Final answer:
The insurance company must keep variable life premiums and cash value investments in a separate account, most likely invested in safe and liquid investments.
Step-by-step explanation:
The insurance company must keep variable life premiums and cash value investments in a separate account.
Cash-value (whole) life insurance has a death benefit and a cash value component. The cash value serves as an account for the policyholder to use. Insurance companies typically invest the funds received from premiums and unused insurance claims in safe and liquid investments that can be easily accessed in case of a major disaster.