Question 1006 of 287 · Texas Life, Accident and Health Agent Exam
Who bears the investment risk in a variable life insurance policy?
Exactly one answer is correct.
You got of questions right. Here on the question pages nobody remembers which ones you got wrong. The trainer saves your progress and asks the mistakes again until they stick.
Or free: the 10 questions most people get wrong
Show solution
Correct answer to question 1006
- D: The policyowner
Explanation
In variable life, cash value is held in separate accounts invested in securities, so values and sometimes the death benefit vary with performance. The owner bears the investment risk, which is why a securities registration is also needed to sell it.
More questions: Life: Types of Policies
- 1007To sell variable life insurance or variable annuities in Texas, an agent needs
- 1008Variable universal life combines
- 1009How does indexed universal life credit interest to the cash value?
- 1010An interest-sensitive whole life policy typically
- 1011Term life insurance is best described as
- 1012Which type of term insurance has a death benefit that declines over the policy period?