With regards to self-insurance which of the following is/are true?

I. A concentration of risk exposures is a fortuitous loss.

II. The law of large numbers will not operate.

III. The possibility of higher income taxes exists.

IV. The self-insured must replace the services provided by an insurer.

A. I, IV.

B. I, II, IV.

C. II, III, IV.

D. Ill, IV.