Quiz | August 2009

Can You Navigate Insurance?

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Insurance: It's complex, and it can be quite expensive, too. But you're putting your finances at a big risk if you don't have enough coverage -- or don't know exactly what your policies cover.

So the better you understand insurance, the better you can make it work for you. Get your bearings and protect your finances with our ten-question quiz ...

Quiz

Can You Navigate Insurance?

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Question 1 of 10

What has happened over the past 15 years to the price of term life insurance for healthy adults?

A. Dropped slightly
B. Dropped dramatically
C. Stayed about the same
D. Gone up

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Quiz

Can You Navigate Insurance?

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Question 1 of 10

What has happened over the past 15 years to the price of term life insurance for healthy adults?

You're right! B. Dropped dramatically is correct.

Sorry, wrong! is incorrect.

The right answer is B. Dropped dramatically.

Term life insurance prices have dropped dramatically over the past 15 years. Partly, it's due to medical advances. If you haven't shopped policies recently, give them a look. It's generally easy now for buyers to compare prices online.

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Can You Navigate Insurance?

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Question 2 of 10

Which of the following is true about homeowners' insurance?

A. Insurance companies share information about you in a special database.
B. A poor credit score may result in an increase in your rate.
C. Raising your deductible from $250 to $1,000 can lower your premiums by about 15%.
D. All of the above

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Quiz

Can You Navigate Insurance?

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Question 2 of 10

Which of the following is true about homeowners' insurance?

You're right! D. All of the above is correct.

Sorry, wrong! is incorrect.

The right answer is D. All of the above.

Insurers do share information about your claims with each other in a database called CLUE (check your CLUE report at ChoiceTrust.com). In most states, your credit score is a big factor in setting insurance rates. And the higher deductible lowers your premium because it discourages you from filing small claims.

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Quiz

Can You Navigate Insurance?

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Question 3 of 10

Which factor will NOT raise your life insurance rate?

A. You've lost your drivers license because of too many speeding tickets.
B. You used to smoke but quit five years ago.
C. Your older brother has stomach cancer.

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Quiz

Can You Navigate Insurance?

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Question 3 of 10

Which factor will NOT raise your life insurance rate?

You're right! B. You used to smoke but quit five years ago. is correct.

Sorry, wrong! is incorrect.

The right answer is B. You used to smoke but quit five years ago. .

Smoking is a red flag for life insurers and has a big impact on your rate. But you can get a good price if you haven't smoked for at least a year -- in some cases three to five years - and are otherwise healthy. For more information, see Get the Best Rate on Life Insurance.

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Quiz

Can You Navigate Insurance?

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Question 4 of 10

Your full salary will be replaced if you become disabled and have employer-paid long-term disability insurance.

A. True
B. False

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Quiz

Can You Navigate Insurance?

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Question 4 of 10

Your full salary will be replaced if you become disabled and have employer-paid long-term disability insurance.

You're right! B. False is correct.

Sorry, wrong! is incorrect.

The right answer is B. False.

Employers' group disability insurance typically covers 60% of your base income, not counting bonuses and commissions. If that isn't enough, consider buying an extra disability insurance policy. If you pay the premiums yourself, the benefits are tax-free, so they are worth even more. For more information, see Why You Need Disability Insurance.

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Quiz

Can You Navigate Insurance?

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Question 5 of 10

What can you do to save money on auto insurance after your teenager starts to drive?

A. Buy a separate auto policy in the kid's name
B. Add your teen to your own policy

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Quiz

Can You Navigate Insurance?

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Question 5 of 10

What can you do to save money on auto insurance after your teenager starts to drive?

You're right! B. Add your teen to your own policy is correct.

Sorry, wrong! is incorrect.

The right answer is B. Add your teen to your own policy.

It's usually more expensive, if not impossible, to get a teenage driver his or her own policy. Instead, if you add the teen to your policy, you may save with a multi-car discount, a claims-free discount if the adults haven't had any in several years, and a multi-policy discount if you have other kinds of insurance at the same company.

