Critical Reasoning (CR) | Re: Insurance Company X is considering issuing a new policy to

I think this question actually require prior knowledge of Insurance Policy, specifically Insurance Company's revenue equal to the premium times the amount of time that the client pays. Some who did not have this prior knowledge would think that "Premiums" in the argument is the total income for the Insurance company and have no thing to do with the installing time.

Well... am I thinking that just because I'm a foreign student? Is it something intuitive to native speakers?