A member of the investment committee is advocating to allocate $1,000,000 from the $6,000,000 premiums to invest in a stock portfolio, buy 5000 6-years zero-coupon bonds, and 3000 10-years zero-coupon bonds. She argues that this strategy guarantees meeting future liabilities generated by the $6m premiums and allows targeting higher returns generated from the stock portfolio. Which of the following is true?

A) The insurance company needs all the collected insurance premiums($6,000,000) invested in bonds to meet its future liabilities

B) The insurance company does not need all the collected insurance premiums($6,000,000) invested in bonds to meet its future liabilities

C) The insurance company are legally not allowed to invest in the stock market

D) The insurance company can accept the recommendation of the investment committee member and still meet its future liability

E) Answers B and D are correct