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TABLE OF CONTENTSPageDEFINITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .SUMMARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .SUMMARY OF EXPENSES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .EXAMPLE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .REDEMPTION FEES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .DISTRIBUTION COSTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .CONDENSED FINANCIAL INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .ZALICO, THE MVA OPTION, THE SEPARATE ACCOUNT AND THE FUNDS . . . . . . . . . . . . . . .A. Zurich American Life Insurance Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .B. Risks of Managing General Account Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .C. Financial Condition of the Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .D. The Guarantee Periods of the MVA Option . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E. The Separate Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .F. The Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .G. Selection of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .H. Change of Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .FIXED ACCOUNT OPTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .THE CONTRACTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .A. General Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .B. The Accumulation Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1. Application of Purchase Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2. Accumulation Unit Value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3. Guarantee Periods of the MVA Option . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4. Establishment of Guaranteed Interest Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5. Contract Value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6. Transfers During the Accumulation Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7. Policy and Procedures Regarding Disruptive Trading and Market Timing . . . . . . . . . . . . .8. Withdrawals During the Accumulation Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9. Market Value Adjustment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10. Guaranteed Death Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .CONTRACT CHARGES AND EXPENSES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .A. Charges Against The Separate Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1. Mortality and Expense Risk Charge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2. Administration Charge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3. Records Maintenance Charge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4. Withdrawal Charge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5. Optional Guaranteed Retirement Income Benefit (“GRIB”) Rider Charge . . . . . . . . . . . . .6. Transfer Charge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7. Investment Management Fees and Other Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8. State and Local Government Premium Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9. Exceptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .THE ANNUITY PERIOD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .A. Annuity Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .B. Annuity Options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .C. Transfers During the Annuity Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .D. Annuity Unit Value Under Variable Annuity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .PAGE 33538404142434343434445454545464647474849

TABLE OF CONTENTS (CONTINUED)PageE. First Periodic Payment Under Variable Annuity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49F. Subsequent Periodic Payments Under Variable Annuity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50G. Fixed Annuity Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50H. Death Benefit Proceeds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50I. GRIB Rider . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50FEDERAL TAX CONSIDERATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50A. Taxation of Non-Qualified Plan Contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50B. Taxation of Qualified Plan Contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 521. Qualified Plan Types . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 522. Withdrawals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 543. Direct Rollovers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55C. Tax Status of the Contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55FEDERAL INCOME TAX WITHHOLDING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57OTHER TAX ISSUES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57A. Our Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57B. Federal Estate Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57C. Generation-Skipping Transfer Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57D. The American Taxpayer Relief Act of 2012 (“ATRA”) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57E. Federal Defense of Marriage Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58F. Annuity Purchases by Residents of Puerto Rico . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58G. Annuity Purchases by Nonresident Aliens and Foreign Corporations . . . . . . . . . . . . . . . . . . . . . 58H. Foreign Tax Credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58I. Possible Tax Law Changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58SENDING FORMS AND WRITTEN REQUESTS IN GOOD ORDER . . . . . . . . . . . . . . . . . . . . . . . . . 59SIGNATURE GUARANTEES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59DISTRIBUTION OF CONTRACTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59VOTING RIGHTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61REPORTS TO CONTRACT OWNERS AND INQUIRIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61DOLLAR COST AVERAGING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61SYSTEMATIC WITHDRAWAL PLAN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62EXPERTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62LEGAL PROCEEDINGS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62FINANCIAL STATEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63CONTRACTS ISSUED BEFORE NOVEMBER 12, 2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63A. Guaranteed Retirement Income Benefit: General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63B. Annuity Payments with GRIB . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63C. Commutable Annuitization Option . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65D. Effect of Death of Owner or Annuitant on GRIB . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66STATEMENT OF ADDITIONAL INFORMATION TABLE OF CONTENTS . . . . . . . . . . . . . . . . . . 68APPENDIX A ILLUSTRATION OF THE “FLOOR” ON THE DOWNWARD MARKET VALUEADJUSTMENT (MVA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-1APPENDIX B ZURICH AMERICAN LIFE INSURANCE COMPANY DEFERRED FIXED ANDVARIABLE ANNUITY IRA, ROTH IRA AND SIMPLE IRA DISCLOSURE STATEMENT . . . . . . B-1APPENDIX C CONDENSED FINANCIAL INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C-1PAGE 4

