GMAT Critical Reasoning
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Source: OG
Level: 3
Fewer families lose their houses because of major disasters such as fire or flood than because of a wage earner's illness that results in death or disability. Yet, whereas most mortgage companies require borrowers to carry insurance to protect against major disasters, they do not require insurance to protect against the death or disability of a wage earner.
Which of the following, if true, would contribute most to an explanation of the difference in insurance requirements?
- A Some people are less aware of tragedies caused by major disasters than of those caused by the death or disability of a wage earner.
- B Many people are made uncomfortable by having to consider the possibility of their own death or disability or that of a family member.
- C Few wage earners are insured by their employers against a temporary loss of income resulting from disability.
- D The value of a property to a mortgage company is not affected by the death or disability of a wage earner.
- E Insuring against major disasters can be more costly than insuring against death or disability.