The Americans believe they are Savvy about insurance, but in
Wednesday, Mar 11,2009, 3:54:29 PM Click:
Copyright: PR Newswire
Source: PR Newswire
Wordcount: 1173
On average, respondents could not correctly answer
four of 10 basic questions of insurance
KANSAS CITY, Mo., March 10 / PRNewswire / - In these uncertain financial times, knowledge is your best policy - especially when it comes to insurance. According to a new study commissioned by the National Association of Insurance Commissioners (NAIC), a large majority of Americans think they are smart about insurance, but a closer look at the issue tells a different story. If you also believe that you have a strong insurance IQ ", see if you can answer these three questions:
1. Does the insurance cover automatically auto rental car? 2. Can you own a home owners without insurance? 3. In general, how much life insurance is recommended in relation to your annual salary?
If you answered no, yes and 5.7 times your annual salary, you have beaten the majority of American adults in 1000 that a crime in a quiz of 10 questions designed to test the nation IQ insurance. Indeed, on average, Americans failed the test with a score of 40 percent - a solid "F" by most standards for the classification of U.S. education.
This apparent lack of knowledge contrasts sharply with the level of confidence expressed by respondents. Before taking the IIQ, nearly 60 percent said they feel "very confident" in decisions of the insurance in general, with only 15 percent express insecurity about their capacity for decision-making .
In today's economy, consumers need to understand their insurance coverage
With rising unemployment and falling house prices, Americans need to make sure they understand what their insurance policies cover. Being careful, informed decisions about their insurance, consumers are saving money and ensuring the long-term protection for themselves and their families.
"Now more than ever, consumers should be aware of the impact of their decisions can be assured of their financial future," said CEO NAIC Terri Vaughan. "By arming them with the facts own - and to improve their IQ insurance - consumers can ensure they are adequately protected, without having to pay more than they should for that coverage. "
Among the main findings of the NAIC:
Health: Less than half of respondents (49 percent) know that if they leave their jobs and choose the federal Consolidated Budget Reconciliation Act (COBRA) to continue their health benefits, they must pay the full cost of coverage. However, 58 percent are aware that health insurance does not cover their expenses if they became disabled and can not do their work.
Home: Just one in five respondents (19 percent) realize that the requirement for mortgage insurance from the private sector (PMI) on a newly acquired house depends on the size of the deposit and the lender, with almost 30 per one hundred think PMI is required by law. Less than 50 percent of respondents realize they can legally own a home without homeowners insurance (even if lenders will not allow it).
Life: only 14 percent of respondents know that the amount of life insurance is usually recommended for people with 5-7 times your annual salary by 29 percent believe 2-4 times an annual salary is the amount recommended and around 40 per cent say they have no idea.
Auto: Less than two-thirds of Americans (62 percent) are aware of three factors that affect the cost of insurance coverage automobile (ie, history of accidents, vehicle safety, geography). And only four in 10 respondents (41 percent) know that the automobile insurance does not automatically cover a rental car.
How to improve your insurance IQ
Here are four tips to help Americans better understand their insurance policies:
1. Get Savvy. Before buying a policy, learn as much as you can about insurance. The NAIC's award-winning Insure U consumer education Web site (www.insureUonline.org) is an impartial, expert resources to help you understand the types of insurance available, the factors that affect price and insurance options to your personal situation. 2. Shop Around, Do your homework. After learning the basic insurance, obtain premium quotes from several companies for the amount of coverage you need. The NAIC survey revealed that, although many competent Americans on personal experience and recommendations from family and friends when deciding on insurance, nearly 90 percent do not collect information from d ' other more reliable sources of information - such as their state insurance department. State regulation of insurance offers several online tools to help consumers with insurance-buying process. Source NAIC Consumer Information (https: / / eapps.naic.org / cis) provides basic facts about insurance companies, including complaint rates, licenses and details of financial data. 3. Before embarking: Stop. Call. Confirm. If you are unsure of an insurer or agent with whom you work 1) Stop before signing any document or writing a check, 2) Call your state department of insurance (easily accessible by phone) and 3) Confirm the company or agent is legitimate and authorized to do business in your state. Visit www.naic.org / state_web_map.htm to go directly to your state insurance department's website. 4. Review your policy. Do not wait until you file a claim before assessing the extent of your coverage. Insurance IQ study found that 60 percent of respondents do not regularly review their policy - that is, they are until they are filing a claim or renewing their coverage. Twenty-five percent admitted to rarely or never seeking their policies. Through understanding of your policies, you can prepare for any situation and, possibly, saving money by avoiding unnecessary costs.
