Life insurance premiums are typically lower for non-smokers than for smokers. Life insurance companies require a clear urine test to confirm a person's status. If you smoke cigarettes only occasionally (for example, at parties once a month), you are likely to be treated as a smoker. If you are a very occasional pipe or cigar smoker, on the other hand, you could be treated as a non-smoker. If a person quits smoking long enough to qualify for the non-smoker rates but intends to begin smoking once the policy is in force, is this adverse selection or moral hazard? If the insurance company does not follow-up to confirm the subsequent smoking status of its policyholders, is this adverse selection or moral hazard?