To Protect Policyholders,state Laws Place Limitations on a Life Insurance

question 19

Multiple Choice

To protect policyholders,state laws place limitations on a life insurance company's investments.The assets backing interest-sensitive products,such as variable life insurance and variable annuities,are not subject to these restrictions.Assets backing interest-sensitive products are placed in a special account called the life insurer's

• A)policy reserve account.
• B)policy loan account.
• C)separate account.
• D)policyholders surplus.

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Definitions:

Organic Product

A compound or material derived from living organisms or produced by synthesis to mimic a natural process.

Reaction

A process in which chemical substances convert into new substances through the breaking and forming of chemical bonds.

Regio-

Regio- refers to a prefix in chemistry denoting the specific region or position in a molecule where a reaction or change occurs, often used in the context of regioselective reactions.

Stereochemical

Pertaining to the spatial arrangement of atoms in molecules and the effect of this arrangement on chemical reactions and properties.