Question

Which of the following statements is TRUE of an insurance company fixed account, but not true of a separate account?

a. It is often available as a subaccount in a variable product.
b. The insurance company guarantees its returns.
c. It is registered under the Investment Company Act of 1940.
d. Its manager must be a registered investment adviser.

Answer 1

An insurance company fixed account is often available as a subaccount in a variable product, such as a variable annuity or variable life insurance policy.

Step-by-step explanation:

The statement that is true of an insurance company fixed account but not true of a separate account is that it is often available as a subaccount in a variable product.

An insurance company fixed account is typically offered as an investment option within a variable annuity or variable life insurance policy. It offers a guaranteed rate of return set by the insurance company, which provides stability and security to the investors. On the other hand, a separate account does not have this specific feature.