It is currently 19 Nov 2017, 07:41

Close

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
Your Progress

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

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

Vasquez-Morrell Assurance specializes in insuring

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

Intern
Intern
avatar
Joined: 10 May 2011
Posts: 27

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

Vasquez-Morrell Assurance specializes in insuring [#permalink]

Show Tags

New post 28 Jul 2011, 05:58
2
This post was
BOOKMARKED
00:00
A
B
C
D
E

Difficulty:

  5% (low)

Question Stats:

82% (01:13) correct 18% (01:43) wrong based on 609 sessions

HideShow timer Statistics

Vasquez-Morrell Assurance specializes in insuring manufacturers. Whenever a policyholder makes a claim, a claims adjuster determines the amount that Vasquez-Morrell is obligated to pay. Vasquez-Morrell is cutting its staff of claims adjusters by 15 percent. To ensure that the company’s ability to handle claims promptly is affected as little as possible by the staff cuts, consultants recommend that Vasquez-Morrell lay off those adjusters who now take longest, on average, to complete work on claims assigned to them.

Which of the following, if true, most seriously calls into question the consultants’ criterion for selecting the staff to be laid off?

(A) If the time that Vasquez-Morrell takes to settle claims increases significantly, it could lose business to other insurers.
(B) Supervisors at Vasquez-Morrell tend to assign the most complex claims to the most capable adjusters.
(C) At Vasquez-Morrell, no insurance payments are made until a claims adjuster has reached a final determination on the claim.
(D) There are no positions at Vasquez-Morrell to which staff currently employed as claims adjusters could be reassigned.
(E) The premiums that Vasquez-Morrell currently charges are no higher than those charged for similar coverage by competitors.

Official Guide 12 Question

GMAT Official Guide 12

Question: 18
Page: 33
Difficulty: 600

Find All Official Guide Questions

Video Explanations:
[Reveal] Spoiler: OA

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

Intern
Intern
avatar
Joined: 04 Jul 2011
Posts: 24

Kudos [?]: 14 [0], given: 4

Re: Vasquez-Morrell Assurance [#permalink]

Show Tags

New post 28 Jul 2011, 06:15
The assurance company needs to layoff workers, but wants to continue to provide high level service. It hires consultants to determine whom to lay off. The consultants say lay off adjusters who take the longest to complete their work on claims.

B is the answer because one can imagine a situation where the most complex claims will take longer than really simple claims. If your complex claims are being handled by your best people and they take longer, then the consultants suggestion will result in you laying off your best people. That's not ideal at all.

C doesn't really call into question the consultants recommendation does it? I mean, look, it says that claims will not be paid until the adjuster makes final determination. That seems to support the idea that hey, this company really needs to get rid of people who take too long on claims right?

Another way to think about it is that you have a group of people working on claims. They all having varying speeds of completing their work. Now a bunch of them are going to be laid off. That means that the remaining workers will have to pick up the work of the laid off workers. In this situation knowing that your remaining workers are going to have to take the work of the laid off workers, would you rather lay off the slow people or the fast people? Well, you'd lay off the slow people right because if you gave the slow people even more work, they'd take even longer to complete the claims whereas if you gave the fast people the slow people's work, they'd be better able to get the claims done quickly.

Thus, C supports the consultants conclusion and is the incorrect answer.

Kudos [?]: 14 [0], given: 4

Director
Director
avatar
Status: Prep started for the n-th time
Joined: 29 Aug 2010
Posts: 672

Kudos [?]: 198 [0], given: 37

Re: Vasquez-Morrell Assurance [#permalink]

Show Tags

New post 28 Jul 2011, 07:38
+1 for B.

Crick

Kudos [?]: 198 [0], given: 37

Intern
Intern
avatar
Joined: 10 May 2011
Posts: 27

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

Re: Vasquez-Morrell Assurance [#permalink]

Show Tags

New post 28 Jul 2011, 23:37
JohnGaltMBA.. thanks

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

Senior Manager
Senior Manager
avatar
Joined: 08 Jun 2010
Posts: 387

Kudos [?]: 102 [0], given: 13

Location: United States
Concentration: General Management, Finance
GMAT 1: 680 Q50 V32
Re: Vasquez-Morrell Assurance [#permalink]

Show Tags

New post 29 Jul 2011, 05:39
Simply put in the flow of information, adjuster comes after the claims have been made. This simplifies the entire problem.

Posted from my mobile device

Kudos [?]: 102 [0], given: 13

Intern
Intern
avatar
Joined: 02 Nov 2009
Posts: 21

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

Schools: ISB
Re: Vasquez-Morrell Assurance [#permalink]

Show Tags

New post 29 Jul 2011, 06:07
Most complex problems take more time to solve . And hence they go to the most capable people . Hence B is the answer .

