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A car insurance company is considering issuing a new policy

This topic has 1 member reply

A car insurance company is considering issuing a new policy

Post Fri Sep 22, 2017 5:57 am
Elapsed Time: 00:00
  • Lap #[LAPCOUNT] ([LAPTIME])
    A car insurance company is considering issuing a new policy to cover damages caused by elderly drivers. The company needs to keep premiums low to attract customers, but this might cause the company to lose money as it may mean that the income generated by the premiums will not be sufficient to cover the damages caused by older drivers.

Which of the following strategies will most likely lower the company’s worries?

    A. Insuring drivers that are at a younger age and are unlikely to submit claims for several years
    B. Insuring only people with a solid driving background and no previous accidents
    C. Insuring drivers with sufficient income to cover the damages
    D. Insuring only drivers rejected by other companies’ policies
    E. Including more categories of damages in the policy than in most older-driver policies

    Any approach to determine the best answer?

    Need free GMAT or MBA advice from an expert? Register for Beat The GMAT now and post your question in these forums!
    Post Sun Oct 08, 2017 11:05 am
    I think B is the most logical option. Experts, could you please help us here.

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