Check GMAT Club Decision Tracker for the Latest School Decision Releases https://gmatclub.com/AppTrack

 It is currently 24 May 2017, 10:14

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# Pro-Tect Insurance Company has recently been paying out more

Author Message
TAGS:

### Hide Tags

Verbal Forum Moderator
Status: Getting strong now, I'm so strong now!!!
Affiliations: National Institute of Technology, Durgapur
Joined: 04 Jun 2013
Posts: 577
Location: India
GPA: 3.32
WE: Information Technology (Computer Software)
Followers: 101

Kudos [?]: 579 [4] , given: 80

Pro-Tect Insurance Company has recently been paying out more [#permalink]

### Show Tags

09 Sep 2013, 11:06
4
KUDOS
22
This post was
BOOKMARKED
00:00

Difficulty:

35% (medium)

Question Stats:

72% (02:42) correct 28% (02:17) wrong based on 1152 sessions

### HideShow timer Statistics

Official Guide for GMAT Verbal Review, 2nd Edition

Practice Question
Question No.: 29
Page: 126
Difficulty:

Pro-Tect Insurance Company has recently been paying out more on car-theft claims than it expected. Cars with special antitheft devices or alarm systems are much less likely to be stolen than are other cars. Consequently Pro-Tect, as part of an effort to reduce its annual payouts, will offer a discount to holders of car-theft policies if their cars have anti-theft devices or alarm systems.

Which of the following, if true, provides the strongest indication that the plan is likely to achieve its goal?

(A) The decrease in the risk of car theft conferred by having a car alarm is greatest when only a few cars have such alarms.
(B) The number of policyholders who have filed a claim in the past year is higher for Pro-Tect than for other insurance companies.
(C) In one or two years, the discount that Pro-Tect is offering will amount to more than the cost of buying certain highly effective antitheft devices.
(D) Currently, Pro-Tect cannot legally raise the premiums it charges for a given amount of insurance against car theft.
(E) The amount Pro-Tect has been paying out on cartheft claims has been greater for some models of car than for others.
[Reveal] Spoiler: OA

_________________

Regards,

S

Consider +1 KUDOS if you find this post useful

Last edited by Narenn on 16 Oct 2013, 07:58, edited 2 times in total.
Necessary Corrections for Official Guide Verbal Review 2nd Edition Project
If you have any questions
New!
Verbal Forum Moderator
Status: Getting strong now, I'm so strong now!!!
Affiliations: National Institute of Technology, Durgapur
Joined: 04 Jun 2013
Posts: 577
Location: India
GPA: 3.32
WE: Information Technology (Computer Software)
Followers: 101

Kudos [?]: 579 [1] , given: 80

### Show Tags

09 Sep 2013, 11:09
1
KUDOS
Only option that suggests that discount might get customers intersted in installaing an anti-theft decive is C for Charlie
_________________

Regards,

S

Consider +1 KUDOS if you find this post useful

Manager
Joined: 07 Mar 2012
Posts: 51
Location: India
Concentration: General Management, Nonprofit
GMAT Date: 09-13-2013
GPA: 4
WE: Engineering (Energy and Utilities)
Followers: 6

Kudos [?]: 302 [1] , given: 59

Re: Pro-Tect Insurance Company has recently been paying out more [#permalink]

### Show Tags

18 Nov 2013, 08:09
1
KUDOS
Pro-Tect Insurance Company has recently been paying out more on car-theft claims than it expected. Cars with special antitheft devices or alarm systems are much less likely to be stolen than are other cars. Consequently Pro-Tect, as part of an effort to reduce its annual payouts, will offer a discount to holders of car-theft policies if their cars have anti-theft devices or alarm systems.

Which of the following, if true, provides the strongest indication that the plan is likely to achieve its goal?

(A) The decrease in the risk of car theft conferred by having a car alarm is greatest when only a few cars have such alarms.
(B) The number of policyholders who have filed a claim in the past year is higher for Pro-Tect than for other insurance companies.
(C) In one or two years, the discount that Pro-Tect is offering will amount to more than the cost of buying certain highly effective anti theft devices.
(D) Currently, Pro-Tect cannot legally raise the premiums it charges for a given amount of insurance against car theft.
(E) The amount Pro-Tect has been paying out on cartheft claims has been greater for some models of car than for others.

