After taking the insurance quiz from the National Association of Insurance Commissioners, find out the answers below. The correct answers are in bold. For more information, check out the Association's consumer website, Insure U.
1) My credit score affects my auto insurance rates.
(Your credit score can affect the cost of your auto policy, along with your driving record, type of vehicle, and where you live.)
2) All 50 states require auto insurance.
(Currently, not all states require auto insurance. All states, however, require proof that you can pay certain amounts if you are responsible for bodily injury or property damage.)
3) I can only make changes to my work's group health insurance coverage during the open enrollment period.
(Employees can also make changes after major life changes such as marriage or birth of a child.)
4) If your auto policy says your liability coverages are 100/300/100, what coverage does that last figure represent?
(In this case, your auto insurance would cover up to $100,000 worth of property damage.)
5) When do most people become eligible for Medicare?
(Medicare is a health insurance program for people age 65 and older.)
6) If you leave your job and maintain your health insurance through COBRA, how much does it cost you?
(Maintaining COBRA can be quite expensive since people are responsible for the full cost on their own.)
7) If thieves break into your car and steal valuables, what type of insurance would cover your losses?
(In this case, you'd want to turn to your homeowners or renters insurance policy.)
8) When does the term "umbrella policy" refer to?
(The metaphorical name refers to coverage that goes beyond your primary policies.)
9) What financial coverage is provided by short-term disability insurance?
(Details vary, but coverage usually includes a pre-determined percentage of income.)
10) You must be related to the people who are named as beneficiaries on your insurance policies.
(There's no need to select relatives as beneficiaries, although most people decide to do so.)
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