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
5-Day Free Trial
5-day free, full-access trial TTP
Available with Beat the GMAT members only code
MORE DETAILS
car insurance company
This topic has expert replies
-
nafishasan
- Junior | Next Rank: 30 Posts
- Posts: 27
- Joined: Thu Mar 17, 2011 11:02 pm
-
sam2304
- Legendary Member
- Posts: 1239
- Joined: Tue Apr 26, 2011 6:25 am
- Thanked: 233 times
- Followed by:26 members
- GMAT Score:680
IMO A.
Same explanation as provided for OG 12 #55.
Same explanation as provided for OG 12 #55.
Getting defeated is just a temporary notion, giving it up is what makes it permanent.
https://gmatandbeyond.blogspot.in/
https://gmatandbeyond.blogspot.in/
-
ArunangsuSahu
- Master | Next Rank: 500 Posts
- Posts: 382
- Joined: Thu Mar 31, 2011 5:47 pm
- Thanked: 15 times
