Question

Which of the following statements is/are TRUE regarding variable life insurance policies?

I. Insurance regulators have the right to disapprove contracts between the separate account and its investment adviser.
II. Changes in the investment policy of the separate account must be approved by shareholders.
III. The managers under specific circumstances may reject motions passed by shareholders.

a. I only
b. II only
c. I and II only
d. I, II, and III

Answer 1

The true statements about variable life insurance policies are that insurance regulators can disapprove contracts between the account and its adviser, changes in investment policy must be approved by shareholders, and managers can reject shareholder motions under certain circumstances.

Step-by-step explanation:

Regarding variable life insurance policies, the accurate statements among the given options are:

• Insurance regulators have the right to disapprove contracts between the separate account and its investment adviser.
• Changes in the investment policy of the separate account must be approved by shareholders.
• The managers under specific circumstances may reject motions passed by shareholders if those motions are not in the best interests of the shareholders or if they contradict the investment policy or rules set forth by the firm.

The correct answer to the question would be 'd. I, II, and III'.