SUPPLEMENT DATED JANUARY 5, 2001
to the Prospectus of
USALLIANZ ALTERITY
Flexible Premium Variable Annuity
Dated May 1, 2000, as amended August 11, 2000
USALLIANZ REWARDS
Flexible Premium Variable Annuity
Dated May 1, 2000, as amended August 11, 2000
ISSUED BY
Allianz Life Insurance Company of North America
Allianz Life Variable Account B
This supplement updates certain information contained in the prospectus
and supersedes any inconsistent information. You should attach this supplement
to the prospectus and retain it with the prospectus for future reference. You
may obtain an additional copy of the prospectus, free of charge, by writing or
calling Allianz Life Insurance Company of North America (Allianz Life) at the
address or telephone number set forth below.
The purpose of this supplement is to notify you of a proposal to
substitute shares of the Templeton Pacific Growth Securities Fund of Franklin
Templeton Variable Insurance Products Trust (the "Trust") with shares of the
Trust's Templeton International Securities Fund (the "Substitution"). On
December 21, 2000, Allianz Life an application with the Securities and Exchange
Commission (the "Commission") requesting an order approving the Substitution.
Upon obtaining the order from the Commission approving the Substitution, and
subject to any prior approval by applicable insurance authorities, Allianz Life
and Allianz Life Variable Account B propose to effect the Substitution as soon
as is practicable.
Allianz Life believes that the Templeton International Securities Fund
is an appropriate replacement for the Templeton Pacific Growth Securities Fund
because the Templeton International Securities Fund has a similar investment
objective to the Templeton Pacific Growth Securities Fund, generally invests a
portion of its assets in Pacific Rim common stock, has better performance, and
has a lower expense ratio, which may decline as a result of the influx of assets
resulting from the Substitution.
Contract owners will receive a Notice within five (5) days after the
Substitution that the Substitution has taken place. For a period of thirty-one
(31) days from the mailing of the Notice, Contract owners may transfer all
assets, as substituted, to any other available subaccount without limitation or
charge and without any such transfer counting as one of the limited number of
transfers permitted in a contract year free of charge. After such thirty-one
(31) day period, any transfers will be subject to the restrictions described in
the prospectus. You may obtain a prospectus by writing or calling Allianz Life
at the address or telephone number set out below.
Effective immediately, the Templeton Pacific Growth Securities Fund is
no longer available under these contracts to accept any new or additional
premium or transfers from other Portfolios.
Allianz Life Insurance Company of North America
1750 Hennepin Avenue, Mpls, MN 55403
(800)-542-5427
