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: C
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A company produces 200 microwave ovens per month, each of which includes one electrical circuit
The company currently manufactures the circuits in-house but is considering outsourcing the circuits at a contract cost of $30 each. Currently, the cost of producing circuits in-house includes variable costs of $24 per circuit and fixed costs of $12,000 per month. Assume the company could cut fixed costs in half by outsourcing and that there is no alternative use for the facilities presently being used to make circuits. If the company outsources, operating income will ________. A) increase by $4,800 B) decrease by $4,800 C) decrease by $1,200 D) stay the same
In moving from the measurement model to the structural model:
A) The error terms are correlated with each other. B) The emphasis shifts from the relationships between latent constructs and measured variables to the nature and magnitude of the relationships between constructs. C) The exogenous constructs each become endogenous. D) The endogenous constructs become exogenous. E) None of the above