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The key phrase in most underwriting guidelines is "nicotine or tobacco products." Some companies make distinctions between different forms of use, offering slightly better rates for non-smoked tobacco or for nicotine replacement therapy used as part of a quit attempt

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However, because cigarette taxes are not calculated as a percentage of sales but rather a flat rate, the more the companies can collect in price [because of a merger], the less the government can skim off in taxes, Pauly notes