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

Manager
Manager
avatar
Joined: 24 Jun 2011
Posts: 51

Kudos [?]: 9 [0], given: 6

Re: Vasquez-Morrell Assurance [#permalink]

Show Tags

New post 29 Jul 2011, 06:24
I think here we have to apply a known fact to reach B. Such as complex claims take more time to solve.
C does not have any effect on the conclusion anyhow.

Kudos [?]: 9 [0], given: 6

Manager
Manager
avatar
Joined: 01 Dec 2008
Posts: 61

Kudos [?]: 3 [0], given: 2

GMAT ToolKit User
Re: Vasquez-Morrell Assurance [#permalink]

Show Tags

New post 29 Jul 2011, 11:08
A claim is paid after the adjuster determines the final amount-> This is not disputed, however, the time taken to reach the decision is being considered in the question. Here C does not fit the bill
B is the answer

Kudos [?]: 3 [0], given: 2

Manager
Manager
User avatar
Status: Dream big, work hard, and drink gallons of beer!
Joined: 11 Jun 2011
Posts: 204

Kudos [?]: 60 [0], given: 33

Concentration: Finance, General Management
GMAT Date: 10-01-2011
WE: Web Development (Consulting)
Re: Vasquez-Morrell Assurance [#permalink]

Show Tags

New post 29 Jul 2011, 11:54
+1 for B
_________________

If I look absent-minded or insane, I am just living a dream of being successful. If you still wonder why I am like this, you have no idea how success tastes like!

Kudos [?]: 60 [0], given: 33

Retired Moderator
User avatar
Status: 2000 posts! I don't know whether I should feel great or sad about it! LOL
Joined: 04 Oct 2009
Posts: 1628

Kudos [?]: 1120 [0], given: 109

Location: Peru
Schools: Harvard, Stanford, Wharton, MIT & HKS (Government)
WE 1: Economic research
WE 2: Banking
WE 3: Government: Foreign Trade and SMEs
Re: Vasquez-Morrell Assurance [#permalink]

Show Tags

New post 15 Aug 2011, 08:53
+1 B
_________________

"Life’s battle doesn’t always go to stronger or faster men; but sooner or later the man who wins is the one who thinks he can."

My Integrated Reasoning Logbook / Diary: http://gmatclub.com/forum/my-ir-logbook-diary-133264.html

GMAT Club Premium Membership - big benefits and savings

Kudos [?]: 1120 [0], given: 109

Director
Director
User avatar
Joined: 21 Dec 2010
Posts: 622

Kudos [?]: 282 [0], given: 51

Re: Vasquez-Morrell Assurance [#permalink]

Show Tags

New post 15 Aug 2011, 22:36
johngaltmba,why would john galt do mba ? wont that be unnecessary for galt ?
_________________

What is of supreme importance in war is to attack the enemy's strategy.

Kudos [?]: 282 [0], given: 51

Manager
Manager
avatar
Joined: 22 Jun 2010
Posts: 192

Kudos [?]: 127 [0], given: 13

Re: Vasquez-Morrell Assurance [#permalink]

Show Tags

New post 16 Aug 2011, 01:16
in the first run I went for C too! very tempting 8)
under the pressure...it's tough!
so good a question

Kudos [?]: 127 [0], given: 13

Manager
Manager
User avatar
Status: Work hard in silence, let success make the noise
Joined: 25 Nov 2013
Posts: 157

Kudos [?]: 82 [0], given: 84

Location: India
Concentration: Finance, General Management
GMAT 1: 540 Q50 V15
GMAT 2: 640 Q50 V27
GPA: 3.11
WE: Consulting (Computer Software)
Re: Vasquez-Morrell Assurance specializes in insuring [#permalink]

Show Tags

New post 12 Jan 2014, 08:09
Only B weakens the consultants’ criterion for selecting the staff to be laid off. Rest all the options do not weaken.
_________________

Sahil Chaudhary
If you find this post helpful, please take a moment to click on the "+1 KUDOS" icon.
My IELTS 7.5 Experience
From 540 to 640...Done with GMAT!!!
http://www.sahilchaudhary007.blogspot.com

Kudos [?]: 82 [0], given: 84

Intern
Intern
User avatar
Joined: 25 Feb 2014
Posts: 18

Kudos [?]: 8 [0], given: 12

Location: Taiwan
GMAT 1: 660 Q49 V30
GPA: 3.9
Re: Vasquez-Morrell Assurance specializes in insuring [#permalink]

Show Tags

New post 03 Mar 2014, 15:44
I don't see B as a valid answer though. "Complex claims" aren't necessary the most time-consuming, and it would be dodgy to assume it yourself. Unless you arrive B by PoE
_________________

