Why would a market for grade insurance not work?

a. Most students don't need it since they like to study hard.

b. Only three companies in the world provide grade insurance.

c. The premium for such insurance might be too high for low income students to afford.

d. Students will have an incentive to get low grades, or not exert as much effort, and collect payments from the insurance company. The grade insurance company may go bankrupt by paying out more disbursements than the premiums they collect.