oVIP STKP1
SUPPLEMENT DATED AUGUST 3, 1998
TO THE PROSPECTUS DATED MAY 1, 1998
OF
FRANKLIN TEMPLETON VALUEMARK(R) INCOME PLUS
INDIVIDUAL IMMEDIATE VARIABLE ANNUITY
ALLIANZ LIFE VARIABLE ACCOUNT B
A. The following information replaces the section entitled "Contract Owner
Transaction Fees" under the section entitled "Allianz Life Variable Account B
Fee Table" contained in the Prospectus:
CONTRACT OWNER TRANSACTION FEES
Commutation Fee*
(as a percentage of the Total Liquidation Value liquidated)
CONTRACT YEAR CHARGE
-----------------------------------
1 5%
2 5%
3 4%
4 3%
5 2%
6 (& thereafter) 1%
*After the first Contract Year, a Contract Owner may request one liquidation
from the Contract each Contract year if Annuity Options 2 or 4 have been
selected. If Annuity Option 6 has been selected, the Contract Owner may
request a liquidation once each Contract Year beginning in the first year. See
also "Annuity Provisions - Contract Liquidations (Withdrawals)".
<TABLE>
<CAPTION>
B. The portfolio expense table, which appears in the section entitled "Allianz Life Variable Account B Fee Table" in the annuity
prospectus, is amended by:
1)Restating certain Portfolios' "Management and Portfolio Administration Fees" and the "Other Expenses" as indicated below. The
Portfolio Administration Fees for these Portfolios were inadvertently included under "Other Expenses" rather than under
"Management and Portfolio Administration Fees." Please note that "Total Annual Expenses" for each Portfolio shown below are the
same as in the May 1, 1998 prospectus.
MANAGEMENT
AND PORTFOLIO OTHER TOTAL ANNUAL
PORTFOLIO ADMINISTRATION FEES EXPENSES EXPENSES
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<S> <C> <C> <C>
Mutual Discovery Securities Fund ............................................... .95%* .11% 1.06%
Mutual Shares Securities Fund .................................................. .75%* .05% .80%
Templeton Global Asset Allocation Fund ......................................... .80%* .14% .94%
Templeton International Smaller Companies Fund ................................. 1.00%* .06% 1.06%
<FN>
*Includes a .15% Administration Fee which is a direct expense of the Portfolio.
</FN>
</TABLE>
2) Adding the following language:
Franklin Advisers, Inc. and Franklin Templeton Services, Inc. have agreed in
advance to waive or limit their Management and Portfolio Administration Fees
and to assume as their own expense certain expenses otherwise payable by the
new Value Securities Funds as necessary so that through at least December 31,
1998, Total Annual Expenses do not exceed 1.00% of its average net assets. As
noted in the May 1, 1998 prospectus, estimated total annual expenses are not
anticipated to exceed 1.00% of its average net assets.
