LSAT Practice Test

Based on the information provided, what is the anticipated action due to fraud costing the insurance industry millions of dollars and the powerful lobby they have?

1. Congress will ignore the issue

2. Insurance premiums will decrease

3. Congress will pass a stricter fraud control bill

4. The insurance industry will collapse

The correct answer is: Congress will pass a stricter fraud control bill

The anticipated action due to fraud costing the insurance industry millions of dollars and the powerful lobby they have is that Congress will pass a stricter fraud control bill. This is the correct answer because when fraudulent activities significantly impact an industry and are brought to the attention of lawmakers, Congress is more likely to take action by implementing stricter regulations to prevent further fraud and protect consumers and the industry itself. Option A is incorrect because ignoring the issue would not address the problem of fraud affecting the industry. Option B is incorrect because if fraud is costing the insurance industry millions of dollars, it is unlikely that insurance premiums would decrease as a result. Option D is incorrect as it is an extreme outcome and unlikely to occur solely based on fraud costing the industry money and having a strong lobby.