circumstances,
the death benefit, will vary with the investment performance of the portfolios
you choose. You are not taxed on the earnings from the variable options until
you surrender or borrow from your Policy.
2. PURCHASES
You buy the Policy with a single premium payment. The minimum single premium we
will accept is $20,000. In some circumstances, the insured may be required to
provide us with medical records or a complete paramedical examination. Your
registered representative can help you complete the proper forms.
3. INVESTMENT OPTIONS
The variable options each invest in a portfolio of Franklin Valuemark Funds. You
can put your money in any or all of the Class 1 share portfolios listed below
which are described in the prospectus for the Franklin Valuemark Funds. Franklin
Valuemark Funds offers two classes of shares. Only Class 1 shares are available
with the Policy.
PORTFOLIO SEEKING STABILITY OF PRINCIPAL AND INCOME:
Money Market Fund
PORTFOLIOS SEEKING CURRENT INCOME:
High Income Fund
Templeton Global Income Securities Fund
U.S. Government Securities Fund
Zero Coupon Funds - 2000, 2005 and 2010
PORTFOLIOS SEEKING GROWTH AND INCOME:
Global Utilities Securities Fund
Growth and Income Fund
Income Securities Fund
Mutual Shares Securities Fund
Real Estate Securities Fund
Rising Dividends Fund
Templeton Global Asset Allocation Fund
Value Securities Fund
PORTFOLIOS SEEKING CAPITAL GROWTH:
Capital Growth Fund
Global Health Care Securities Fund
Mutual Discovery Securities Fund
Natural Resources Securities Fund
Small Cap Fund
Templeton Developing Markets Equity Fund
Templeton Global Growth Fund
Templeton International Equity Fund
Templeton International Smaller Companies Fund
Templeton Pacific Growth Fund
Depending upon market conditions, you can make or lose money in any of these
portfolios.
4. EXPENSES
The Policy has both insurance features and investment features, and there are
costs related to each that reduce the return on your investment.
Each business day we deduct a total insurance charge which is equal, on an
annual basis, to 0.75% of your average Policy Value.
Each Processing Date we deduct from your Policy Value the cost of insurance
charge. This charge pays us for providing you with death benefit protection for
the period since the last Processing Date. This charge varies and depends upon
the sex, age and rating classification of the insured.
When the single premium is received by us, we accrue against your Policy a
deferred issue charge. This charge includes a premium tax charge which is 2.5%
of the premium; a sales charge which is 4% of the premium; and a policy issue
charge which is 0.5% of the premium. A portion of the deferred issue charge is
deducted annually for the first 10 years of the Policy. If you surrender your
Policy before the full amount of the deferred issue charge is deducted, we will
collect the remaining portion of the charge from your Policy Value at the time
of surrender.
Under certain circumstances, we may assess a transfer fee when you transfer your
Policy Value from one portfolio to another.
There are also annual portfolio operating expenses, which vary depending upon
the portfolio(s) you select. These expenses range from ___% to ___% of the
average daily value of the portfolios Class 1 shares.
5. DEATH BENEFIT
The Policy provides for a Face Amount of insurance. On the day we issue you a
Policy the death benefit is the Face Amount. Thereafter the death benefit may
vary. The actual amount payable to your beneficiary is the death benefit less
any Indebtedness.
The death benefit will be the greater of (1) your Face Amount or (2) your Policy
Value multiplied by a specified percentage. These percentages vary by the age of
the insured and are shown in your Policy. Therefore, increases in your Policy
Value under certain circumstances will increase the death benefit. A decrease in
Policy Value may decrease the death benefit, but the death benefit will never be
less than the Face Amount so long as the Policy remains in force.
When you apply for a Policy, you designate a beneficiary who is the person or
persons who will receive the death benefit. You can change your beneficiary
unless you have designated an irrevocable beneficiary. The beneficiary does not
have to be a natural person.
6. TAXES
Your earnings are not taxed until you take them out. In most cases, your Policy
will be a modified endowment contract unless it was exchanged for a contract
issued before June 21, 1988. Money taken out of a modified endowment contract is
considered to come from earnings first and is taxed as income. Also, if you are
younger than 59 2 when you take money out, you may be charged a 10% federal tax
penalty on the earnings withdrawn. The death benefit is paid to your beneficiary
income tax free. However, estate taxes may apply.
7. ACCESS TO YOUR MONEY
Under the Policy you may surrender the policy at anytime for its Cash Surrender
Value. You can also borrow some of your Policy Value. The minimum loan amount is
$1,000. Loans will affect the death benefit, Policy Value and investment
performance. You cannot make partial surrenders.
8. OTHER INFORMATION
Right to Examine
If you cancel your Policy within ten days after you receive it (or whatever
period is required in your state), we will return to you the greater of (1) the
premium(s) you paid or (2) your Policy Value on the day we, or the agent through
whom it was purchased, received the returned Policy. Until the end of the time
you are allowed to examine your Policy (15 days or the required period in your
state), your premium will remain in the Money Market Fund.
After that, we will invest your Policy Value as you requested.
Who Should Purchase the Policy?
The Policy is designed for an individual who wants to:
o create or conserve his/her estate;
o retain access to cash through loans and surrenders; and
o use the income tax advantages of life insurance.
If you currently own a variable life insurance policy on the life of the
insured, you should consider whether the purchase of the Policy is appropriate.
Also, you should carefully consider whether the Policy should be used to replace
an existing Policy on the life of an insured.
Allianz Life will not issue a Policy on an insured older than 80. However, we
may waive this requirement under special circumstances.
9. INQUIRIES
If you need more information, please contact us at:
Allianz Life Insurance Company of North America
1750 Hennepin Ave.
Minneapolis, MN 55403
800-542-5437
If you need Policy owner service (such as changes in Policy information,
questions regarding Policy Values, or to make a loan), please contact us at:
Valuemark Service Center
300 Berwyn Park
P.O. BOX 3031
Berwyn, PA 19312
800-624-0197
PART I
1. THE VARIABLE LIFE INSURANCE POLICY
This variable life insurance policy is a contract between you, the owner, and
Allianz Life, an insurance company. This kind of policy is most commonly used
for estate planning.
While the insured is still alive, you can select among the variable options
offered in the Policy. (There are currently 25 variable options each of which
invests in a portfolio of Franklin Valuemark Funds. The portfolios are listed in
Item 3.) You can transfer between the variable options up to 12 times a year
without charge. The Policy Value and, under some circumstances, the death
benefit will go up or down depending upon the investment experience of the
portfolio(s) you select. This gives you the opportunity to capture the upside
potential of the market. It also means you could lose money.
While your money remains in the Policy, you pay no current income taxes on
earnings or gains. This is called tax-deferred accumulation. It helps your money
grow faster. Subject to some limitations, you may take money out at any time
through loans or a surrender. There are no partial surrenders allowed, only full
surrenders. However, any money you take out, even as a loan, is taxed as
earnings until all earnings have been removed from the Policy. If you are
younger than age 59 2 when you take money out, you may also incur an additional
10% federal tax penalty. If you purchased a Policy in exchange for a policy
issued prior to June 21, 1988, different tax rules may apply. (See Section 6.
Taxes. Part II also contains more detailed information regarding taxes.)
Because this is a life insurance policy, it provides a death benefit, which is
an amount greater than your Policy Value. When the insured dies, the death
benefit (minus any loans and any accrued loan interest) is paid to your
beneficiary free from federal income tax.
2. PURCHASES
Single Premium
The single premium is the money you give us to buy the Policy. The minimum
single premium we will accept is $20,000. When you apply for the Policy, you
request a specific amount of insurance which will vary depending, in part, on
the amount of the premium you pay. We call this amount the Face Amount of the
Policy. The Internal Revenue Code (Code) has established certain criteria which
must be met in order for a life insurance policy to qualify as life insurance
under the Code. The Code requires that there be a minimum Face Amount for a
specified premium depending upon the age of the insured.
Application for a Policy
In order to purchase a Policy, you must submit to us an application which
provides us with information on the proposed insured. In some cases, we will ask
for additional information. We may request that the insured provide us with
medical records or possibly require other medical tests.
