It doesn't "nullify" it.
However, by having rule 3 in place, rule 4 is unnecessary.
However, to ensure that things are kept as secure as possible, I would try to be as granular as possible and not use a carte blanche rule like rule 3.
If things aren't working as you anticipated, there could be other rules interfering with the rules you listed. That said, is there something that isn't working properly?