Regarding the characteristics of insurance, which of the following is/are fundamental?
1. Probability (possibility and predictability of a loss).
2. Law of large numbers.
3. Transfer of risk from individual to group.
4. Insurance is a form of speculation.
a. (1) and (2) only
b. (1), (2), and (4) only.
c. (1), (2) and (3) only.
d. (4) only
e. (1), (2), (3), and (4)