Which of the following is an example of adverse selection? Failing to read an insurance contract before paying the premium States requiring all drivers to have car insurance O Choosing a health insurance policy that does not cover all services needed by the insured Offering hurricane insurance nationwide and only having those that live on the coast buy it Question 5 1 pts How is insurance different from hedging? Insurance only protects individuals while hedging is used primarily by businesses. Insurance transfer pure risk while hedging addresses speculative risk. O Hedging involves a significant risk of moral hazard and adverse selection whereas insurance does not. O Hedging is best used to address severe risks while insurance is best suited for smaller risks due to the lower premiums. Question 6 1 pts Unemployment is a great example of an ideally insurable risk. True False