Q769
In traditional cash value policies, the policy reserve form part of a _________
A.
Special investment account
B.
General investment account
AnswerC.
Both A & B
D.
None of the above
Answer: Option B
Solution
Answer: Option B
Solution:
In traditional cash value policies, the policy reserve form part of a General investment account. When an insurance company underwrites a new policy, it is paid a premium by the policyholder. These premiums are deposited into the insurer's general account.