GMAT Critical Reasoning
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Source: OG
Level: 4
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.