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?
- a) The maximum amount that your insurance company will pay for personal insurance claims
- b) The maximum amount your insurance company will pay for property damage
- c) The maximum amount your insurance company will pay for comprehensive damages
- d) The maximum amount your insurance company will pay for collision costs
(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?
- a) At age 50
- b) At age 62
- c) At age 65
- d) One year after retirement
(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?
- a) Nothing because your employer continues to pay premiums up to 18 months
- b) The same as it did while you were employed
- c) The full cost of coverage
(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?
- a) Auto insurance
- b) Homeowners or renters insurance
(In this case, you'd want to turn to your homeowners or renters insurance policy.)
8) When does the term "umbrella policy" refer to?
- a) Coverage that is over and above your primary insurance policies
- b) One general policy for all types of insurance
- c) Coverage for "acts of God" such as hurricanes and earthquakes
- d) Flood insurance coverage
(The metaphorical name refers to coverage that goes beyond your primary policies.)
9) What financial coverage is provided by short-term disability insurance?
- a) A percentage of your income that varies by policy
- b) 100 percent of your income while your disability prevents you from working
- c) Expenses, such as health care, related to your disability
(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.)
See related articles:
- How To Fight Health Insurance Denials
- The Challenge of Taking Out Life Insurance
- From Pet to Marriage Insurance: Good Deals?
- Taking the Anxiety Out of Life Insurance Planning