Property and Casualty Insurance Companies Tend to Invest Heavily in Municipal

Property and casualty insurance companies tend to invest heavily in municipal bonds because

A) the bonds have higher yields than corporate bonds.
B) property and casualty insurance companies are required by regulators to hold at least 20 percent of their assets in the form of municipal bonds.
C) the bonds are tax-exempt.
D) they hold large state and local government pension funds, thus requiring them to hold an equal amount of municipal bonds.