Insurance companies in general must guard against having a disproportionate number of bad risks as policyholders. For their own profitability, they need to see the total payouts for a year as a fairly small percentage of the total premiums. This fundamental problem for insurance companies is known as

a.inflation risk.

b.co-insurance.

c.adverse selection.

d.deductible risk.

e.rate of return risk.

1.I am insurance that provides for living and illnesses generally associated with nearing end-of-life, which frequently have my policyholders being in assisted living or a nursing home. Who am I?

a.term life insurance

b.long-term care insurance

c.Medicare

d.managed care health plan

e.whole life insurance