With Respect to the Insurance Market, What Is Adverse Selection

With respect to the insurance market, what is adverse selection?

A) Adverse selection refers to the actions people take before they purchase an insurance policy.
B) Adverse selection refers to the actions people take, after they purchase an insurance policy, that make the insurance company worse off.
C) Adverse selection refers to people who purchase one type of insurance policy when they would have been better off purchasing a different policy.
D) Adverse selection refers to the situation in which a person purchasing an insurance policy takes advantage of knowing more about his health than the insurance company knows.