Test: LSAT Logical Reasoning

1.

Over the past ten years, insurance premiums have increased, resulting in a large decrease in insurance enrollment across the country. Insurance company revenues, however, have progressively increased in each of the ten years during this period, and industry analysts predict further increases in years to come.

 

Which one of the following, if true, offers the best explanation for the situation described above?

Most insurance companies raise their premiums every three years.

The rise of concierge medicine exceeds the number of those enrolling in traditional insurance in most high-income areas.

The decrease in the number of people enrolling for health insurance over the past ten years has been more than offset by the increases in insurance premiums.

More individuals are seeking a subsidy for their health care.

Insurance companies donate substantial sums of money to political campaigns.

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