We will not issue a Policy if the insured is over age 80, except under special
circumstances.
We will review all the information we have about the insured and determine
whether or not the insured meets our standards for issuing the Policy. This
process is called underwriting. If the insured meets all of our underwriting
requirements, we will issue a Policy. There are several underwriting classes
under which the Policy may be issued. We will not issue the Policy unless the
premium and the application are in good order as determined by our underwriting
rules.
Allocation of Single Premium
When you purchase a Policy, we will initially invest your money in the Money
Market Fund. After 15 days from the issue date (or the period required in your
state), we will allocate your Policy Value to the portfolios as you requested in
the application. We reserve the right to limit the number of variable options
which you can invest in. Currently, you can invest in up to 10 variable options.
If as a result of underwriting review, we do not issue you a Policy, we will
return your premium, plus interest required by your state.
Free Look
If you change your mind about owning a Policy, you can cancel it within 10 days
after receiving it (or the period required in your state). We will give you back
the greater of your premium payment or your Policy Value. Any amounts we refund
will include all Policy fees and charges.
Grace Period
Your policy will lapse if your total Indebtedness under the Policy is greater
than your Policy Value less any uncollected Deductions. If you have no loan
outstanding, the Policy cannot lapse even if your Policy Value goes to zero.
If your Policy does lapse, you have a 31-day grace period to repay your loan by
making a payment of at least an amount which is sufficient to keep your Policy
in force through 3 Processing Dates. If you do not make the required loan
repayment by the end of the grace period, your Policy will lapse and all
coverage under your Policy will terminate without value.
Your Policy continues in force during the grace period. If the insured dies
during the grace period, the death benefit is calculated as the death benefit in
effect immediately prior to the start of the grace period less any accrued
Deductions and less any Indebtedness.
Reinstatement
If your Policy terminates while the insured is still alive you can have it
reinstated if the Policy did not terminate because you made a total surrender.
You can only reinstate your Policy during the lifetime of the insured.
The requirements for a reinstatement are:
o We must receive a properly executed application for
reinstatement. It must be sent to our Service Office.
o You must provide us with satisfactory evidence of insurability
of the insured.
o You must pay a premium sufficient to keep the Policy in force
through 3 Processing Dates.
o You must repay any Indebtedness.
We will reinstate your Policy on the next Processing Date after we approve the
reinstatement application.
The effective date of the reinstated Policy is the next processing date
following our approval of your application for reinstatement.
Policy Values
The value of your Policy will go up or down depending upon the investment
performance of the portfolio(s) you choose and the charges and deductions made
against the Policy Value. In order to keep track of your Policy Value, we use a
unit of measure we call a Valuation Unit. (A Valuation Unit works like a share
of a mutual fund.)
Every business day Allianz Life determines the value of a Valuation Unit for
each of the variable options. The value of a Valuation Unit for any given
business day is determined by multiplying a factor we call the net investment
factor times the value of Valuation Unit for the previous business day. We do
this for each variable option. The net investment factor is a number that
reflects the change (up or down) in an underlying investment portfolio share.
Our business days are each day that the New York Stock Exchange is open for
business. Our business day closes when the New York Stock Exchange closes,
usually 4:00 P.M. Eastern time.
The value of a Valuation Unit may go up or down from day to day.
When you make a premium payment, we credit your Policy with Valuation Units. The
number of Valuation Units credited is determined by dividing the amount of
premiums allocated to a variable option by the value of the Valuation Unit for
that variable option.
When we assess the Deductions we do so by deducting Valuation Units from your
Policy. If you select more than one variable option, we make the deductions pro
rata from all of the variable options. When you make a loan we also deduct
Valuation Units and place the amount in the Loan Account.
Exchange Provision
You can exchange a Policy for a policy with benefits that do not vary with the
investment results of the portfolios. You must elect such an exchange within 24
months after we issue you the Policy. You do not need to submit any evidence of
insurability so long as the benefits under the new policy are equal to or less
than the benefits under the Policy at the time of exchange.
3. INVESTMENT OPTIONS
The Policy offers variable options which invest in Class 1 shares of 25
portfolios of Franklin Valuemark Funds which are listed below. Additional
portfolios may be available in the future.
You should read the prospectus for Franklin Valuemark Funds (which is attached
to this prospectus) carefully before investing.
Franklin Valuemark Funds (Trust) is the mutual fund underlying your Policy. Each
portfolio has its own investment objective. The Trust issues two classes of
shares which are described in the accompanying Trust prospectus. Only Class 1
shares are available in connection with your Policy. Investment managers for
each Portfolio are listed in the table below and are as follows: Franklin
Advisers, Inc. (FA), Franklin Advisory Services, Inc. (FAS), Franklin Mutual
Advisers, Inc. (FMA), Templeton Asset Management Ltd. (TAM), Templeton Global
Advisors Limited (TGA), and Templeton Investment Counsel, Inc. (TIC). Certain
managers have retained one or more affiliated subadvisers to help them manage
the portfolios.
The following is a list of the Portfolios available under the Policy:
Available Investment
Portfolios Managers
PORTFOLIO SEEKING STABILITY OF PRINCIPAL AND INCOME
Money Market Fund ..........................................................FA
PORTFOLIOS SEEKING CURRENT INCOME
High Income Fund ...........................................................FA
Templeton Global Income Securities Fund.....................................FA
U.S. Government Securities Fund.............................................FA
Zero Coupon Funds-2000,2005,2010............................................FA
PORTFOLIOS SEEKING GROWTH AND INCOME
Global Utilities Securities Fund............................................FA
Growth and Income Fund......................................................FA
Income Securities Fund......................................................FA
Mutual Shares Securities Fund..............................................FMA
Real Estate Securities Fund.................................................FA
Rising Dividends Fund......................................................FAS
Templeton Global Asset Allocation Fund.....................................TGA
Value Securities Fund......................................................FAS
PORTFOLIOS SEEKING CAPITAL GROWTH
Capital Growth Fund.........................................................FA
Global Health Care Securities Fund..........................................FA
Mutual Discovery Securities Fund...........................................FMA
Natural Resources Securities Fund...........................................FA
Small Cap Fund..............................................................FA
Templeton Developing Markets Equity Fund...................................TAM
Templeton Global Growth Fund...............................................TGA
Templeton International Equity Fund.........................................FA
Templeton International Smaller Companies Fund.............................TIC
Templeton Pacific Growth Fund...............................................FA
Franklin Valuemark Funds serves as the underlying mutual fund for variable life
insurance policies offered by Allianz Life and variable annuity contracts
offered by Allianz Life and its affiliates. Franklin Valuemark Funds believes
that offering its shares in this manner will not be disadvantageous to you.
Transfers
You can transfer money among the 25 variable options.
You can make 12 transfers every Policy Year without charge while the insured is
alive. If you make more than 12 transfers in a year, there is a transfer fee
deducted. (We measure years from your Policy Date.) The fee is $25 per transfer
or, if less, 2% of the amount transferred. The minimum amount which you can
transfer is $500 or your entire value in the variable option.
You can make transfers by telephone only if you previously elected to do so in
writing. Unless we are instructed otherwise, if you own the Policy with a joint
owner we will accept instructions from either you or the other owner. We will
use reasonable procedures to confirm that instructions given to us by telephone
are genuine. If we fail to use such procedures, we may be liable for any losses
due to unauthorized or fraudulent instructions. We record all telephone
instructions.
We have not designed the Policy for use by professional market timing
organizations or other persons using programmed, large, or frequent transfers.
Such activity may be disruptive to a portfolio. We reserve the right to reject
any transfer request from any person, if in the portfolio managers' judgment, a
portfolio would be unable to invest effectively in accordance with its
investment objectives and policies, or would otherwise potentially be adversely
affected.
Substitution
We may elect to substitute one of the variable options you have selected with
another variable option. We would not do this without the prior approval of the
Securities and Exchange Commission. We will give you notice of our intent to do
this. We may also limit further investment in a variable option if we deem the
investment inappropriate.
4........EXPENSES
There are charges and other expenses associated with the Policy that reduce the
return on your investment in the Policy. These charges and expenses are:
Insurance Charges
Each business day we will make a deduction for the mortality and expense risk
charge and the administrative charge.
