All of the Following Are True Regarding Moral Hazard Except

All of the following are true regarding moral hazard except which one?

A) Situations of moral hazard tend to be rare occurrences.
B) It arises when parties to a transaction have conflicting objectives and the supervising parties cannot monitor the other parties.
C) It is a situation in which individuals make hidden actions that benefit them at the expense of the other parties.
D) It typically occurs after participants have already entered into a contract or agreement.