Which situation does the following graph demonstrate? FIGURE 25-3 Anticipated Mortality Distribution, Taking Smoking into Consideration Nonsmoker Smoker 100 Percent of Average Adverse selection is occurring. Underwriting information is important for companies seeking competitive advantage. Mortality patterns do not affect insurance rates significantly for this book of business. Actuarial fair rates exists are not possible in this book of business. Which is the following is TRUE regarding retirement pension plans? Defined contribution plans put higher burden on the individual. Defined contribution plans are mostly found in the public sector. Defined benefit plans are the most common type of pension plans today. Onerous legislation and challenging market conditions have contributed to move away from defined contribution plans by private sector companies