Mortality and Expense Risk Charge. This charge is equal, on an annual basis, to
0.60% of the Policy Value of the Policy. This charge cannot be increased. This
charge compensates us for assuming the mortality and expense risks under the
Policy.
Administrative Charge. This charge is equal, on an annual basis, to .15% of the
Policy Value of your Policy. This charge cannot be increased. This charge
compensates us for expenses we incur in the administration of the Policies.
Cost of Insurance Charge. This charge compensates us for insurance coverage
provided since the last Processing Date.
The guaranteed cost of insurance charge is determined by multiplying the net
amount at risk by the cost of insurance rate. The net amount at risk is the
difference between the death benefit and the sum of your Cash Surrender Value
and your loan account value. The cost of insurance rate is based upon the sex
(in states where permitted), age and rate classification of the insured. The
rate classification of the insured is determined through our underwriting
process.
The Policy provides that for standard risks, the guaranteed cost of insurance
rate is based on the Commissioners Standard 1980 Ordinary Male and Female,
Smoker and Non-Smoker Mortality Tables last birthday (1980 CSO Tables). For
substandard risks, the guaranteed cost of insurance rate is higher and will be
based upon a multiple of the 1980 CSO Tables. The multiple is based on the
insured's substandard rating. Tables setting forth the guaranteed cost of
insurance rates are included in each Policy.
We can use rates that are less than the guaranteed cost of insurance rates shown
in the Policy. We refer to these rates as the current cost of insurance rates.
The current rates we currently use are approximately 75% of the 1980 CSO Tables.
The current rates will never be more than the guaranteed maximum cost of
insurance rates.
Deferred Issue Charge
When we receive your single premium payment, a Deferred Issue Charge of 7% is
accrued. We deduct this charge in 10 equal annual deductions of .7% on Policy
Anniversaries for the first 10 Policy Years. If you surrender the Policy before
the full amount is deducted, the uncollected portion of this charge is deducted
from the Policy Value. The total Deferred Issue Charge is 7.0%. The Deferred
Issue Charge is for premium taxes (2.5% of the single-premium); sales charge
(4.0% of the single-premium); and Policy issue charge (0.5% of the
single-premium). For policies issued in the state of California only, the
Deferred Issue Charge is for premium taxes (2.35% of the single-premium); sales
charge (4.15% of the single-premium); and Policy issue charge (0.5% of the
single-premium).
Premium Taxes - Most states and certain jurisdictions, such as cities and
counties, tax premium payments. Premium taxes vary from state to state and
generally range from 2% to 3%. This charge does not apply in states that have no
premium tax.
Sales Charge - This sales charge reimburses us for expenses incurred in
connection with the promotion, sale and distribution of the Policy. This charge
is not expected to cover all of our distribution costs. If this charge is
insufficient to cover the distribution costs, we may make up the difference from
our general assets and from the profit we expect from the Mortality and Expense
Risk Charge.
Policy Issue Charge - This charge is designed to cover the administrative
expenses we incur in connection with issuing a Policy. Such expenses include
initial underwriting review, medical examinations, inspection reports, attending
physicians' statements, insurance underwriting costs, Policy issuance costs,
establishing permanent Policy records, preparation of illustrations, preparation
of riders and the initial confirmation of the transaction.
Transfer Fee
You can make 12 free transfers every year. We measure a year from the Policy
Date. If you make more than 12 transfers a year, we will deduct a transfer fee
of $25 or 2% of the amount that is transferred, whichever is less. If we do
assess a transfer fee, it will be deducted from the amount transferred.
Your initial allocation will not count in determining the transfer fee.
Taxes
We may assess a charge against a Policy for any taxes attributable to the
Policy. We do not expect to incur such taxes.
Portfolio Expenses
There are deductions from the assets of the various portfolios for operating
expenses (including management fees), which are summarized below. See the
Franklin Valuemark Funds prospectus for a complete description.
<TABLE>
<CAPTION>
FRANKLIN VALUEMARK FUNDS' ANNUAL EXPENSES: CLASS 1 SHARES (as a percentage of a
portfolio's average net assets).
The "Management and Portfolio Administration Fees" below include investment
advisory and other management and administrative fees not included as "Other
Expenses" that were paid to the Managers and Portfolio Administrators for the
1998 calendar year except for newer Portfolios without a full year of operations
as of December 31, 1998 (see explanatory footnotes below).
Management and Portfolio Other Total Annual
Administration Fees 1 Expenses Expenses
<S> <C> <C> <C>
Capital Growth Fund ........... .75% .02% .77%
Global Health Care Securities
Fund2 ................ .75% .11% .86%
Global Utilities Securities
Fund ................ .47% .03% .50%
Growth and Income Fund ........ .47% .02% .49%
High Income Fund .............. .50% .03% .53%
Income Securities Fund ........ .47% .03% .50%
Money Market Fund3 ............ .51% .02% .53%
Mutual Discovery Securities
Fund .......................... .95% .11% 1.06%
Mutual Shares Securities Fund . .75% .05% .80%
Natural Resources Securities
Fund ................. .62% .07% .69%
Real Estate Securities Fund ... .51% .03% .54%
Rising Dividends Fund ......... .72% .02% .74%
Small Cap Fund ................ .75% .02% .77%
Templeton Developing Markets
Equity Fund .......... 1.25% .17% 1.42%
Templeton Global Asset
Allocation Fund ...... .80% .14% .94%
Templeton Global Growth Fund .. .83% .05% .88%
Templeton Global Income
Securities Fund ...... .56% .06% .62%
Templeton International
Equity Fund .......... .80% .09% .89%
Templeton International
Smaller Companies Fund 1.00% .06% 1.06%
Templeton Pacific Growth
Fund ................. .92% .11% 1.03%
U.S. Government Securities
Fund ................. .48% .02% .50%
Value Securities Fund2 ........ .75% .06% .81%
Zero Coupon Fund - 20004 ...... .37% .03% .40%
Zero Coupon Fund - 20054 ...... .37% .03% .40%
Zero Coupon Fund - 20104 ...... .37% .03% .40%
<FN>
1. The Portfolio Administration Fee is a direct expense for the Global
Health Care Securities Fund, the Mutual Discovery Securities Fund, the
Mutual Shares Securities Fund, the Templeton Global Asset Allocation
Fund, the Templeton International Smaller Companies Fund, and the Value
Securities Fund; other Portfolios pay for similar services indirectly
through the Management Fee. See the Franklin Valuemark Funds prospectus
for further information regarding these fees.
2. The Global Health Care Securities Fund and the Value Securities Fund
commenced operations May 1, 1998. The expenses shown above for these
Portfolios are therefore estimated for 1998. Franklin Advisers Inc. and
Franklin Advisory Services, Inc., the Portfolios' respective investment
managers, and Franklin Templeton Services, Inc., their Administrator,
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 these portfolios as necessary so that through at
least December 31, 1998, the total expenses of each portfolio do not
exceed 1.00% of its average net assets.
3. Franklin Advisers, Inc. agreed in advance to waive a portion of its
Management Fee and to pay certain expenses of the Money Market Fund
during 1998. It is currently continuing this arrangement in 1999. This
arrangement may be terminated at any time. With this reduction, the
Portfolio's actual total annual expenses for 1998 were ____% of the
average daily net assets of the Portfolio.
4. Although not obligated to, Franklin Advisers, Inc. has agreed in
advance to waive a portion of its Management Fees and to pay certain
expenses of the three Zero Coupon Funds through at least December 31,
1999 so that the total expenses of each Zero Coupon Fund will not
exceed 0.40% of each Portfolio's net assets. Absent the management fee
waivers, for the year ended December 31, 1998, the Total Annual
Expenses and Management and Portfolio Administration Fees would have
been as follows: Zero Coupon Fund - 2000, ___% and ___%; Zero Coupon
Fund - 2005, ___% and ___%; and Zero Coupon Fund - 2010, ___% and ___%.
There were no expense reimbursements during 1998 for the Zero Coupon
Funds.
</FN>
</TABLE>
5. DEATH BENEFIT
The primary purpose of the Policy is to provide death benefit protection on the
life of your insured. Even if your Policy Value is $0, the Policy will not lapse
if there is no Indebtedness under the Policy.
