Which of the Following Is an Example of Adverse Selection

Multiple Choice

Which of the following is an example of adverse selection?

A) The odds of a fire rise after a building is insured because the person with fire insurance is likely to pay less attention to fire hazards.
B) Someone who did not install fire alarms and a sprinkler system in a building he owns buys insurance for the building.
C) Someone with automobile insurance drives more recklessly than someone without insurance.
D) People prefer to buy new cars rather than used cars.