1. Insurance premiums In the following table, determine whether each scenario relates to the adverse selection problem or the moral hazard problem. Adverse Selection Problem Moral Hazard Problem After Kate purchases life insurance, she goes skydiving with a friend. When applying for life Insurance, Clancy does not tell the insurer that his weekend hobbies include extreme rock climbing in Slim Canyon. In addition to adverse selection and moral hazard, which of the following are considered when developing insurance premiums? Check all that apply. Profit and overhead expenses for the insurance company The number of insurance policies that the insured maintained in previous years The probability of having to pay the insured for potential losses Transfer payments made by the government to the insured Grade It Now Save & Continue Continue without saving