In traditional cash value policies, the policy reserve form part of a _________

A. Special investment account

B. General investment account

C. Both A & B

D. None of the above

Answer: Option B

Solution(By Examveda Team)

In traditional cash value policies, the policy reserve form part of a General investment account. When an insurance company underwrites a new policy, it is paid a premium by the policyholder. These premiums are deposited into the insurer's general account.