DEFINITIONSThe following terms as used in this Prospectus have the indicated meanings:Accumulated Guarantee Period Value—The sum of your Guarantee Period Values.Accumulation Period—The period between the Date of Issue of a Contract and the Annuity Date.Accumulation Unit—A unit of measurement used to determine the value of each Subaccount during theAccumulation Period.Annuitant—The person designated to receive or who is actually receiving annuity payments and uponthe continuation of whose life annuity payments involving life contingencies depend.Annuity Date—The date on which annuity payments are to commence.Annuity Option—One of several methods by which annuity payments can be made.Annuity Period—The period starting on the Annuity Date.Annuity Unit—A unit of measurement used to determine the amount of Variable Annuity payments.Beneficiary—The person designated to receive any benefits under a Contract upon the death of theAnnuitant or the Owner prior to the Annuity Period.Company (“we”, “us”, “our”, “ZALICO”)—Zurich American Life Insurance Company. Our HomeOffice is located at 1400 American Lane, Schaumburg, Illinois 60196. For Contract services, you maycontact the Service Center at Scudder DestinationsSM Service Team, PO Box 19097, Greenville, SouthCarolina, 29602-9097 or 1-800-449-0523.Contract—A Variable, Fixed and Market Value Adjusted Annuity Contract offered on an individual orgroup basis. Contracts issued on a group basis are represented by a certificate. Contracts issued on anindividual basis are represented by an individual annuity contract.Contract Value—The sum of the values of your Separate Account Contract Value, AccumulatedGuarantee Period Value and Fixed Account Contract Value.Contract Year—Period between anniversaries of the Contract’s Date of Issue.Contract Quarter—Periods between quarterly anniversaries of the Contract’s Date of Issue.Contribution Year—Each one year period following the date a Purchase Payment is made.Date of Issue—The date on which the first Contract Year commences.Effective Date—The date that the endorsement to your Contract adding enhancements to the MVAOption (the “MVA Endorsement”) became effective, which is April 1, 2005.Fixed Account—The General Account of ZALICO to which you may allocate all or a portion ofPurchase Payments or Contract Value. We guarantee a minimum rate of interest on Purchase Paymentsallocated to the Fixed Account.Fixed Account Contract Value—The value of your Contract interest in the Fixed Account.Fixed Annuity—An annuity under which we guarantee the amount of each annuity payment; it doesnot vary with the investment experience of a Subaccount.Fund or Funds—AIM Variable Insurance Funds (Invesco Variable Insurance Funds), The AlgerPortfolios, Dreyfus Investment Portfolios, The Dreyfus Socially Responsible Growth Fund, Inc., DeutscheInvestments VIT Funds (formerly DWS Investments VIT Funds), Deutsche Variable Series I (formerly DWSVariable Series I) and Deutsche Variable Series II (formerly DWS Variable Series II), including anyPortfolios thereunder.PAGE 5

General Account—All our assets other than those allocated to any separate account.Guaranteed Interest Rate—The rate of interest we establish for a given Guarantee Period.Guarantee Period—The time during which we credit your allocation with a Guaranteed Interest Rate.Guarantee Periods may range from one to ten years, at our option. If you withdraw money from aGuarantee Period before its term has expired, you will be assessed a Market Value Adjustment.Guarantee Period Value—The value of your Contract Value in a Guarantee Period is the sum of your:(1) Purchase Payment allocated or amount transferred to a Guarantee Period; plus (2) interest credited;minus (3) withdrawals, previously assessed Withdrawal Charges and transfers; and (4) as adjusted for anyapplicable Market Value Adjustment previously made.Home Office—The address of our Home Office is 1400 American Lane, Schaumburg, Illinois 60196.Market Adjusted Value—A Guarantee Period Value adjusted by the Market Value Adjustment formulaon any date prior to the end of a Guarantee Period.Market Value Adjustment (“MVA”)—An adjustment of amounts held in a Guarantee Period that wecompute in accordance with the Market Value Adjustment formula in your Contract if you take awithdrawal prior to the end of that Guarantee Period. The adjustment reflects the change in the value of theGuarantee Period Value due to changes in interest rates since the date the Guarantee Period started. Anydownward Market Value Adjustment is subject to the MVA Floor described in the MVA Endorsementissued on April 1, 2005 and described herein.Non-Qualified Plan Contract—A Contract which does not receive favorable tax treatment underSections 401, 403, 408, 408A or 457 of the Internal Revenue Code.Owner (“you”, “your”, “yours”)—The person designated in the Contract as having the privileges ofownership defined in the Contract.Portfolio—A series of a Fund with its own objective and policies, which represents shares of beneficialinterest in a separate portfolio of securities and other assets. Portfolio is sometimes referred to herein as aFund.Purchase Payments—Amounts paid to us by you or on your behalf.Qualified Plan Contract—A Contract issued in connection with a retirement plan which receivesfavorable tax treatment under Sections 401, 403, 408, 408A or 457 of the Internal Revenue Code.Separate Account—The ZALICO Variable Annuity Separate Account.Separate Account Contract Value—The sum of your Subaccount Values.Service Center—The address of our Service Center is Scudder Destinationssm Service Team,PO Box 19097, Greenville, South Carolina, 29602-9097. The overnight address is: Scudder DestinationssmService Team, 2000 Wade Hampton Boulevard, Greenville, SC 29615-1064. Concentrix InsuranceAdministration Solutions Corporation (formerly IBM Business Transformation Outsourcing InsuranceService Corporation) is the administrator of the Contract. You can call the Service Center toll-free at1-800-449-0523.Start Date—The later of the Effective Date of the MVA Endorsement or the beginning of a newGuarantee Period.Subaccounts—The twenty-one subdivisions of the Separate Account, the assets of which consist solelyof shares of the corresponding Portfolios or Funds.Subaccount Value—The value of your interest in each Subaccount.Valuation Date—Each day when the New York Stock Exchange is open for trading, as well as each dayotherwise required.PAGE 6

Valuation Period—The interval of time between two consecutive Valuation Dates.Variable Annuity—An annuity with payments varying in amount in accordance with the investmentexperience of the Subaccount(s) in which you have an interest.Withdrawal Charge—The “contingent deferred sales charge” assessed against certain withdrawals ofContract Value i

† The Dreyfus Socially Responsible Growth Fund, Inc. (Initial Share Class) † Deutsche Investments VIT Funds (formerly DWS Investments VIT Funds) (Class A Shares)1: † Deutsche Equity 500 Index VIP (formerly DWS Equity 500 Index VIP)4 † Deutsche Variable Series I (formerly DWS Variable