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 B C D policy reserve account. policy loan account. separate account. policyholders surplus.

To protect policyholders, state laws place limitations on a life insurance company's investments. The assets backing interestsensitive 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