knewton vr 5

[pradeepkaushal9518]

Automobile Insurance Company Y is considering issuing a new family-friendly policy to parents with children under the age of 20. This policy would cover any damage to a vehicle incurred by both the parent and his or her children. Premiums for the policy must be low enough to attract customers. Therefore, Company Y is concerned that the income from the policies would not be sufficient to pay for the claims that would be made.

Which of the following strategies would be most likely to minimize Automobile Insurance Company Y's losses on the policies?

A Attracting parents with younger children who are unlikely to cause vehicular damage until they are of driving age.
B Turning down drivers who have received greater than the average number of moving or non-moving violations.
C Including more flexible add-on options than are included in other policies of lower cost.
D Insuring only those drivers who were rejected by other companies for similar policies.
E Insuring only those drivers who are wealthy enough to pay for the damages.

[goyalsau]

Automobile Insurance Company Y is considering issuing a new family-friendly policy to parents with children under the age of 20. This policy would cover any damage to a vehicle incurred by both the parent and his or her children. Premiums for the policy must be low enough to attract customers. Therefore, Company Y is concerned that the income from the policies would not be sufficient to pay for the claims that would be made.

Which of the following strategies would be most likely to minimize Automobile Insurance Company Y's losses on the policies?

A Attracting parents with younger children who are unlikely to cause vehicular damage until they are of driving age.
B Turning down drivers who have received greater than the average number of moving or non-moving violations.
C Including more flexible add-on options than are included in other policies of lower cost.
D Insuring only those drivers who were rejected by other companies for similar policies.
E Insuring only those drivers who are wealthy enough to pay for the damages.

I think it should be in b/w A and E
I would like to go for E
What's the OA.

[pradeepkaushal9518]

OA later after some discussion

why E drivers will pay for damage but insurance company have to pay the heavy claim na boss. so the company will be in loss

[goyalsau]

Automobile Insurance Company Y is considering issuing a new family-friendly policy to parents with children under the age of 20. This policy would cover any damage to a vehicle incurred by both the parent and his or her children. Premiums for the policy must be low enough to attract customers. Therefore, Company Y is concerned that the income from the policies would not be sufficient to pay for the claims that would be made.

Which of the following strategies would be most likely to minimize Automobile Insurance Company Y's losses on the policies?

A Attracting parents with younger children who are unlikely to cause vehicular damage until they are of driving age.
B Turning down drivers who have received greater than the average number of moving or non-moving violations.
C Including more flexible add-on options than are included in other policies of lower cost.
D Insuring only those drivers who were rejected by other companies for similar policies.
E Insuring only those drivers who are wealthy enough to pay for the damages.

optoin A -Attracting parents with younger children who are unlikely to cause vehicular damage until they are of driving age.
It is saying that insuring only those customers who are unlikely to ask for a claim. Means they are not certain. If they ask for a claim then policy will not be beneficial for the company.

options E - Insuring only those drivers who are wealthy enough to pay for the damages.
If company only insure those customers who will not ask for claim on any damages They this policy will definitely be beneficial for Company

Please share you view if you don't agree to me.

[diebeatsthegmat]

Automobile Insurance Company Y is considering issuing a new family-friendly policy to parents with children under the age of 20. This policy would cover any damage to a vehicle incurred by both the parent and his or her children. Premiums for the policy must be low enough to attract customers. Therefore, Company Y is concerned that the income from the policies would not be sufficient to pay for the claims that would be made.

Which of the following strategies would be most likely to minimize Automobile Insurance Company Y's losses on the policies?

A Attracting parents with younger children who are unlikely to cause vehicular damage until they are of driving age.
B Turning down drivers who have received greater than the average number of moving or non-moving violations.
C Including more flexible add-on options than are included in other policies of lower cost.
D Insuring only those drivers who were rejected by other companies for similar policies.
E Insuring only those drivers who are wealthy enough to pay for the damages.

A is my answer, this CR is like the CR question 58 page 484 in OG 11
E is out of scope. why do they want to buy insurance while they can have enough money to pay for damages?

[reply2spg]

I think we decided to disagree with each other

About A let's say childeren are not going to drive then what is the use of going for family policy? Don't you think parent will go for individual policy?

I will go for B. People who are received more violations than others are prone to do more accidents. In that case pay off for those people will be more. If insurance company turn them down, then company will save money on them and use those people premium amount for new family insurance.

Automobile Insurance Company Y is considering issuing a new family-friendly policy to parents with children under the age of 20. This policy would cover any damage to a vehicle incurred by both the parent and his or her children. Premiums for the policy must be low enough to attract customers. Therefore, Company Y is concerned that the income from the policies would not be sufficient to pay for the claims that would be made.

Which of the following strategies would be most likely to minimize Automobile Insurance Company Y's losses on the policies?

A Attracting parents with younger children who are unlikely to cause vehicular damage until they are of driving age.
B Turning down drivers who have received greater than the average number of moving or non-moving violations.
C Including more flexible add-on options than are included in other policies of lower cost.
D Insuring only those drivers who were rejected by other companies for similar policies.
E Insuring only those drivers who are wealthy enough to pay for the damages.

A is my answer, this CR is like the CR question 58 page 484 in OG 11
E is out of scope. why do they want to buy insurance while they can have enough money to pay for damages?

[goyalsau]

Automobile Insurance Company Y is considering issuing a new family-friendly policy to parents with children under the age of 20. This policy would cover any damage to a vehicle incurred by both the parent and his or her children. Premiums for the policy must be low enough to attract customers. Therefore, Company Y is concerned that the income from the policies would not be sufficient to pay for the claims that would be made.

