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