Adverse Selection Is Said to Exist When an Individual

Adverse selection is said to exist when an individual

A) selects a product which has adverse externalities.
B) is not able to take advantage of another individual.
C) purchases a lot of insurance because he/she knows that he/she is at high risk.
D) has the incentive to,and is able to,shift costs to another individual.
E) is averse to certain products.