In an Ad for Insurance, the Text Reads "Life's an Adventure

In an ad for insurance, the text reads "Life's an adventure, and there are plenty of perils awaiting your jewelry: a lost or broken stone, theft, accidental loss, damage, mysterious disappearance Have you thought about insurance?" How does the inclusion of accidental loss and mysterious disappearance create adverse selection?

A) Those who seek this jewelry insurance know that tend to lose their jewelry often.
B) Individuals who own jewelry know more about their risk than insurance company.
C) Once insured, some individuals wear their jewelry swimming, exercising, etc. where there is an increased risk of loss.
D) Individuals who purchase insurance are risk averse.