Pennsylvania Life and Health Insurance Exam Practice Question
The amount of insurance provided by a variable life insurance policy depends upon the investment experience of the insurer’s:
Correct Answer: C
Rationale: Variable life insurance policies offer a death benefit that fluctuates based on the performance of the underlying investments. The investment experience of the insurer's separate accounts directly influences the policy's cash value and death benefit.
Option A, designated account, is misleading as it does not specifically refer to the investment structure used in variable policies. Option B, general account, pertains to fixed-income investments and does not affect variable policies. Option D, combined accounts, is not a recognized term in this context, as variable life insurance distinctly utilizes separate accounts for investment performance.
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