All of the following are disadvantages of captive insurance companies EXCEPT:

A. Captives generally result in higher premiums for the line(s) of coverage placed in the captive.

B. Establishing a captive generally requires a substantial initial outlay of capital.

C. Participation in a captive may require more time of administrative, senior management and risk management personnel than does traditional insurance.

D. The captive owner must be prepared that losses may be greater than expected.