Option C : discount > cost of anti theft device

_________________

Remember that potential unused turns into pain. So dedicate yourself to expressing your best.

GMAT Club Legend
Joined: 01 Oct 2013
Posts: 10370
Followers: 997

Kudos [?]: 224 [1] , given: 0

Re: Pro-Tect Insurance Company has recently been paying out more [#permalink]

### Show Tags

21 Dec 2014, 13:55
1
KUDOS
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
Intern
Joined: 17 Oct 2013
Posts: 14
Followers: 0

Kudos [?]: 2 [0], given: 1

Re: Pro-Tect Insurance Company has recently been paying out more [#permalink]

### Show Tags

19 Jan 2015, 14:53
Although I got my answer correct, but I pre-assumed something different than given in the answer choice. Please check whether this my pre-assumption is also correct:

In the premise, there is an assumption - Those cars having antitheft devices or alarm systems must not be already insured, that's why Pro-Tect Insurance Company wants to insure them in their latest approach. So, by saying that those cars were not insured before and is likely to get insured next, then it can be strengthened that the plan is likely to achieve its goal.

Thanks and Regards
Tushar
Intern
Joined: 30 Dec 2013
Posts: 17
Followers: 0

Kudos [?]: 1 [0], given: 57

Re: Pro-Tect Insurance Company has recently been paying out more [#permalink]

### Show Tags

22 Feb 2015, 04:23
Hi Tushar. I think your assumption is not right because we are talking about car which are insured. There is no information about cars which have antitheft devices or alarm systems are insured or are not insured.
My assumption is : Antitheft devices are affordable.
It supports the conclusion.

Option C is in line with the assumption. If I am not wrong then, Option C can also be the assumption.
I want verbal experts to judge my analysis. I am sure egmat experts and veritas experts can give great feedback for this question.
Thanks.

Respectfully,
Verve42
Verbal Forum Moderator
Joined: 02 Aug 2009
Posts: 4512
Followers: 394

Kudos [?]: 4188 [0], given: 109

Pro-Tect Insurance Company has recently been paying out more [#permalink]

### Show Tags

22 Feb 2015, 05:37
tusharkhatri18 wrote:
Although I got my answer correct, but I pre-assumed something different than given in the answer choice. Please check whether this my pre-assumption is also correct:

In the premise, there is an assumption - Those cars having antitheft devices or alarm systems must not be already insured, that's why Pro-Tect Insurance Company wants to insure them in their latest approach. So, by saying that those cars were not insured before and is likely to get insured next, then it can be strengthened that the plan is likely to achieve its goal.

Thanks and Regards
Tushar

hi Tushar,

the plan as per the argument is " to reduce payouts arising due to theft of the car.., whereas as per you it is to target the uninsured cars..... if the plan were as you were thinking, your assumption could be close...
it is therefore important that the argument be read properly to correctly find inferences, assumption etc..

and what C does as an assumption is "since the cost to install anti theft devices will be cheaper than the discount being paid by the company, it is likely people will install these devices to get the discount and so the plan will work..
_________________

Absolute modulus :http://gmatclub.com/forum/absolute-modulus-a-better-understanding-210849.html#p1622372
Combination of similar and dissimilar things : http://gmatclub.com/forum/topic215915.html

Intern
Joined: 16 Jul 2011
Posts: 27
Concentration: Marketing, Real Estate
GMAT 1: 550 Q37 V28
GMAT 2: 610 Q43 V31
Followers: 0

Kudos [?]: 1 [0], given: 86

Re: Pro-Tect Insurance Company has recently been paying out more [#permalink]

### Show Tags

04 Jul 2015, 08:42
tusharkhatri18 wrote:
Although I got my answer correct, but I pre-assumed something different than given in the answer choice. Please check whether this my pre-assumption is also correct:

In the premise, there is an assumption - Those cars having antitheft devices or alarm systems must not be already insured, that's why Pro-Tect Insurance Company wants to insure them in their latest approach. So, by saying that those cars were not insured before and is likely to get insured next, then it can be strengthened that the plan is likely to achieve its goal.