Aiming for a 750. Let me know if this is possible.
Ted Chou

Kudos [?]: 8 [0], given: 12

VP
VP
avatar
Status: Final Lap Up!!!
Affiliations: NYK Line
Joined: 21 Sep 2012
Posts: 1078

Kudos [?]: 661 [0], given: 70

Location: India
GMAT 1: 410 Q35 V11
GMAT 2: 530 Q44 V20
GMAT 3: 630 Q45 V31
GPA: 3.84
WE: Engineering (Transportation)
Re: Vasquez-Morrell Assurance specializes in insuring [#permalink]

Show Tags

New post 04 Mar 2014, 01:15
tedchou12 wrote:
I don't see B as a valid answer though. "Complex claims" aren't necessary the most time-consuming, and it would be dodgy to assume it yourself. Unless you arrive B by PoE

When you compare two equally efficient employee given two sets of different type of task one being tough and other being relatively easier...What do you think who can finish the work faster?

Archit

Kudos [?]: 661 [0], given: 70

Manager
Manager
avatar
Joined: 28 May 2014
Posts: 60

Kudos [?]: 1 [0], given: 31

Schools: NTU '16
GMAT 1: 620 Q49 V27
Re: Vasquez-Morrell Assurance specializes in insuring [#permalink]

Show Tags

New post 25 Aug 2014, 09:30
JohnGaltMBA

Shouldn't the best adjusters take little time in assessing the claims?

Kudos [?]: 1 [0], given: 31

Verbal Forum Moderator
User avatar
Status: Getting strong now, I'm so strong now!!!
Affiliations: National Institute of Technology, Durgapur
Joined: 04 Jun 2013
Posts: 561

Kudos [?]: 711 [0], given: 80

Location: India
GPA: 3.32
WE: Information Technology (Computer Software)
GMAT ToolKit User Premium Member Reviews Badge
Vasquez-Morrell Assurance specializes in insuring manufacturers [#permalink]

Show Tags

New post 21 Dec 2014, 08:13
2
This post was
BOOKMARKED
Vasquez-Morrell Assurance specializes in insuring manufacturers. Whenever a policyholder makes a claim, a claims adjuster determines the amount that Vasquez-Morrell is obligated to pay. Vasquez-Morrell is cutting its staff of claims adjusters by 15 percent. To ensure that the company’s ability to handle claims promptly is affected as little as possible by the staff cuts, consultants recommend that Vasquez-Morrell lay off those adjusters who now take longest, on average, to complete work on claims assigned to them.
Which of the following, if true, most seriously calls into question the consultants’ criterion for selecting the staff to be laid off?
(A) If the time that Vasquez-Morrell takes to settle claims increases significantly, it could lose business to other insurers.
(B) Supervisors at Vasquez-Morrell tend to assign the most complex claims to the most capable adjusters.
(C) At Vasquez-Morrell, no insurance payments are made until a claims adjuster has reached a final determination on the claim.
(D) There are no positions at Vasquez-Morrell to which staff currently employed as claims adjusters could be reassigned.
(E) The premiums that Vasquez-Morrell currently charges are no higher than those charged for similar coverage by competitors.
_________________

Regards,

S

Consider +1 KUDOS if you find this post useful


Last edited by broall on 26 May 2017, 08:40, edited 1 time in total.
Merged topic. Please search before posting question.

Kudos [?]: 711 [0], given: 80

1 KUDOS received
Intern
Intern
User avatar
Joined: 23 Dec 2011
Posts: 36

Kudos [?]: 22 [1], given: 26

Location: United States
Concentration: Technology, General Management
GPA: 3.83
WE: Programming (Computer Software)
Re: Vasquez-Morrell Assurance specializes in insuring manufacturers [#permalink]

Show Tags

New post 26 Dec 2014, 10:23
1
This post received
KUDOS
1
This post was
BOOKMARKED
P1 : Vasquez-Morrell Assurance specializes in insuring manufacturers.
P2 : Whenever a policyholder makes a claim, a claims adjuster determines the amount that Vasquez-Morrell is obligated to pay.
P3 : Vasquez-Morrell is cutting its staff of claims adjusters by 15 percent.
Goal : To ensure that the company’s ability to handle claims promptly is affected as little as possible by the staff cuts,
Method to achieve the goal : consultants recommend that Vasquez-Morrell lay off those adjusters who now take longest, on average, to complete work on claims assigned to them.

Assumption: method to achieve the goal will not have other bad impact on the goal.

To find the 'statement which most seriously calls into question the consultants’ criterion for selecting the staff to be laid off', we need to hit out assumption. So, we need to show that if there is longer time taking staffs are laid off, it will impact the ability to handle claims promptly.