Which of the following strategies would be most likely to minimize Automobile Insurance Company Y's losses on the policies?

A Attracting parents with younger children who are unlikely to cause vehicular damage until they are of driving age.
B Turning down drivers who have received greater than the average number of moving or non-moving violations.
C Including more flexible add-on options than are included in other policies of lower cost.
D Insuring only those drivers who were rejected by other companies for similar policies.
E Insuring only those drivers who are wealthy enough to pay for the damages.

A is my answer, this CR is like the CR question 58 page 484 in OG 11
E is out of scope. why do they want to buy insurance while they can have enough money to pay for damages?

I think it is a very valid Point that why they want to go for customers if they can afford to pay for Damage
But we are not concerned Whether The policy will be successful or Not.
We are More Concerned if There is a single customer and Company Does not want to pay loss on that customer than what should be the policy
Then I think E is the Best.

[reply2spg]

How can you define who is wealthy and who is not? Let's say there are 100 eligible people who can get insurance and only 1 person is wealthy, will you give policy to one person or to remaining 99?

Automobile Insurance Company Y is considering issuing a new family-friendly policy to parents with children under the age of 20. This policy would cover any damage to a vehicle incurred by both the parent and his or her children. Premiums for the policy must be low enough to attract customers. Therefore, Company Y is concerned that the income from the policies would not be sufficient to pay for the claims that would be made.

Which of the following strategies would be most likely to minimize Automobile Insurance Company Y's losses on the policies?

A Attracting parents with younger children who are unlikely to cause vehicular damage until they are of driving age.
B Turning down drivers who have received greater than the average number of moving or non-moving violations.
C Including more flexible add-on options than are included in other policies of lower cost.
D Insuring only those drivers who were rejected by other companies for similar policies.
E Insuring only those drivers who are wealthy enough to pay for the damages.

A is my answer, this CR is like the CR question 58 page 484 in OG 11
E is out of scope. why do they want to buy insurance while they can have enough money to pay for damages?

I think it is a very valid Point that why they want to go for customers if they can afford to pay for Damage
But we are not concerned Whether The policy will be successful or Not.
We are More Concerned if There is a single customer and Company Does not want to pay loss on that customer than what should be the policy
Then I think E is the Best.

[goyalsau]

How can you define who is wealthy and who is not? Let's say there are 100 eligible people who can get insurance and only 1 person is wealthy, will you give policy to one person or to remaining 99?

Automobile Insurance Company Y is considering issuing a new family-friendly policy to parents with children under the age of 20. This policy would cover any damage to a vehicle incurred by both the parent and his or her children. Premiums for the policy must be low enough to attract customers. Therefore, Company Y is concerned that the income from the policies would not be sufficient to pay for the claims that would be made.

Which of the following strategies would be most likely to minimize Automobile Insurance Company Y's losses on the policies?

A Attracting parents with younger children who are unlikely to cause vehicular damage until they are of driving age.
B Turning down drivers who have received greater than the average number of moving or non-moving violations.
C Including more flexible add-on options than are included in other policies of lower cost.
D Insuring only those drivers who were rejected by other companies for similar policies.
E Insuring only those drivers who are wealthy enough to pay for the damages.

A is my answer, this CR is like the CR question 58 page 484 in OG 11
E is out of scope. why do they want to buy insurance while they can have enough money to pay for damages?

I think it is a very valid Point that why they want to go for customers if they can afford to pay for Damage
But we are not concerned Whether The policy will be successful or Not.
We are More Concerned if There is a single customer and Company Does not want to pay loss on that customer than what should be the policy
Then I think E is the Best.

If i want to play safe i will definitely be giving policy to 1 person. in comparison to give policy to 99 person and actually bear loss after that. Company is more interested in earning than any other thing.

[reply2spg]

KUDOS to you

How can you define who is wealthy and who is not? Let's say there are 100 eligible people who can get insurance and only 1 person is wealthy, will you give policy to one person or to remaining 99?

Automobile Insurance Company Y is considering issuing a new family-friendly policy to parents with children under the age of 20. This policy would cover any damage to a vehicle incurred by both the parent and his or her children. Premiums for the policy must be low enough to attract customers. Therefore, Company Y is concerned that the income from the policies would not be sufficient to pay for the claims that would be made.

Which of the following strategies would be most likely to minimize Automobile Insurance Company Y's losses on the policies?

A Attracting parents with younger children who are unlikely to cause vehicular damage until they are of driving age.
B Turning down drivers who have received greater than the average number of moving or non-moving violations.
C Including more flexible add-on options than are included in other policies of lower cost.
D Insuring only those drivers who were rejected by other companies for similar policies.
E Insuring only those drivers who are wealthy enough to pay for the damages.

A is my answer, this CR is like the CR question 58 page 484 in OG 11
E is out of scope. why do they want to buy insurance while they can have enough money to pay for damages?

I think it is a very valid Point that why they want to go for customers if they can afford to pay for Damage
But we are not concerned Whether The policy will be successful or Not.
We are More Concerned if There is a single customer and Company Does not want to pay loss on that customer than what should be the policy
Then I think E is the Best.

If i want to play safe i will definitely be giving policy to 1 person. in comparison to give policy to 99 person and actually bear loss after that. Company is more interested in earning than any other thing.

[singhsa]

IMO E too.

Why don't you give the OA?

[goyalsau]

IMO E too.

Why don't you give the OA?

You are absolutely Right,
Brother its good if you the OA now.