The death benefit is paid upon receipt of due proof of the insured's death. The
death benefit is the greater of: (1) the Face Amount; or (2) the variable
insurance amount as of the date we receive proof of death of the insured. After
the issue date, the variable insurance amount will be your Policy Value, less
the uncollected Deductions, multiplied by the net single premium factor for the
Insured's attained age as of such date. The table of net single premium factors
is contained in Appendix B to this prospectus and is shown in your Policy. The
Face Amount is determined on the date we issue your Policy. The variable
insurance amount is the same as the Face Amount on that date. Thereafter the
variable insurance amount will vary.
The amount payable for the death benefit is reduced by any Indebtedness and any
accrued deductions, and is increased by amount due from riders. Payment of the
death benefit may be delayed pending receipt of any applicable tax consents
and/or forms from a state. Your Policy will terminate without value, as
described in the grace period provision, if your Indebtedness is greater than
the Policy Value less the uncollected Deductions.
6. TAXES
NOTE: We have prepared the following information on taxes as a general
discussion of the subject. It is not intended as tax advice to any person. You
should consult your own tax adviser about your own circumstances. We have
included an additional discussion regarding taxes in Part II of this prospectus.
Life Insurance in General
Life insurance, such as the Policy, is a means of providing for certain
financial protections upon your death and setting aside money for future needs.
Congress recognized the importance of such planning and provided special rules
in the Internal Revenue Code (Code) for life insurance.
Simply stated, these rules provide that you will not be taxed on the earnings on
the money held in your life insurance policy until you take the money out. The
beneficiaries are not taxed when they receive the death proceeds upon the death
of the insured. However, estate taxes may apply.
You, as the owner, will not be taxed on increases in the value of your Policy
until a distribution occurs - either as a surrender or as a loan. When you
receive a distribution, you are taxed on the amount of the surrender that is
earnings.
Taking Money Out of Your Policy
For tax purposes, your Policy will be treated as a modified endowment contract,
unless under certain circumstances it was exchanged for a policy issued before
June 21, 1988. Consequently, if you make a withdrawal or take a loan from your
Policy, the Code treats it as first coming from earnings and then from your
premiums. These earnings are included in taxable income.
The Code also provides that any amount received from an insurance policy which
is included in income may be subject to a 10% penalty. The penalty will not
apply if the income received is: (1) paid on or after the taxpayer reaches age
59 2; (2) paid if the taxpayer becomes totally disabled (as that term is defined
in the Code); or (3) in a series of substantially equal payments made annually
(or more frequently) for the life or life expectancy of the taxpayer. If you
purchased a Policy in exchange for a policy issued prior to June 21, 1988,
different tax rules may apply. See "Tax Status" in Part II for more details.
Diversification
The Code provides that the underlying investments for a variable life policy
must satisfy certain diversification requirements in order to be treated as a
life insurance contract. We believe that the portfolios are being managed so as
to comply with the requirements.
Under current federal tax law, it is unclear as to the circumstances under which
you, because of the degree of control you exercise over the underlying
investments, and not us would be considered the owner of the shares of the
investment portfolios. If you are considered the owner of the investments, it
will result in the loss of the favorable tax treatment for the Policy. It is
unknown to what extent owners are permitted to select portfolios, to make
transfers among the portfolios or the number and type of portfolios owners may
select from without being considered the owner of the shares. If guidance from
the Internal Revenue Service is provided which is considered a new position,
then the guidance would generally be applied prospectively. However, if such
guidance is considered not to be a new position, it may be applied
retroactively. This would mean that you, as the owner of the Policy, could be
treated as the owner of the portfolios. Due to the uncertainty in this area, we
reserve the right to modify the Policy in an attempt to maintain favorable tax
treatment.
7. ACCESS TO YOUR MONEY
The Cash Surrender Value in your Policy is available: (1) by making a complete
surrender, or (2) by taking a loan from your Policy.
Loans
You may borrow money from us while the Policy is still in force. The Policy is
the only security we require for a Policy loan. You cannot borrow against your
Policy until the end of the right to examine period and you cannot borrow if the
Policy is in a grace period. Loans are considered distributions from the Policy
for tax purposes and the portion of the loan that has come from earnings will be
taxable to you and may be subject to a 10% penalty tax. Loan amounts are treated
as coming first from earnings and then from premiums. See "Tax Status" in Part
II for more details.
Loan Amount. The maximum loan amount is equal to 90% of the Policy Value less
any uncollected Deductions.
The minimum loan amount is $1,000. If total loans equal or exceed the Policy
Value, the Policy will terminate at the end of the grace period if an
appropriate loan repayment is not made.
Loan Account. When you make a loan, a portion of your Policy Value equal to the
loan will be transferred on a prorata basis from the portfolios to the loan
account. The loan account is a portion of our general account that contains
Policy Values attributable to Policy loans.
Loan Interest. Loan interest due on the Policy loan accrues daily at a current
rate of 4.75% per annum. The loan interest is due each Policy Anniversary and if
not paid will become part of the loan. When that happens, a portion of the
Policy Value equal to the loan interest due is transferred, on a prorata basis,
from the portfolios to the loan account.
Interest Credited. Amounts held in the loan account are credited daily with
interest, at a current rate of 4.0% per annum.
Effect of Loan. When you make a loan against your Policy, we will redeem
Valuation Units from the portfolios equal to the loan request and transfer that
amount to the loan account.
A Policy loan, whether or not repaid, will have a permanent effect on the
Policy. This is because the loan account does not share in the investment
results of the portfolio(s). If it is not repaid, the Policy loan and accrued
loan interest will reduce the amount of Policy Value. It will also reduce the
amount payable at death because Indebtedness is deducted from the death benefit.
Loan Repayments. You can repay all or part of a loan at any time while your
Policy is in force and the insured is alive. The minimum loan repayment amount
is $1,000. If you want to repay a loan in full, the loan repayment must equal
the loan plus all the accrued loan interest. When you repay a loan, we will
transfer the amount held in the loan account to the portfolios according to your
most recent instructions.
Unless you tell us otherwise, any payment we receive from you will go first to
pay any interest due and then to repay any loan.
Total Surrender and Termination of the Policy
You can terminate your Policy by notifying us in writing. We will pay you the
Cash Surrender Value. When that happens, the Policy will be terminated and there
will be no other benefits. When you make a total surrender we deduct any
uncollected Deductions. Partial surrenders are not allowed.
Your Policy will also terminate if the grace period has ended or the insured has
died.
8. OTHER INFORMATION
Allianz Life
Allianz Life Insurance Company of North America (Allianz Life), 1750 Hennepin
Avenue, Minneapolis, Minnesota 55403, was organized under the laws of the state
of Minnesota in 1896. Allianz Life offers fixed and variable life insurance and
annuities and group life, accident and health insurance. Allianz Life is
licensed to do business in 49 states and the District of Columbia. Allianz Life
is a wholly-owned subsidiary of Allianz Versicherugs-AG Holding.
NALAC Financial Plans, LLC is our wholly-owned subsidiary. It provides marketing
services and is the principal underwriter of the Policy. NALAC Financial Plans,
LLC is reimbursed for expenses incurred in the distribution of the Policies.
Administration for the Policy is provided at our Service Office:
Valuemark Service Center
300 Berwyn Park
P.O. Box 3031
Berwyn, Pennsylvania 19312,
(800) 624-0197
Year 2000
Allianz Life has initiated programs to ensure that all of the computer systems
utilized to provide services and administer policies will function properly in
the year 2000. An assessment of the total expected costs specifically related to
the year 2000 conversion has been completed. These costs are expensed as
incurred and total costs are not expected to have a significant effect on
Allianz Life's financial position or results of operations. Allianz Life
believes it is taking steps that are reasonably designed to address the
potential failure of computer systems used by its service providers and to
ensure its year 2000 program is completed on a timely basis. There can be no
assurance, however, that the steps taken by Allianz Life will be adequate to
avoid any adverse impact.
The Separate Account
We established a separate account, Allianz Life Separate Account A (Separate
Account), to hold the assets that underlie the Policies.
