Which of the Following Is Not Related to Adverse Selection

Multiple Choice

Which of the following is not related to adverse selection in insurance markets?

A) An insurance company has no way of distinguishing among applicants
B) An insurance company must charge a higher price to applicants who are good health risks
C) The price of insurance is attractive to poor health risks, but not to good ones
D) The insured group becomes less healthy on average
E) Because of the relative unhealthiness of the insured group, rates must rise