According a recent article in the New York Times, the state of New York was "one of the first to require insurers to extend individual or small group coverage to anyone with pre-existing illnesses. . . [and also] one of the few states that require insurers within each region of the state to charge the same rates for the same benefits regardless of whether people are old or young, male or female, smokers or nonsmokers, high risk or low risk."

As a result of these policies (i) "healthier customers soon discovered that the high premiums were not worth it and dropped out of the plans;" and (ii) "premiums for those who remained "skyrocketed," leaving New York with "the highest average annual premiums for individual policies. . . more than double the nationwide average." The effects of the New York's insurance regulations described in the article are an example of

A: adverse selection

B: moral hazard

C: price discrimination

D: risk aversion

E: Both (A) and (B)