The correct answer is: C. Both A & B
A variable insurance policy is a type of life insurance policy that allows the policyholder to choose how their premiums are invested. The policy reserve is the amount of money that is set aside to pay for the policy’s benefits, and it is invested in a variety of assets, such as stocks, bonds, and mutual funds. The policyholder can choose the investment options that they want their policy reserve to be invested in, and they can also change their investment choices at any time.
The policy reserve is held in a special investment account, which is separate from the insurance company’s general investment account. This means that the policy reserve is not subject to the same risks as the insurance company’s general investment account. The policy reserve is also protected by state insurance laws, which means that it is not at risk of being lost in the event of the insurance company’s bankruptcy.
The policy reserve is an important part of a variable insurance policy. It is what ensures that the policy will be able to pay out the benefits that the policyholder has chosen. The policy reserve is also what allows the policyholder to have a say in how their money is invested.