Which of the following is TRUE regarding explicit charges in variable life insurance policies?

The answer regarding explicit charges in variable life insurance policies being dependent on the policyholder's age and the amount of coverage is accurate because explicit charges are typically structured to reflect various risk factors associated with issuing a policy. Charges often vary based on the insured's age, as older individuals generally present a higher risk to the insurer. Additionally, the amount of coverage selected by the policyholder can also influence the charges, as higher coverage amounts may involve higher risks and correspondingly higher costs for the insurer in terms of risk assessment, mortality costs, and administrative expenses.

This variability is essential in the context of risk management within insurance, ensuring that the pricing of insurance reflects the actual risks taken on by the company. Explicit charges are meant to be transparent and directly associated with the specific characteristics of the policyholder and their chosen plan, which emphasizes the individualization of insurance pricing based on demographic and coverage factors.