The assets of the Separate Account are held in our name on behalf of the
Separate Account and legally belong to us. However, those assets that underlie
the Policies, are not chargeable with liabilities arising out of any other
business we may conduct. All the income, gains and losses (realized or
unrealized) resulting from those assets are credited to or against the Policies
and not against any other policies we may issue.
Distributor
NALAC Financial Plans, LLC (NFP), 1750 Hennepin Ave., Minneapolis, MN 55403,
acts as the distributor of the Policies. Life Sales is an affiliate of Allianz
Life.
Commissions will be paid to broker-dealers who sell the Policies. Broker-dealers
will be paid commissions up to 6% of premiums and a trail commission up to .25%
per year of the Policy Value after the first Policy Year. In addition, under
certain circumstances, Allianz Life may pay certain sellers production bonuses
which will take into account, among other things, the total premiums which have
been paid under Policies associated with the broker-dealer. In addition, Allianz
Life and Franklin Advisers, Inc. and/or its affiliates may pay certain sellers
for other services not directly related to the sale of the Policies (such as
special marketing support allowances).
Sometimes, we enter into an agreement with the broker-dealer to pay the
broker-dealer persistency bonuses, in addition to the standard commission.
Suspension of Payments or Transfers
We may be required to suspend or postpone any payments or transfers for any
period when:
1. the New York Stock Exchange is closed
(other than customary weekend and holiday closings);
2. trading on the New York Stock Exchange is restricted;
3. an emergency exists as a result of which disposal of shares of
the portfolios is not reasonably practicable or Allianz Life
cannot reasonably value the shares of the portfolios;
4. during any other period when the Securities and Exchange
Commission, by order, so permits for the protection of owners.
Ownership
Owner. You, as the owner of the Policy, have all of the rights under the Policy.
If you die while the Policy is still in force and the insured is living,
ownership passes to a successor owner or if none, then your estate becomes the
owner.
Joint Owner. The Policy can be owned by joint owners. Authorization of both
joint owners is required for all Policy changes except for telephone transfers.
Beneficiary. The beneficiary is the person(s) or entity you name to receive any
death benefit. The beneficiary is named at the time the Policy is issued unless
changed at a later date. Unless an irrevocable beneficiary has been named, you
can change the beneficiary at any time before the insured dies. If there is an
irrevocable beneficiary, all Policy changes except premium allocations and
transfers require the consent of the beneficiary.
Assignment. You can transfer ownership (assign) of the Policy.
PART II - MORE INFORMATION
Management of Allianz Life
As of May 1, 1999, the directors and executive officers of the Company and their
principal occupations for the past 5 years are as follows:
Principal Occupations
Name During the Past Five Years
Lowell C. Anderson Chairman, President and Chief Executive Officer of
the Company since October, 1988. From 1985 to 1988,
Mr. Anderson was President and Chief Operating
Officer of the Company.
Herbert F. Hansmeyer Chairman of the Board of
Allianz Life of America Corp. Member of
the Board of Management of Allianz
Life-AG, Munich, Germany, since 1986;
formerly Chief Executive Officer of
Allianz Life Insurance Company, Los
Angeles, California; formerly President
and Chief Executive Officer of FFIC.
Dr. Jerry E. Robertson Former Executive Vice President, 3M/Life Sciences
Sector since November 1988.
Dr. Gerhard Rupprecht Chairman of the Board of Management - Allianz Life
Lebensversicherungs since 1979.
Michael P. Sullivan President, Chief Executive Officer and Director of
International Dairy Queen, Inc. since 1987.
Michael T. Westermeyer Vice President - Corporate Legal Officer and
Secretary of the Company since April 1997. Formerly
Second Vice President, Senior Counsel and Assistant
Secretary of the Company.
Paul Howman Vice President - Underwriting of the Company since
1995.
Robert S. James President - Individual Marketing Division of the
Company since March 31, 1995. Previously President
of Financial Markets Division.
Edward J. Bonach Senior Vice President - Chief Financial Officer and
Treasurer of the Company since 1993. Previously
Senior Vice President and Chief Actuary.
Ronald L. Wobbeking President - Mass Marketing Division of the Company
since September 1991. Previously Senior Vice
President Mass Marketing.
Rev. Dennis J. Dease President, University of St. Thomas, St. Paul since
July 1991.
James R. Campbell Executive Vice President of Norwest Corporation
since February 1988.
Robert M. Kimmitt Partner in the law firm of Wilmer, Cutler
& Pickering. Previously, from 1993 to 1997, managing
director of Lehman Brothers.
Administration of the Policies
While we have primary responsibility for all administration of the Policies and
the Separate Account, we have retained the services of Delaware Valley Financial
Services, Inc. ("DVFS" or "Valuemark Service Center") pursuant to an
Administrative Agreement. Such administrative services include issuance of the
Policies and maintenance of Policy owners' records. We pay all charges and fees
assessed by DVFS. DVFS serves as the administrator to various insurance
companies offering variable and fixed annuity and variable life insurance
contracts. Our ability to administer the Policies could be adversely affected
should DVFS elect to terminate the Agreement.
Voting
Pursuant to our view of present applicable law, we will vote the shares of the
portfolios at special meetings of shareholders in accordance with instructions
received from owners having a voting interest. We will vote shares for which we
have not received instructions. We will vote all shares in the same proportion
as the shares for which we have received instructions. We will vote our shares
in the same manner. Franklin Valuemark Funds does not hold regular meetings of
shareholders.
If the Investment Company Act of 1940 or any regulation thereunder is amended or
if the present interpretation thereof changes so as to permit us to vote the
shares in our own right, we may elect to do so.
The voting interests of an owner in Franklin Valuemark Funds is determined as
follows:
o Owners may cast one vote for each $100 of Policy Value which
is allocated to a portfolio on the record date. Fractional
votes are counted.
o The number of shares which a person has a right to vote will
be determined as of the date chosen by us. This will be done
not more than 60 days prior to the meeting of the fund. Voting
instructions will be solicited by written communication at
least 14 days prior to such meeting.
o Each owner having a voting interest will receive periodic
reports relating to the portfolios in which he or she has an
interest, proxy material and a form with which to give such
voting instructions.
Disregard of Voting Instructions. We may, when required to do so by state
insurance authorities, vote shares of the funds without regard to instructions
from owners. We will do this if such instructions would require the shares to be
voted to cause a portfolio to make, or refrain from making, investments which
would result in changes in the sub-classification or investment objectives of
the portfolio. We may also disapprove changes in the investment policy initiated
by owners or trustees/directors of the funds, if such disapproval:
o is reasonable and is based on a good faith determination by us
that the change would violate state or federal law;
o the change would not be consistent with the investment
objectives of the portfolios; or
o which varies from the general quality and nature of
investments and investment techniques used by other funds with
similar investment objectives underlying other variable
contracts offered by us or of an affiliated company.
In the event we do disregard voting instructions, a summary of this action and
the reasons for such action will be included in the next semi-annual report to
owners.
The Separate Account
We have established the separate account, Allianz Life Separate Account A
(Separate Account), to hold the assets that underlie the Policies. Our Board of
Directors adopted a resolution to establish the Separate Account under Minnesota
insurance law on May 31, 1985. We have registered the Separate Account with the
Securities and Exchange Commission as a unit investment trust under the
Investment Company Act of 1940. The Separate Account is divided into variable
options (also known as sub-accounts). Each variable option invests in one class
of shares of a portfolio.
The investment program of the Separate Account will not be changed without the
approval by the Insurance Commissioner of the state of Minnesota. If required,
the approval process is on file with the Commissioner of the state in which this
Policy is issued.
If the New York Stock Exchange is closed (except for holidays and weekends) or
trading is restricted due to an emergency as defined by the Securities and
Exchange Commission so that we cannot value Valuation Units, we may postpone all
procedures which require valuation of the Valuation Units until valuation is
possible.
Legal Opinions
Blazzard, Grodd & Hasenauer, P.C., Westport, Connecticut has provided advice on
certain matters relating to the federal securities and income tax laws in
connection with the policies.
Misstatement of Age or Sex
If the age or sex of the insured(s) is incorrectly stated, the death benefit
will be adjusted. This adjustment will reflect the death benefit that would have
been provided by the last cost of insurance at the correct age and/or sex of the
insured.