Thanks and Regards
Tushar

Hi Tushar,

A part is the stimulus makes it very clear that the company is offering discounts for existing policy holders. It is "Consequently Pro-Tect ...........................will offer a discount to holders of car-theft policies.................." No where does it talk about prospective customers.
_________________

"The fool didn't know it was impossible, so he did it."

Intern
Joined: 15 Nov 2015
Posts: 47
Followers: 0

Kudos [?]: 6 [0], given: 1

Re: Pro-Tect Insurance Company has recently been paying out more [#permalink]

### Show Tags

14 Apr 2016, 09:11
Conclusion: Reduce Annual pay outs.
Premise: Offer discounts if cars have ant-theft devices.

Assumption: People will install anti-theft devices to be eligible for the discounts.

Something which validates this assumption will strengthen the argument.
Math Forum Moderator
Status: Greatness begins beyond your comfort zone
Joined: 08 Dec 2013
Posts: 1161
Location: India
Concentration: General Management, Strategy
GPA: 3.2
WE: Information Technology (Consulting)
Followers: 51

Kudos [?]: 550 [0], given: 60

Re: Pro-Tect Insurance Company has recently been paying out more [#permalink]

### Show Tags

22 May 2016, 04:34
Pro-Tect Insurance Company has recently been paying out more on car-theft claims than it expected. Cars with special antitheft devices or alarm systems are much less likely to be stolen than are other cars. Consequently Pro-Tect, as part of an effort to reduce its annual payouts, will offer a discount to holders of car-theft policies if their cars have anti-theft devices or alarm systems.

Which of the following, if true, provides the strongest indication that the plan is likely to achieve its goal?

Conclusion - In order to reduce its annual payouts , Pro-Tect will offer a discount to holders of car-theft policies if their cars have anti-theft devices or alarm systems.
Will the discount offered by Pro-Tect suffice for people to have anti theft devices ?

(A) The decrease in the risk of car theft conferred by having a car alarm is greatest when only a few cars have such alarms.
Irrelevant
(B) The number of policyholders who have filed a claim in the past year is higher for Pro-Tect than for other insurance companies.
Out of Scope
(C) In one or two years, the discount that Pro-Tect is offering will amount to more than the cost of buying certain highly effective antitheft devices.
(D) Currently, Pro-Tect cannot legally raise the premiums it charges for a given amount of insurance against car theft.
Out of Scope
(E) The amount Pro-Tect has been paying out on cartheft claims has been greater for some models of car than for others.
Out of Scope
_________________

When everything seems to be going against you, remember that the airplane takes off against the wind, not with it. - Henry Ford
The Moment You Think About Giving Up, Think Of The Reason Why You Held On So Long
+1 Kudos if you find this post helpful

Manager
Joined: 03 Jan 2017
Posts: 204
Followers: 0

Kudos [?]: 2 [0], given: 4

Re: Pro-Tect Insurance Company has recently been paying out more [#permalink]

### Show Tags

14 Mar 2017, 14:03
premise: cars with antitheft system are less likely to be stolen than others
we need to find answer saying that the company will reduce its payouts<=less incidents<=premise that less cars with antitheft system are stolen
Re: Pro-Tect Insurance Company has recently been paying out more   [#permalink] 14 Mar 2017, 14:03
Similar topics Replies Last post
Similar
Topics:
During the past year, Pro-Tect Insurance Company’s total 0 29 Mar 2017, 07:38
23 During the past year, Pro-Tect Insurance Company's total 16 15 Jan 2016, 02:53
During the past year, Pro-Tect Insurance Company s total 0 29 Aug 2016, 04:05
During the past year, Pro-Tect Insurance Company's total 0 15 Jan 2016, 02:53
During the past year, Pro-Tect Insurance Company s total 0 19 Oct 2016, 23:46
Display posts from previous: Sort by