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Can You Navigate Insurance?

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Question 6 of 10

Which of the following is covered by a standard homeowners insurance policy?

A. Flood water two feet deep in the living room and kitchen
B. Sludge removal after a sewage backup
C. Mysterious disappearance of a $5,000 diamond ring
D. All of the above
E. None of the above

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Can You Navigate Insurance?

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Question 6 of 10

Which of the following is covered by a standard homeowners insurance policy?

You're right! E. None of the above is correct.

Sorry, wrong! is incorrect.

The right answer is E. None of the above.

You need a separate flood policy to cover damage by flooding (www.floodsmart.gov). A separate rider covers sewage backups. Jewelry is generally only covered up to $2,500 or less without a separate rider, and many times not at all without proof of loss or theft.

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Quiz

Can You Navigate Insurance?

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Question 7 of 10

Many health insurers are switching from co-payments to co-insurance. What does that mean?

A. You and a family member share the cost and the benefits.
B. The policy covers both health and disability claims .
C. You pay a percentage, such as 20%, of the charge for doctor's visits and prescriptions.

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Quiz

Can You Navigate Insurance?

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Question 7 of 10

Many health insurers are switching from co-payments to co-insurance. What does that mean?

You're right! C. You pay a percentage, such as 20%, of the charge for doctor's visits and prescriptions. is correct.

Sorry, wrong! is incorrect.

The right answer is C. You pay a percentage, such as 20%, of the charge for doctor's visits and prescriptions..

Over the past few years, many insurers have switched from co-payments, where you pay a fixed dollar amount for each prescription or doctor's visit, to co-insurance, where you pay a percentage of the cost -- making it much more valuable to become a smart health-care shopper.

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Quiz

Can You Navigate Insurance?

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Question 8 of 10

It's always cheaper to buy long-term-care insurance when offered through your employer than on your own.

A. True
B. False

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Quiz

Can You Navigate Insurance?

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Question 8 of 10

It's always cheaper to buy long-term-care insurance when offered through your employer than on your own.

You're right! B. False is correct.

Sorry, wrong! is incorrect.

The right answer is B. False.

Some employers ask few medical questions when offering long-term-care insurance, which can be a great deal for people who have medical conditions. But people who are healthy may find better deals on their own.

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Quiz

Can You Navigate Insurance?

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Question 9 of 10

If you borrow against your cash value in a life insurance policy, how long do you have to repay it?

A. Usually five years
B. Until you're 59½, except in a few states where it's 65
C. It's up to you as long as you keep the insurance in force.
D. Borrowing from a life insurance policy no longer is allowed.

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Quiz

Can You Navigate Insurance?

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Question 9 of 10

If you borrow against your cash value in a life insurance policy, how long do you have to repay it?

You're right! C. It's up to you as long as you keep the insurance in force. is correct.

Sorry, wrong! is incorrect.

The right answer is C. It's up to you as long as you keep the insurance in force..

There's no obligation to repay the loan, but the loan amount and interest are subtracted from the death benefits if the insured dies.

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Quiz

Can You Navigate Insurance?

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Question 10 of 10

Who regulates what life and property insurance companies can charge and when they can cancel your coverage?

A. The Federal Trade Commission
B. The Federal Insurance Administration
C. Your state insurance commissioner
D. All of them and a few more

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Quiz

Can You Navigate Insurance?

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Question 10 of 10

Who regulates what life and property insurance companies can charge and when they can cancel your coverage?

You're right! C. Your state insurance commissioner is correct.

Sorry, wrong! is incorrect.

The right answer is C. Your state insurance commissioner.

Your own home state insurance commissioner is still the sole authority for consumers, though there is clamor in the insurance industry for a federal charter so that companies don't have to deal with as many as 53 separate insurance supervisors.

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Quiz

Can You Navigate Insurance?

Results: 0 out of 10 Right

Quiz | August 2009

Can You Navigate Insurance?

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