Our Right to Contest
We cannot contest the validity of the Policy, except in the case of fraud after
it has been in effect during the insured's lifetime for 2 years from the Policy
Date. If the Policy is reinstated, the 2-year period is measured from the date
of reinstatement. In addition, if the insured commits suicide in the 2-year
period, or such period as specified in state law, the benefit payable is limited
to premiums paid, less debt and less any surrenders.
Settlement Options
The Cash Surrender Value or the death proceeds may be paid in a lump sum or may
be applied to one of the Settlement Options. The Settlement Options are:
Option 1: Proceeds at Interest
Option 2: Payments for a Definite Period
Option 3: Life Annuity with Minimum Guarantee for Minimum Period
Option 4: Payments for a Designated Amount
Option 5: Life Annuity with Cash Refund
You or the beneficiary can select to have the Settlement Options payable on
either a fixed or variable basis.
Tax Status
NOTE: The following description is based upon our understanding of current
federal income tax law applicable to life insurance in general. We cannot
predict the probability that any changes in such laws will be made. Purchasers
are cautioned to seek competent tax advice regarding the possibility of such
changes. Section 7702 of the Internal Revenue Code of 1986, as amended ("Code"),
defines the term "life insurance contract" for purposes of the Code. We believe
that the Policies to be issued will qualify as "life insurance contracts" under
section 7702. We do not guarantee the tax status of the Policies. Purchasers
bear the complete risk that the Policies may not be treated as "life insurance"
under federal income tax laws. Purchasers should consult their own tax advisers.
It should be further understood that the following discussion is not exhaustive
and that special rules not described in this prospectus may be applicable in
certain situations.
Introduction. The discussion contained herein is general in nature and is not
intended as tax advice. Each person concerned should consult a competent tax
adviser. No attempt is made to consider any applicable state or other tax laws.
Moreover, the discussion herein is based upon Allianz Life's understanding of
current federal income tax laws as they are currently interpreted. No
representation is made regarding the likelihood of continuation of those current
federal income tax laws or of the current interpretations by the Internal
Revenue Service.
We are taxed as a life insurance company under the Code. For federal income tax
purposes, the Separate Account is not a separate entity and its operations form
a part of our operation.
Diversification. Section 817(h) of the Code imposes certain diversification
standards on the underlying assets of variable life insurance policies. The Code
provides that a variable life insurance policy will not be treated as life
insurance for any period (and any subsequent period) for which the investments
are not, in accordance with regulations prescribed by the United States Treasury
Department ("Treasury Department"), adequately diversified. Disqualification of
the Policy as a life insurance contract would result in imposition of federal
income tax to the owner with respect to earnings allocable to the Policy prior
to the receipt of payments under the Policy. The Code contains a safe harbor
provision which provides that life insurance policies such as the Policies meet
the diversification requirements if, as of the close of each quarter, the
underlying assets meet the diversification standards for a regulated investment
company and no more than fifty-five (55%) percent of the total assets consist of
cash, cash items, U.S. Government securities and securities of other regulated
investment companies. There is an exception for securities issued by the U.S.
Treasury in connection with variable life insurance policies.
On March 2, 1989, the Treasury Department issued Regulations (Treas. Reg.
Section 1.817-5), which established diversification requirements for the
investment portfolios underlying variable contracts such as the Policies. The
Regulations amplify the diversification requirements for variable contracts set
forth in the Code and provide an alternative to the safe harbor provision
described above. Under the Regulations, an investment portfolio will be deemed
adequately diversified if: (i) no more than 55% of the value of the total assets
of the portfolio is represented by any one investment; (ii) no more than 70% of
the value of the total assets of the portfolio is represented by any two
investments; (iii) no more than 80% of the value of the total assets of the
portfolio is represented by any three investments; and (iv) no more than 90% of
the value of the total assets of the portfolio is represented by any four
investments. For purposes of these Regulations, all securities of the same
issuer are treated as a single investment.
The Code provides that, for purposes of determining whether or not the
diversification standards imposed on the underlying assets of variable contracts
by Section 817(h) of the Code are met, "each United States government agency or
instrumentality shall be treated as a separate issuer".
We intend that each portfolio underlying the Policies will be managed by the
managers in such a manner as to comply with these diversification requirements.
The Treasury Department has indicated that the diversification Regulations do
not provide guidance regarding the circumstances where owner control of the
investments of the Separate Account causes the owner to be treated as the owner
of the assets of the Separate Account, thereby resulting in the loss of
favorable tax treatment for the Policy. At this time it cannot be determined
whether additional guidance will be provided and what standards may be contained
in such guidance.
The amount of owner control which may be exercised under the Policy is different
in some respects from the situations addressed in published rulings issued by
the Internal Revenue Service in which it was held that the policy owner was not
the owner of the assets of the separate account. It is unknown whether these
differences, such as the owner's ability to transfer among investment choices or
the number and type of investment choices available, would cause the owner to be
considered as the owner of the assets of the Separate Account.
In the event any future guidance or ruling is considered to set forth a new
position, such guidance or ruling will generally be applied only prospectively.
However, if such ruling or guidance was not considered to set forth a new
position, it may be applied retroactively resulting in the owner being
retroactively determined to be the owner of the assets of the Separate Account.
Due to the uncertainty in this area, we reserve the right to modify the Policy
in an attempt to maintain favorable tax treatment.
Tax Treatment of the Policy. The Policy has been designed to comply with the
definition of life insurance contained in Section 7702 of the Code. Although
some interim guidance has been provided and proposed regulations have been
issued, final regulations have not been adopted. Section 7702 of the Code
requires the use of reasonable mortality and other expense charges. In
establishing these charges, we have relied on the interim guidance provided in
IRS Notice 88-128 and proposed regulations issued on July 5, 1991. Currently,
there is even less guidance as to a Policy issued on a substandard risk basis
and thus it is even less clear whether a Policy issued on such basis would meet
the requirements of Section 7702 of the Code.
While we have attempted to comply with Section 7702, the law in this area is
very complex and unclear. There is a risk, therefore, that the Internal Revenue
Service will not concur with our interpretations of Section 7702 that were made
in determining such compliance. In the event the Policy is determined not to
comply, it would not qualify for the favorable tax treatment usually accorded
life insurance policies. Owners should consult their tax advisers with respect
to the tax consequences of purchasing the Policy.
Policy Proceeds. Loan proceeds and/or surrender payments from the Policies are
fully taxable to the extent of income in the Policy and may further be subject
to an additional 10% federal income tax penalty. (See "Tax Treatment of Loans
and Surrenders".) Otherwise, the Policy should receive the same federal income
tax treatment as any other type of life insurance. As such, the death benefit
thereunder is excludable from the gross income of the beneficiary under Section
101(a) of the Code. Furthermore, the owner is not deemed to be in constructive
receipt of the Policy Value or Cash Surrender Value, including increments
thereon, under a Policy until surrender thereof. If the death proceeds are to be
paid under one of the Settlement Options, the payments will be pro rated between
the amount attributable to the death benefit which will be excludable from the
beneficiary's income and the amount attributable to interest which will be
includable in the beneficiary's income.
Federal, state and local estate, inheritance and other tax consequences of
ownership, or receipt of Policy proceeds, depend on the circumstances of each
Policy owner or beneficiary. Owners and beneficiaries should consult their tax
advisers.
Tax Treatment of Loans and Surrenders. The Code alters the tax treatment
accorded to loans and certain distributions from life insurance policies which
are deemed to be "modified endowment contracts". The Policy's premium
requirements are such that Policies issued on or after June 21, 1988 will be
treated as modified endowment contracts. A Policy received in exchange for a
modified endowment contract is also a modified endowment contract regardless of
whether it meets the 7-pay test.
However, an exchange under Section 1035 of the Code of a life insurance policy
entered into before June 21, 1988 for the Policy will not cause the Policy to be
treated as a modified endowment contract if no additional premiums are paid.
