General Account is an insurance company’s account that holds the money and investments for fixed contracts and traditional life insurance policies.
Applying "General Account" to Securities Exams:
When an investor purchases a fixed insurance product the insurance company promises to pay the customer a specific amount, in the case of an insurance policy; or rate of return, in the case of a fixed or combination annuity. The general account is where the insurance company invests the money that has been paid in by the customer, so that they are able to meet the payout obligations they promised. Monies in a general account are typically invested in conservative, low risk investments.