Which fee corresponds to the investment management fee deducted from the separate accounts?

• A. Mortality risk (the cost of insurance)
• B. Expense risk fee
• C. Investment management fee
• D. Administrative fee

Answer: (C)

The investment management fee is the charge for actively managing the assets inside the separate account. It covers portfolio construction, research, trading, and ongoing oversight of the investments, and is typically a percentage of assets under management deducted from the account value.

The other charges serve different purposes: the mortality risk is the cost of insurance (guarantees tied to death benefits), the expense risk fee covers insurer-related risks and expenses related to guarantees, and the administrative fee covers recordkeeping and other administrative services.