(A) If the time that Vasquez-Morrell takes to settle claims increases significantly, it could lose business to other insurers.
>> It is strengthener

(B) Supervisors at Vasquez-Morrell tend to assign the most complex claims to the most capable adjusters.
>> Yeah, if complex claims handlers (and hence longer time taker) are laid off, the time taken to handle those claims would increase further than would decrease. hence, it is a weakener.

(C) At Vasquez-Morrell, no insurance payments are made until a claims adjuster has reached a final determination on the claim.
>> nonsensical

(D) There are no positions at Vasquez-Morrell to which staff currently employed as claims adjusters could be reassigned.
>> there is scarcity of jobs there. laid off employee will not be given work. But how does that matters.

(E) The premiums that Vasquez-Morrell currently charges are no higher than those charged for similar coverage by competitors.
>> nonsensical

Kudos [?]: 22 [1], given: 26

Director
Director
User avatar
G
Joined: 26 Oct 2016
Posts: 690

Kudos [?]: 227 [0], given: 855

Location: United States
Concentration: Marketing, International Business
Schools: HBS '19
GMAT 1: 770 Q51 V44
GPA: 4
WE: Education (Education)
Re: Vasquez-Morrell Assurance specializes in insuring manufacturers [#permalink]

Show Tags

New post 27 Mar 2017, 06:04
I am not able to understand How b is an answer to this problem.
_________________

Thanks & Regards,
Anaira Mitch

Kudos [?]: 227 [0], given: 855

Expert Post
Top Contributor
1 KUDOS received
GMAT Club Verbal Expert
User avatar
G
Status: GMAT and GRE tutor
Joined: 13 Aug 2009
Posts: 1159

Kudos [?]: 1872 [1], given: 448

Location: United States
GMAT 1: 780 Q51 V46
GMAT 2: 800 Q51 V51
GRE 1: 340 Q170 V170
Re: Vasquez-Morrell Assurance specializes in insuring manufacturers [#permalink]

Show Tags

New post 27 Mar 2017, 08:35
1
This post received
KUDOS
Expert's post
Top Contributor
So here's what we're being asked for:

Quote:
Which of the following, if true, most seriously calls into question the consultants’ criterion for selecting the staff to be laid off?


And this is the consultants’ criterion for selecting the staff to be laid off:

Quote:
...consultants recommend that Vasquez-Morrell lay off those adjusters who now take longest, on average, to complete work on claims assigned to them.


And as kumarashok29 mentioned, here's the company's goal, in the exact words of the passage:

Quote:
To ensure that the company’s ability to handle claims promptly is affected as little as possible by the staff cuts...


Kumarashok29's answer is pretty thorough here -- but let's talk a little bit more about B.

Suppose that B is true, and "supervisors at Vasquez-Morrell tend to assign the most complex claims to the most capable adjusters." If so, then the company's best adjusters might also be among the slowest, since they're assigned the most complex claims. And "the most capable adjusters" are exactly the ones that you don't want to lay off. If the company lays off the best adjusters, it follows that their goal ("handle claims promptly") will be undermined.

I hope this helps!
_________________

GMAT Club Verbal Expert | GMAT/GRE tutor at www.gmatninja.com (Now hiring!) | GMAT blog | Food blog | Friendly warning: I'm bad at PMs

GMAT Ninja Wednesdays LIVE on YouTube
Join us, and ask your questions in advance!

Beginners' guides to GMAT verbal
Reading Comprehension | Critical Reasoning | Sentence Correction

SC & CR Questions of the Day (QOTDs), featuring expert explanations
All QOTDs | Subscribe via email | RSS

Need an expert reply?
Hit the request verbal experts' reply button -- and please be specific about your question. Feel free to tag @GMATNinja and @GMATNinjaTwo in your post.

Sentence Correction articles & resources
How to go from great (760) to incredible (780) on GMAT SC | That "-ing" Word Probably Isn't a Verb | That "-ed" Word Might Not Be a Verb, Either | No-BS Guide to GMAT Idioms | "Being" is not the enemy | WTF is "that" doing in my sentence?

Reading Comprehension, Critical Reasoning, and other articles & resources
All GMAT Ninja articles on GMAT Club | Using LSAT for GMAT CR & RC |7 reasons why your actual GMAT scores don't match your practice test scores | How to get 4 additional "fake" GMAT Prep tests for $29.99... in any section order

YouTube verbal webinars:
"Next-level" GMAT pronouns | Uses of "that" on the GMAT | Parallelism and meaning | Simplifying GMAT verb tenses | Comparisons, part I |
November webinar schedule

Kudos [?]: 1872 [1], given: 448

Re: Vasquez-Morrell Assurance specializes in insuring manufacturers   [#permalink] 27 Mar 2017, 08:35

Go to page    1   2    Next  [ 21 posts ] 

Display posts from previous: Sort by

Vasquez-Morrell Assurance specializes in insuring

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.