Health Insurance Covers a Person's Healthcare Expenses

Health insurance covers a person's healthcare expenses. Applicants for insurance have better information about their own health and lifestyle. Explain how insurers suffer from adverse selection.

A) People with worse health and lifestyle would be more likely to buy the insurance.
B) People with worse health and lifestyle would be less likely to buy the insurance
C) People who are more risk-averse would be more likely to buy the insurance..
D) People who are more risk-averse would be more likely to buy the insurance.
E) None of the above.