What is Segregated Fund?

Legal Definition
A Segregated Fund or Seg Fund is a type of investment fund administered by Canadian insurance companies in the form of individual, variable life insurance contracts offering certain guarantees to the policyholder such as reimbursement of capital upon death. As required by law, these funds are fully segregated from the company's general investment funds, hence the eponym. A segregated fund is synonymous with the U.S. insurance industry "separate account" and related insurance and annuity products.
-- Wikipedia