The Following Conditions Are Suggestive of the Types of Situations

The following conditions are suggestive of the types of situations where self-insurance by a business is possible and feasible, except:

A) the firm should have a sufficient number of objects so situated that the objects are not subject to simultaneous destruction,
B) the firm must be willing to allow an outside company to administer the plan and manage the self-insurance fund in order to ensure objectivity,
C) the firm must have accurate records or have access to satisfactory statistics to enable it to make good estimates of expected losses,
D) the general financial condition of the firm should be satisfactory and the firm's management must be willing and able to deal with large and unusual losses.