Home insurance premiums are typically set after an appraiser assigns an official assessed value. Reassessments should be frequent in order to remove distortions that arise when property value changes at differential rates. In actual fact, however, properties are reassessed only when they stand to benefit the insurance company. In other words, a reassessment takes place when the most likely outcome is in increase in insurance premiums to the homeowner. Which of the following, if true, describes a situation in which a reassessment should occur but is unlikely to do so?

Question

Examsnet · Accepted Answer

Correct Answer is : Property values have on the whole dropped significantly; yet some have risen slightly.

GMAT Verbal Reasoning Practice Test 1