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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