L&HIllinoishard
Under 215 ILCS 5/245.21 and IDOI variable-line rules, which statement about the separate account supporting an Illinois variable life policy is most accurate?
Separate-account assets are held apart from the insurer's general account and are generally not chargeable with liabilities arising out of any other business of the insurer
BSeparate-account assets are commingled with the insurer's general account and reachable by general creditors of the insurer
CSeparate-account performance is guaranteed by the Illinois Life and Health Insurance Guaranty Association up to $300,000 of investment loss
DSeparate accounts may only invest in U.S. Treasury securities
Why this is the answer
Section 245.21 of the Illinois Insurance Code establishes that separate-account assets supporting variable life and variable annuity contracts are legally segregated from the insurer's general account. They are not commingled with general-account assets and, by statute, are not subject to claims arising out of the insurer's other lines of business. Investment performance and risk are borne by the policyowner, not the insurer.
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