-
sohrabkalra
- Senior | Next Rank: 100 Posts
- Posts: 90
- Joined: Fri Feb 25, 2011 12:56 am
- Thanked: 1 times
- Followed by:3 members
- GMAT Score:770
Insurance policies guaranteeing the policyholder's income if he or she becomes permanently disabled will surely provide the insurance industry with a popular and profitable product. When compared to the potential lost income, the cost to a worker who is at average risk of disabling injury is very little, often no more than a few dollars a month, and is far outweighed by the benefits paid to the disabled.
Which of the following, if true, most seriously undermines the prediction made above?
A)The large majority of workers significantly underestimate the likelihood of suffering a disabling injury.
B)Workers at greater than average risk are likely to be charged higher premiums on disability insurance.
C)Disability insurance that guarantees the policyholder's income will be more expensive for those with large incomes.
D)Some employers already provide disability insurance that guarantees their employees' incomes.
E)Insurance companies will lose money on any disability insurance policy they sell to a worker who later becomes permanently disabled.
OA: A
Have a doubt , will raise it after a few replies!
Which of the following, if true, most seriously undermines the prediction made above?
A)The large majority of workers significantly underestimate the likelihood of suffering a disabling injury.
B)Workers at greater than average risk are likely to be charged higher premiums on disability insurance.
C)Disability insurance that guarantees the policyholder's income will be more expensive for those with large incomes.
D)Some employers already provide disability insurance that guarantees their employees' incomes.
E)Insurance companies will lose money on any disability insurance policy they sell to a worker who later becomes permanently disabled.
OA: A
Have a doubt , will raise it after a few replies!
