Quiz Yourself on Your Insurance IQ

April 8, 2010

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If you've ever been confused by your company's open enrollment period or wondered why your auto insurance rates suddenly went up (or down), now is your chance to find out just how well you understand the world of insurance. The National Association of Insurance Commissioners designed the following quiz to test Americans' familiarity with basic insurance facts. After testing yourself, read about the answers here. To educate yourself further, check out the Association's consumer website, Insure U.

My credit score affects my auto insurance rates.
1. True
2. False
All 50 states require auto insurance.
1. True
2. False
I can only make changes to my work’s group health insurance coverage during the open enrollment period.
1. True
2. False
If your auto policy says your liability coverages are 100/300/100, what coverage does that last figure represent?
1. The maximum amount that your insurance company will pay for personal insurance claims
2. The maximum amount your insurance company will pay for property damage
3. The maximum amount your insurance company will pay for comprehensive damages
4. The maximum amount your insurance company will pay for collision costs
When do most people become eligible for Medicare?
1. At age 50
2. At age 62
3. At age 65
4. One year after retirement
If you leave your job and maintain your health insurance through COBRA, how much does it cost you?
1. Nothing because your employer continues to pay premiums up to 18 months
2. The same as it did while you were employed
3. The full cost of coverage
If thieves break into your car and steal valuables, what type of insurance would cover your losses?
1. Auto insurance
2. Homeowners or renters insurance
When does the term “umbrella policy” refer to?
1. Coverage that is over and above your primary insurance policies
2. One general policy for all types of insurance
3. Coverage for “acts of God” such as hurricanes and earthquakes
4. Flood insurance coverage
What financial coverage is provided by short-term disability insurance?
1. A percentage of your income that varies by policy
2. 100 percent of your income while your disability prevents you from working
3. Expenses, such as health care, related to your disability
You must be related to the people who are named as beneficiaries on your insurance policies.
1. True
2. False

How did you do? If you scored…

0 to 3 points: You have some work to do when it comes to understanding the world of insurance, but don't worry because you're not alone. When the National Association of Insurance Commissioners performed this survey, it found that most respondents were unable to correctly answer most questions.

4 to 7 points: You score a C+: You could stand to get to know a bit more about insurance, but you have a decent grasp on a complicated subject matter.

8 to 10 points: Congratulations, you have mastered the world of insurance. But do you have enough coverage for yourself and your family? Check out these articles for more information:

Get the answers here.

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The recent Insurance IQ study conducted by the National Association of Insurance Commissioners (NAIC) provides strong evidence that consumers need a trusted advisor when it comes to answering their insurance questions.
“We applaud the NAIC for undertaking this study,” said Tom Currey CLU, ChFC, LUTCF, President of the National Association of Insurance and Financial Advisors (NAIFA). “Consumers need to know that insurance agents are a huge resource when it comes to selecting the right insurance plan at the right price for their particular need, and for answering all of their questions.”
The NAIC study found that consumers are unclear about their health and automobile insurance coverage and have lots of questions.
“Consumers should think of their insurance agent as their personal tutor and guide,” commented Currey. “Insurance agents examine their clients’ needs and present and explain the options to help them meet their goals and dreams.”
NAIFA also applauded the NAIC’s recommendation that consumers shop for their insurance advisor.
“NAIFA member agents have been providing consumers with trusted advice for close to 125 years,”
added Currey. “Consumers can find information on how an agent can help them, as well as find an agent in their area, on the NAIFA website at www.naifa.org/consumer.”

Diane of VA 5:44PM April 09, 2010

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Quiz Yourself on Your Insurance IQ

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Alpha Consumer

Quiz Yourself on Your Insurance IQ

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