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The Right Insurance Company

GMAT-WMFYYE

The Right Insurance Company has been paying out more on home theft claims than in recent years. The Right Insurance Company has educated its customers on the fact that homes with security alarm systems are much less likely to be broken into than homes without alarm systems. Therefore, in an effort to reduce its payouts for theft claims, The Right Insurance Company has decided to offer discounts on homeowners' policies to customers that have alarm systems installed in their homes.

If true, which of the following provides the BEST support for the assertion that this plan will help the Right Insurance Company achieve this goal?

A

The amount of money The Right Insurance Company has been paying out is greater for homes in subdivisions than homes in city streets.

B

Legally, The Right Insurance Company cannot raise premiums for homeowners' theft policies.

C

The discounted policy rate offered to homeowners with alarm systems will benefit customers by providing more savings than the cost of installing an alarm system over three years.

D

The percentage of policy holders filing claims with The Right Insurance Company for home theft is slightly higher than The Right Insurance Company’s closest competitors.

E

There is only a decreased threat of home theft when a limited number of homes in a square mile have home security alarm systems.