Pro-Tect Insurance Company has recently been paying out more on car-theft claims than it expected. Cars with special antitheft d

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问题 Pro-Tect Insurance Company has recently been paying out more on car-theft claims than it expected. Cars with special antitheft devices or alarm systems are much less likely to be stolen than are other cars. Consequently Pro-Tect, as part of an effort to reduce its annual payouts, will offer a discount to holders of car-theft policies if their cars have antitheft devic es or alarm systems.
Which of the following, if true, provides the strongest indication that the plan is likely to achieve its goal?

选项 A、The decrease in the risk of car theft conferred by having a car alarm is greatest when only a few cars have such alarms.
B、The number of policyholders who have filed a claim in the past year is higher for Pro-Tect than for other insurance companies.
C、In one or two years, the discount that Pro-Tect is offering will amount to more than the cost of buying certain highly effective antitheft devices.
D、Currently, Pro-Tect cannot legally raise the premiums it charges for a given amount of insurance against car theft.
E、The amount Pro-Tect has been paying out on car-theft claims has been greater for some models of car than for others.

答案C

解析 Evaluation of a Plan
Situation An insurance company is paying more money on car-theft claims than anticipated. To reduce these payments, the company is planning to offer discounts to customers whose cars have antitheft devices or alarm systems, because such cars are less likely to be stolen.
Reasoning What piece of information would indicate that the plan is likely to succeed? Pro-Tect wishes to reduce its annual payouts, and one way for that to happen is for fewer cars insured by Pro-Tect to be stolen. To help accomplish this, Pro-Tect is offering discounts to policyholders whose cars are so equipped, because cars equipped with antitheft devices or alarm systems are less likely to be storen than are cars without such devices. What would interfere with the success of Pro-Tect’s plan? Car owners would probably resist investing in antitheft devices or alarm systems if the cost of such systems is higher than the discount they will receive. So if Pro-Tect sets the discount at a level that makes installing antitheft devices seem like a bargain to car owners, the plan will most likely succeed.
A Pro-Tect’s plan is designed to increase the number of cars equipped with car alarms. If having more car equipped with car alarms reduces those alarms’ effectivity in preventing thefts, then Pro-Tect’s plan is unlikely to achieve its goal.
B Pro-Tect’s claims in relation to those of other insurance companies are not relevant to whether Pro-Tect’s plan to reduce its own car-theft claims will achieve its goal.
C Correct. This statement suggests that Pro-Tect’s plan will provide an effective incentive for car owners to install antitheft devices; this statement therefore properly identifies information that indicates the plan is likely to achieve its goal.
D Because Pro-Tect’s plan does not involve raising the premiums it charges, restrictions on its ability to do so are irrelevant to whether that plan will achieve its goal.
E Pro-Tect’s plan does not distinguish among different models of car, so this statement indicates nothing about whether the proposed plan will succeed.
The correct answer is C.
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本试题收录于: GMAT VERBAL题库GMAT分类
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