A Policy that was entered into prior to June 21, 1988 may be deemed to be a
modified endowment contract if it is materially changed and fails to meet the
7-pay test. A Policy fails to meet the 7-pay test when the cumulative amount
paid under the Policy at any time during the first 7 Policy Years exceeds the
sum of the net level premiums which would have been paid on or before such time
if the Policy provided for paid-up future benefits after the payment of 7 level
annual premiums. A material change would include any increase in the future
benefits provided under a Policy unless the increase is attributable to: (1) the
payment of premiums necessary to fund the lowest death benefit and qualified
additional benefits payable in the first seven Policy Years; or (2) the
crediting of interest or other earnings (including policyholder dividends) with
respect to such premiums.
Assuming that the Policy is treated as a modified endowment contract, surrenders
and/or loan proceeds are taxable to the extent of income in the Policy. Such
distributions are deemed to be on a last-in, first-out basis, which means the
taxable income is distributed first. Loan proceeds and/or surrender payments may
also be subject to an additional 10% federal income tax penalty applied to the
income portion of such distribution. The penalty shall not apply, however, to
any distribution: (1) made on or after the date on which the taxpayer reaches
age 59 1/2; (2) which is attributable to the taxpayer becoming disabled (within
the meaning of Section 72(m)(7) of the Code); or (3) which is part of a series
of substantially equal periodic payments made not less frequently than annually
for the life (or life expectancy) of the taxpayer or the joint lives (or joint
life expectancies) of such taxpayer and his or her beneficiary. Furthermore,
only under limited circumstances will interest paid on Policy loans be tax
deductible.
If a Policy is not classified as a modified endowment contract, then any
surrenders shall be treated first as a recovery of the investment in the Policy
which would not be received as taxable income. However, if a distribution is the
result of a reduction in benefits under the Policy within the first fifteen
years after the Policy is issued in order to comply with Section 7702, such
distribution will, under rules set forth in Section 7702, be taxed as ordinary
income to the extent of income in the Policy.
Any loans from a Policy which is not classified as a modified endowment
contract, will be treated as indebtedness of the Owner and not a distribution.
Upon complete surrender or when maturity benefits are paid, if the amount
received plus the policy debt exceeds the total premiums paid that are not
treated as previously surrendered by the Policy Owner, the excess generally will
be treated as ordinary income.
Policy owners should seek competent tax advice on the tax consequences of taking
loans, making a total surrender or making any material modifications to their
Policies.
Multiple Policies. The Code further provides that multiple modified endowment
contracts that are issued within a calendar year period to the same owner by one
company or its affiliates are treated as one modified endowment contract for
purposes of determining the taxable portion of any loans or distributions. Such
treatment may result in adverse tax consequences including more rapid taxation
of the loans or distributed amounts from such combination of contracts. Policy
owners should consult a tax adviser prior to purchasing more than one modified
endowment contract in any calendar year period.
Tax Treatment of Assignments. An assignment of a Policy or the change of
ownership of a Policy may be a taxable event. Policy owners should therefore
consult competent tax advisers should they wish to assign or change the owner of
their Policies.
Qualified Plans. The Policies may be used in conjunction with certain qualified
plans. Because the rules governing such use are complex, a purchaser should not
do so until he has consulted a competent qualified plans consultant.
Income Tax Withholding
All distributions or the portion thereof which is includable in gross income of
the Policy owner are subject to federal income tax withholding. However, the
Policy owner in most cases may elect not to have taxes withheld. The Policy
owner may be required to pay penalties under the estimated tax rules, if the
Policy owner's withholding and estimated tax payments are insufficient.
Reports to Owners
We will send to each owner semi-annual and annual reports of the portfolios.
Within 30 days after each Policy Anniversary, an annual statement will be sent
to each owner. The statement will show the current amount of death benefit
payable under the Policy, the current Policy Value, the current Cash Surrender
Value, current debt and will show all transactions previously confirmed. The
statement will also show premiums paid and all charges deducted during the
Policy Year.
Confirmations will be mailed to Policy owners within seven days of the
transaction of: (a) the receipt of premium; (b) any transfer between portfolios;
(c) any loan, interest repayment, or loan repayment; (d) any surrender; (e)
exercise of the free look privilege; and (f) payment of the death benefit under
the Policy. Upon request a Policy owner shall be entitled to a receipt of
premium payment.
Legal Proceedings
There are no legal proceedings to which the Separate Account or the Distributor
is a party or to which the assets of the Separate Account are subject. Allianz
Life is not involved in any litigation that is of material importance in
relation to its total assets or that relates to the Separate Account.
Experts
The financial statements of Allianz Life Variable Account A and the consolidated
financial statements of Allianz Life as of and for the year ended December 31,
1998 included in this Prospectus have been audited by KPMG Peat Marwick LLP,
independent auditors, as indicated in their reports included in this prospectus,
and are included herein, in reliance upon such reports and upon the authority of
said firm as experts in accounting and auditing.
Financial Statements
The consolidated financial statements of Allianz Life that are included in this
prospectus should be considered only as bearing upon our ability to meet our
obligations under the Policy.
[FINANCIAL STATEMENTS TO BE FILED BY AMENDMENT]
APPENDIX A
Illustration of Policy Values
The following tables show you how Policy Values, Cash Surrender Values and death
benefits of your Policy will change with the investment experience of the
portfolios. The Policy Values, Cash Surrender Values and death benefits in the
tables take into account all charges and deductions against the Policy. These
tables assume that the cost of insurance rates for the Policy are based on the
current and guaranteed rates appropriate to the class shown. These tables also
assume that you paid a $100,000 single premium. For premiums of other than
$100,000, the tables shown can be adjusted (i.e. for a $20,000 premium, multiply
the tables by $20,000 divided by 100,000 or for a $200,000 premium, multiply the
attached tables by $200,000 divided by 100,000). These tables all assume that
the insured, both male and female, is in the most favorable risk status, i.e.,
non-smoker. For insureds who are classified as smoker or less favorable risk
status, the cost of insurance will be greater and therefore Policy Values will
be less given the same assumed hypothetical gross annual investment rates of
return.
The tables assume gross investment returns of 0%, 6% and 12% to be level for all
years shown. The values would be different if the rates of return averaged 0%,
6% and 12% over the period of years but fluctuated above and below those
averages during individual years.
The daily management and portfolio administration fees are assumed to be ___% on
an annual basis, of the net assets of the Class 1 portfolio of Franklin
Valuemark Funds (Trust) (which is the average of the management and portfolio
administration fees assessed in 1998 weighted by portfolio value as of
12/31/98). The values also assume that each Class 1 portfolio of the Trust will
incur expenses annually which are assumed to be ___% of the average net assets
of the portfolio. This is the average in 1998, weighted by portfolio value as of
12/31/98. The variable options will be assessed for mortality and expense risks
at an annual rate of 0.60% of the average daily net assets of the variable
options and for administrative expenses at an annual rate of 0.15% of the
average daily net assets of the variable options. After taking these expenses
and charges into consideration, the illustrated gross annual investment rates of
0%, 6% and 12% are equivalent to net rates of ___%, ___% and ___%.
Allianz Life deducts the cost of insurance for a Policy Processing Period from
the Policy Values. The cost of insurance rate is based on the sex (where
permitted by state law), attained age and rate class of the insured.
Upon request, we will provide a comparable illustration based upon the attained
age, sex (where permitted by state law) and rate class of the proposed insured
and for the face amount or premium requested.
