Answer: Variable life insurance exposes the policyholder to investment risk

**Correct answer: A** - **Variable life insurance** has an investment component, so the **policyholder** bears the investment risk. - **Whole life insurance** primarily exposes the insurer to **mortality risk** (not longevity risk). - **Term life insurance** exposes the insurer to the risk that the insured dies during the term; it is not an inflation-risk product. - **Property-casualty insurance** is not exposed to mortality risk; it is exposed to risks such as underwriting risk, catastrophe risk, and claim severity/frequency risk. Therefore, only statement **A** is true.

Author: Manit Arora