Which account type in life insurance does not guarantee minimum returns and fluctuates based on market conditions?

In life insurance, the account type that does not guarantee minimum returns and fluctuates based on market conditions is the separate account. Separate accounts are typically used for variable life insurance policies, where the cash value and the death benefit can vary depending on the performance of the underlying investments chosen by the policyholder. This means the returns are tied to market performance, which can lead to both potential growth and risk of loss, making it distinct from other account types that may provide more stable, guaranteed returns.

In contrast, general accounts usually involve fixed products where returns are guaranteed and are part of the insurance company’s general funds. Whole accounts, often associated with whole life insurance, provide guaranteed returns based on the policy's cash value. Universal accounts offer flexible premiums and death benefits but generally have a guaranteed interest rate component. The key characteristic of separate accounts is their direct connection to the variable investment performance, differentiating them from those accounts that ensure stability and predictability in returns.