Which of the following is NOT an example of a process designed to combat moral hazard problems?

A. Banks include restrictive covenants in load agreements that prevent the borrower from using the loan proceeds for purposes other than those agreed to in the loan

B. The rate the employer pays per employee for coverage in the unemployment compensation system increases if the employer experiences above average layoffs.

C. Insurance companies require applicants to provide medical history information as part of the application process

D. Employers regularly monitor employee performance