[ILLUSTRATIONS TO BE FILED BY AMENDMENT]
<TABLE>
<CAPTION>
APPENDIX B
Table of Net Single Premium Factors
Attained FACTORS Attained FACTORS Attained FACTORS
--------------- ------------- -------------
Age Male* Female* Age Male* Female* Age Male* Female*
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
0 12.62467 14.69383 35 4.30327 4.82748 70 1.52757 1.66607
1 12.50646 14.48692 36 4.16038 4.66752 71 1.49533 1.62425
2 12.16372 14.08281 37 4.02237 4.51338 72 1.46481 1.58427
3 11.82118 13.67851 38 3.88934 4.36506 73 1.43608 1.54629
4 11.48209 13.27838 39 3.76113 4.22232 74 1.40915 1.51041
5 11.14463 12.88451 40 3.63755 4.08498 75 1.38398 1.47664
6 10.80849 12.49577 41 3.51861 3.95303 76 1.36040 1.44488
7 10.47450 12.11263 42 3.40410 3.82624 77 1.33828 1.41498
8 10.14347 11.73553 43 3.29382 3.70425 78 1.31741 1.38673
9 9.81784 11.36605 44 3.18765 3.58674 79 1.29764 1.35999
10 9.49960 11.00434 45 3.08543 3.47344 80 1.27888 1.33468
11 9.19034 10.65053 46 2.98710 3.36425 81 1.26112 1.31079
12 8.89337 10.30762 47 2.89249 3.25897 82 1.24440 1.28836
13 8.61119 9.97611 48 2.80143 3.15749 83 1.22879 1.26746
14 8.34507 9.65635 49 2.71381 3.05962 84 1.21434 1.24807
15 8.09470 9.34852 50 2.62950 2.96530 85 1.20100 1.22998
16 7.85593 9.04683 51 2.54845 2.87445 86 1.18868 1.21335
17 7.62788 8.75962 52 2.47062 2.78696 87 1.17723 1.19789
18 7.40829 8.48131 53 2.39595 2.70281 88 1.16647 1.18342
19 7.19529 8.21157 54 2.32443 2.62191 89 1.15617 1.16975
20 6.98773 7.95007 55 2.25594 2.54404 90 1.14612 1.15668
21 6.78427 7.69599 56 2.19040 2.46904 91 1.13609 1.14399
22 6.58380 7.44915 57 2.12767 2.39670 92 1.12581 1.13142
23 6.38615 7.20889 58 2.06757 2.32674 93 1.11497 1.11871
24 6.19122 6.97553 59 2.01001 2.25900 94 1.10328 1.10559
25 5.99922 6.74889 60 1.95494 2.19345 95 1.09064 1.09192
26 5.81010 6.52878 61 1.90230 2.13013 96 1.07717 1.07777
27 5.62462 6.31538 62 1.85199 2.06916 97 1.06337 1.06359
28 5.44313 6.10815 63 1.80404 2.01067 98 1.05029 1.05034
29 5.26593 5.90723 64 1.75842 1.95479 99 1.04000 1.04000
30 5.09324 5.71269 65 1.71504 1.90144
31 4.92522 5.52403 66 1.67380 1.85048
32 4.76215 5.34132 67 1.63456 1.80168
33 4.60408 5.16433 68 1.59713 1.75478
34 4.45114 4.99306 69 1.56150 1.70960
<FN>
*In states requiring unisex rates, male rates should apply.
</FN>
</TABLE>
PART II
UNDERTAKINGS TO FILE REPORTS
Subject to the terms and conditions of Section 15(d) of the Securities Exchange
Act of 1934, the undersigned registrant hereby undertakes to file with the
Securities and Exchange Commission such supplementary and periodic information,
documents, and reports as may be prescribed by any rule or regulation of the
Commission theretofore or hereafter duly adopted pursuant to authority conferred
in that section.
REPRESENTATION
Allianz Life Insurance Compnay of North America ("Company") hereby represents
that the fees and charges deducted under the Policy described in the Prospectus,
in the aggregate, are reasonable in relation to the services rendered, the
expenses to be incurred and the risks assumed by the Company.
INDEMNIFICATION
Under its Bylaws, Article XI, the Company indemnifies, to the extent permitted
by the laws of the State of Minnesota, each person (and the heirs, executors,
and administrators of such person) made or threatened to be made a party to any
action, civil or criminal, by reason of being or having been a director, officer
or employee of the Company (or by reason of serving any other organization at
the request of the Company).
Insofar as indemnification for liabilities arising under the Securities Act of
1933 may be permitted to directors, officers and controlling persons of the
Company pursuant to such provisions of the bylaws or statutes or otherwise, the
Company has been advised that in the opinion of the Securities and Exchange
Commission, such indemnification is against public policy as expressed in said
Act and is, therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment by the Company
of expenses incurred or paid by a director, officer or controlling person of the
Company in the successful defense of any such action, suit or proceeding) is
asserted by such director, officer or controlling person in connection with the
Policies issued by the Variable Account, 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 said Act and will be governed by the
final adjudication of such issue.
CONTENTS OF REGISTRATION STATEMENT
This Registration Statement comprises the following papers and documents:
The facing sheet
The Prospectus consisting of 80 pages
Representations
The signatures
Part II
Other Information
Page 2
The following exhibits:
A. Copies of all exhibits required by paragraph A of instructions for
Exhibits in Form N-8B-2.
1. Resolution of the Board of Directors of the Company (2)
2. Not Applicable
3.a. Principal Underwriter's Agreement (4)
3.b. General Agency Agreement (4)
4. Not Applicable
5. Individual Single Premium Variable Life Insurance Policy (3)
6.a. Articles of Incorporation of the Company (2)
6.b. Bylaws of the Company (2)
7. Not Applicable
8. Not Applicable
9.a. Administrative Agreement (1)
9.b. Fund Participation Agreement (3)
10. Application Form (3)
12. Illustrative Calculations for the Exchange of the Single Premium
Variable Life Insurance Policy for a Whole Life Policy (6)
13. Powers of Attorney (5)
27. Not Applicable
B. Opinion and Consent of Counsel
To be filed by Amendment
C. Consent of Actuary
To be filed by Amendment
D. Independent Auditors' Consent
To be filed by Amendment
(1) incorporated by reference to Pre-Effective Amendment No. 1 to Form S-6, File
No. 33-11158 filed on October 19, 1987
(2) incorporated by reference to Post-Effective Amendment No. 14 to Registrants
Form S-6 electronically filed on November 1, 1995.
(3) incorporated by reference to Post-Effective Amendment No. 15 to Registrants
Form S-6 electronically filed on April 23, 1996.
(4) incorporated by reference to Post-Effective Amendment No. 17 to Registrants
Form S-6 electronically filed on April 29, 1997.
(5) incorporated by reference to Post-Effective Amendment No. 19 to Registrants
Form S-6 electronically filed on April 29, 1998.
(6) to be filed by amendment
SIGNATURES
As required by the Securities Act of 1933, the Registrant certifies that it has
duly caused this Registration Statement to be signed on its behalf by the
undersigned thereunto duly authorized in the City of Minneapolis and State of
Minnesota, on this 27th day of January, 1999.
<TABLE>
<CAPTION>
<S> <C> <C>
ALLIANZ LIFE
VARIABLE ACCOUNT A
(Registrant)
By: ALLIANZ LIFE INSURANCE COMPANY
OF NORTH AMERICA
(Depositor)
By: /S/ Michael T. Westermeyer
------------------
Michael T. Westermeyer
Attest: /S/ Catherine Mielke
---------------------------
</TABLE>
Pursuant to the requirements of the Securities Act of 1933, this registration
statement has been signed by the following persons in the capacities and on the
dates indicated.
Signature and Title
<TABLE>
<CAPTION>
<S> <C> <C>
Chairman of the Board,
Lowell C. Anderson* President 01-27-99
Lowell C. Anderson and Chief Executive Officer
Herbert F. Hansmeyer* Director 01-27-99
Herbert F. Hansmeyer
Michael P. Sullivan* Director 01-27-99
Michael P. Sullivan
Dr.Jerry E. Robertson* Director 01-27-99
Dr.Jerry E. Robertson
Dr. Gerhard Rupprecht* Director 01-27-99
Dr. Gerhard Rupprecht
Edward J. Bonach* Chief Financial Officer 01-27-99
Edward J. Bonach
Rev. Dennis J. Dease* Director 01-27-99
Rev. Dennis J. Dease
James R. Campbell* Director 01-27-99
James R. Campbell
Robert M. Kimmitt* Director 01-27-99
Robert M. Kimmitt
</TABLE>
*By Power of Attorney
By: /S/ Michael T. Westermeyer
---------------------------------
Michael T. Westermeyer
Attorney-in-Fact
EXHIBITS
TO
POST-EFFECTIVE AMENDMENT NO. 20
TO
FORM S-6
ALLIANZ LIFE VARIABLE ACCOUNT A
ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
INDEX TO EXHIBITS
To be filed by Amendment
