California Insurance License Exam Practice Test Practice Question
A product provides annuity benefits that may vary according to the investment experience of any separate account or accounts maintained by the insurer. This contract is known as
Correct Answer: C
Rationale: A product that offers annuity benefits varying with the performance of separate accounts is identified as a variable annuity. This allows policyholders to potentially increase their returns based on investment choices.
Option A, variable life, refers to a life insurance policy with cash value that can fluctuate based on investments, but it does not focus on annuity benefits.
Option B, adjustable life, allows policyholders to adjust premiums and death benefits but lacks the investment variability characteristic of variable annuities.
Option D, flexible premium variable life, combines features of life insurance with investment options but is not specifically an annuity product.
Unlock All Questions
Subscribe to Premium for full access to all practice questions, detailed rationales, and performance tracking.
Subscribe Now