V4 *P1
FRANKLIN VALUEMARK(R) IV
ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
ALLIANZ LIFE VARIABLE ACCOUNT B
Supplement Dated December 1, 1998 to
Prospectus dated May 1, 1998
The following replaces the second paragraph under "Section 10. Other Information
- - Distribution" contained in the Prospectus:
Commissions will be paid to broker-dealers who sell the Contracts.
Broker-dealers will be paid commissions up to 7.5% of Purchase Payments.
Sometimes, Allianz Life enters into an agreement with the broker-dealer to pay
the broker-dealer commissions as a combination of a certain amount of the
commission at the time of sale and a trail commission (which when totaled
could exceed 7.5% of Purchase Payments). In addition, Allianz Life and
Advisers and/or its affiliates may pay certain sellers for other services not
directly related to the sale of the Contracts (such as special marketing
support allowances). Commissions may be recovered from a broker-dealer if a
surrender occurs within 12 months of a Purchase Payment.
The following changes are made to the Franklin Valuemark Funds' Annual Expenses
section under "Fee Table":
1)The following chart restates 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 prospectus.
<TABLE>
<CAPTION>
Management Total
and Portfolio Other 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) Add the following language to footnote 2:
For the Global Health Care Securities and Value Securities Funds, 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.
