1. Which of the following is an example of adverse selection?

a. a 23 year old with a poor driving record selects an auto policy with high liability limits

b. a 40 year old obese woman, heavy smoker, daily drinker, with type II diabetes takes a job at an employer with mostly healthy employees to get the health insurance with low premiums

c. a life insurance company refuses to write insurance without a medical history

d. a construction company pits two workmans compensation insurers against each other to get the best deal from one of them

4. Insurance companies are licensed and regulated by which of the following?

a. Federal Insurance Commission (FIC)

b. state insurance commissions

c. Securities and Exchange Commission (SEC)

d. Federal Deposit Insurance Corporation (FDIC)