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The excessive paperwork used to process claims at Brakeland Insurance

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The excessive paperwork used to process claims at Brakeland Insurance [#permalink]

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New post 31 Dec 2017, 07:48
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Question Stats:

61% (01:46) correct 39% (02:25) wrong based on 84 sessions

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The excessive paperwork used to process claims at Brakeland Insurance Company, not the increase in accident claims involving privately owned cars, is responsible for the declining profits at Brakeland since the appointment of its new CEO. Sterling Auto Insurance Company has seen a similar increase in accidents among its insured vehicles, but while Brakeland's profits have decreased, Sterling's have increased in the same time period.

Which of the following, if true, would most weaken the argument above?

A) Brakeland is experiencing a decrease in corporate insurance claims that have to be paid.

B) Sterling’s customer-service approval ratings have always been higher than Brakeland’s.

C) Both Brakeland and Sterling have experienced an overall rise in claims.

D) Individual policies traditionally account for the majority of Brakeland's profits, while corporate policies have accounted for the majority of Sterling's.

E) Brakeland's new CEO has instituted a policy of hands-on management with the intention of ensuring that senior members of staff are aware of all company problems.
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Re: The excessive paperwork used to process claims at Brakeland Insurance [#permalink]

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New post 01 Jan 2018, 21:54
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deucebigalow wrote:
The excessive paperwork used to process claims at Brakeland Insurance Company, not the increase in accident claims involving privately owned cars, is responsible for the declining profits at Brakeland since the appointment of its new CEO. Sterling Auto Insurance Company has seen a similar increase in accidents among its insured vehicles, but while Brakeland's profits have decreased, Sterling's have increased in the same time period.

Which of the following, if true, would most weaken the argument above?

A) Brakeland is experiencing a decrease in corporate insurance claims that have to be paid.

B) Sterling’s customer-service approval ratings have always been higher than Brakeland’s.

C) Both Brakeland and Sterling have experienced an overall rise in claims.

D) Individual policies traditionally account for the majority of Brakeland's profits, while corporate policies have accounted for the majority of Sterling's.

E) Brakeland's new CEO has instituted a policy of hands-on management with the intention of ensuring that senior members of staff are aware of all company problems.
_________________


The answer is D

Premise 1 : The excessive paperwork used to process claims at Brakeland Insurance Company, not the increase in accident claims involving privately owned cars, is responsible for the declining profits at Brakeland since the appointment of its new CEO.

Premise 2 : Sterling Auto Insurance Company has seen a similar increase in accidents among its insured vehicles

Conclusion : Brakeland's profits have decreased, Sterling's have increased in the same time period.

According to the passage the reason cited for the decline in profit of Brakeland is the excessive paperwork .
The argument gives tangential reasoning by giving us an example of Sterling Auto Insurance Company which has seen increase in profits along in spite of the increase in insurance claims.

A is a strengthener
B is irrelevant to the argument as it gives us new information but does not tell us about the profits in anyway
C is just repetition of the information from the passage .
D is our answer as it tells us the different groups of customer the two companies are dealing with it may so happens that The overall increase in individual policy holders are more for Brakeland therefore decrease in profits.
E Out of scope.

Hope it helps :-)
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Re: The excessive paperwork used to process claims at Brakeland Insurance [#permalink]

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New post 01 Jan 2018, 22:41
there is a question with a similar pattern from kaplan, but that question has a different type.

Kudos [?]: 170 [0], given: 2406

Re: The excessive paperwork used to process claims at Brakeland Insurance   [#permalink] 01 Jan 2018, 22:41
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The excessive paperwork used to process claims at Brakeland Insurance

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