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During the past year, Pro-Tect Insurance Companys total payouts on 03 Jun 2026, 00:58
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B
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35% (medium)

Question Stats:

73% (02:10) correct 27% (02:33) wrong based on 243 sessions

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During the past year, Pro-Tect Insurance Company’s total payouts on car-theft claims were larger than the company can afford to sustain. Pro-Tect cannot reduce the number of car-theft policies it carries, so it cannot protect itself against continued large payouts that way. Therefore, Pro-Tect has decided to offer a discount to holders of car-theft policies whose cars have antitheft devices. Many policyholders will respond to the discount by installing antitheft devices, since the amount of the discount will within two years typically more than cover the cost of installation. Thus, because cars with antitheft devices are rarely stolen, Pro-Tect’s plan is likely to reduce its annual payouts.

In the argument above, the two portions in boldface play which of the following roles?

A. The first provides evidence in support of the main conclusion of the argument; the second is that conclusion.

B. The first presents a problem a response to which the argument assesses; the second is that response.

C. The first poses a problem for which the argument suggests a possible solution; the second is a conclusion that the argument draws in the course of supporting that possible solution.

D. The first raises a consideration that the argument takes as weighing against the effectiveness of a certain policy; the second is that policy.

E. The first presents a circumstance whose explanation is the issue the argument addresses; the second is an explanation that the argument rejects.
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During the past year, Pro-Tect Insurance Companys total payouts on 03 Jun 2026, 04:25
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Key to getting this question correct is noting the subtle difference between what (C) describes and what the second boldfaced portion does.

(C) says that the second boldfaced portion states "a conclusion that the argument draws." However, the truth is that the second boldfaced portion doesn't present a conclusion of the argument. Rather, it presents a plan that the "Pro-Tech" has decided to implement.
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During the past year, Pro-Tect Insurance Companys total payouts on 03 Jun 2026, 16:28
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During the past year, Pro-Tect Insurance Company’s total payouts on car-theft claims were larger than the company can afford to sustain. Pro-Tect cannot reduce the number of car-theft policies it carries, so it cannot protect itself against continued large payouts that way. Therefore, Pro-Tect has decided to offer a discount to holders of car-theft policies whose cars have antitheft devices. Many policyholders will respond to the discount by installing antitheft devices, since the amount of the discount will within two years typically more than cover the cost of installation. Thus, because cars with antitheft devices are rarely stolen, Pro-Tect’s plan is likely to reduce its annual payouts.

In the argument above, the two portions in boldface play which of the following roles?

A. The first provides evidence in support of the main conclusion of the argument; the second is that conclusion.

B. The first presents a problem a response to which the argument assesses; the second is that response.

C. The first poses a problem for which the argument suggests a possible solution; the second is a conclusion that the argument draws in the course of supporting that possible solution.

D. The first raises a consideration that the argument takes as weighing against the effectiveness of a certain policy; the second is that policy.

E. The first presents a circumstance whose explanation is the issue the argument addresses; the second is an explanation that the argument rejects.
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During the past year, Pro-Tect Insurance Companys total payouts on 04 Jun 2026, 06:30
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During the past year, Pro-Tect Insurance Company’s total payouts on car-theft claims were larger than the company can afford to sustain. Pro-Tect cannot reduce the number of car-theft policies it carries, so it cannot protect itself against continued large payouts that way. Therefore, Pro-Tect has decided to offer a discount to holders of car-theft policies whose cars have antitheft devices. Many policyholders will respond to the discount by installing antitheft devices, since the amount of the discount will within two years typically more than cover the cost of installation. Thus, because cars with antitheft devices are rarely stolen, Pro-Tect’s plan is likely to reduce its annual payouts.

In the argument above, the two portions in boldface play which of the following roles?

The first boldface presents the problem: Pro-Tect’s car-theft payouts are too high. The second boldface presents the company’s response to that problem: offering discounts to policyholders with antitheft devices. The argument then evaluates that response and concludes that it will probably reduce payouts. So the first is the problem, and the second is the response being assessed.

A. The first provides evidence in support of the main conclusion of the argument; the second is that conclusion.

This is incorrect. The second boldface is not the main conclusion. The main conclusion is that Pro-Tect’s plan is likely to reduce its annual payouts.

B. The first presents a problem a response to which the argument assesses; the second is that response.

This is correct. The first boldface states the financial problem, and the second states the policy chosen in response. The rest of the argument explains why that *response* is likely to work.

C. The first poses a problem for which the argument suggests a possible solution; the second is a conclusion that the argument draws in the course of supporting that possible solution.

This is incorrect. The second boldface is not a conclusion drawn in support of the solution; it is the solution itself.

D. The first raises a consideration that the argument takes as weighing against the effectiveness of a certain policy; the second is that policy.

This is incorrect. The first does not weigh against the discount policy. It explains why some policy is needed.

E. The first presents a circumstance whose explanation is the issue the argument addresses; the second is an explanation that the argument rejects.

This is incorrect. The argument is not trying to explain why payouts were high, and it does not reject the second boldface.

Answer: (B)
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