To protect policyholders, state laws place limitations on a life insur

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.

ANSWER

Answer: C