Insurance companies are able to predict the average number of occurrences of insurable events in a large population of policyholders because : A. they speculate B. they hold money market instruments as assets without fearing overly large numbers of defaults. C. they charge higher premiums than necessary, knowing that large numbers of individuals will pay them. D. they hold capital market instruments as assets without fearing overly large numbers of defaults. E. of the law of large numbers