Part B. Select the option that does NOT accurately reflect a burden of risk on society, especially in terms of the issues of moral hazard and adverse selection faced by insurers:

A. Moral hazard encourages policyholders to engage in riskier behavior, knowing they are insured.

Due to adverse selection, insurers often face difficulties in accurately pricing premiums, increasing the cost and complexity of underwriting.

C. Insurers may exit certain insurance lines and geographic markets if they can't mitigate adverse selection and moral hazard problems in their policie

D. Deductibles have been shown to be ineffective in mitigating moral hazard problems.