According to John Nyman, the Reduction in Utility Due to the Payment

According to John Nyman, the reduction in utility due to the payment of an insurance premium when healthy is less than the increase in utility from an equal income transfer when ill. Which of the following best explains why this is true?

A) As incomes increase, people gain greater utility from additional income.
B) When sick, people no longer behave rationally.
C) As incomes decrease, people gain greater utility from additional income.
D) When healthy, people are able to get more enjoyment from their income.
E) John Nyman is incorrect.