Another important point to remember: Throughout the year, May you encounter the development of employment, salary, location and / or family dynamics. These factors affect your insurance options and the amount of coverage you need. Whenever your circumstances change, be sure to review your insurance coverage and make the necessary adjustments.
Want to see your comments knowledge batteries against the rest of America? Go to www.insureUonline.org and take assurance tests to see your comment you are warned.
About the Survey
The NAIC conducted a study of insurance-IQ 4-14 December 2008, highlighting consumer concerns and questions of Misinformation and insurance to discover the myths and highlight the financial impact and emotional bad decisions. IQ assurance was based on a questionnaire of 10 questions on various types of insurance. Participants received a note on the number of questions answered correctly. The sample included participants from a nationally representative sample of 1,000 U.S. adults aged 18 years and older with a margin of error of + / - 3.1 per cent in 95 out of 100 cases.
About the NAIC
Established in 1871, the National Association of Insurance Commissioners (NAIC) is a voluntary organization of chief insurance regulatory officials of the 50 states, the District of Columbia United States and five territories. The NAIC has three offices: Executive Office, Washington, DC, Headquarters, Kansas City, Mo., and securities valuation office of the New York City. NAIC serves the needs of consumers and industry with an objective to support the state of regulation of car insurance they protect consumers and maintain the financial stability of the insurance market. For more information, visit www.naic.org.
Contact: Katie Wood kathryn.wood @ edelman.com 312-240-2827
SOURCE National Association of Insurance Commissioners
CONTACT: Katie Wood, +1-312-240-2827, kathryn.wood @ edelman.com, for the National Association of Insurance Commissioners
This is an information service of Thomson Business Intelligence Service © 2006. This content is only for your personal use, subject to the terms and conditions. No redistribution allowed.
Source: PR Newswire
Wordcount: 1173
On average, respondents could not correctly answer
four of 10 basic questions of insurance
KANSAS CITY, Mo., March 10 / PRNewswire / - In these uncertain financial times, knowledge is your best policy - especially when it comes to insurance. According to a new study commissioned by the National Association of Insurance Commissioners (NAIC), a large majority of Americans think they are smart about insurance, but a closer look at the issue tells a different story. If you also believe that you have a strong insurance IQ ", see if you can answer these three questions:
1. Does the insurance cover automatically auto rental car? 2. Can you own a home owners without insurance? 3. In general, how much life insurance is recommended in relation to your annual salary?
If you answered no, yes and 5.7 times your annual salary, you have beaten the majority of American adults in 1000 that a crime in a quiz of 10 questions designed to test the nation IQ insurance. Indeed, on average, Americans failed the test with a score of 40 percent - a solid "F" by most standards for the classification of U.S. education.
This apparent lack of knowledge contrasts sharply with the level of confidence expressed by respondents. Before taking the IIQ, nearly 60 percent said they feel "very confident" in decisions of the insurance in general, with only 15 percent express insecurity about their capacity for decision-making .
In today's economy, consumers need to understand their insurance coverage
With rising unemployment and falling house prices, Americans need to make sure they understand what their insurance policies cover. Being careful, informed decisions about their insurance, consumers are saving money and ensuring the long-term protection for themselves and their families.
"Now more than ever, consumers should be aware of the impact of their decisions can be assured of their financial future," said CEO NAIC Terri Vaughan. "By arming them with the facts own - and to improve their IQ insurance - consumers can ensure they are adequately protected, without having to pay more than they should for that coverage. "
Among the main findings of the NAIC:
Health: Less than half of respondents (49 percent) know that if they leave their jobs and choose the federal Consolidated Budget Reconciliation Act (COBRA) to continue their health benefits, they must pay the full cost of coverage. However, 58 percent are aware that health insurance does not cover their expenses if they became disabled and can not do their work.
Home: Just one in five respondents (19 percent) realize that the requirement for mortgage insurance from the private sector (PMI) on a newly acquired house depends on the size of the deposit and the lender, with almost 30 per one hundred think PMI is required by law. Less than 50 percent of respondents realize they can legally own a home without homeowners insurance (even if lenders will not allow it).
Life: only 14 percent of respondents know that the amount of life insurance is usually recommended for people with 5-7 times your annual salary by 29 percent believe 2-4 times an annual salary is the amount recommended and around 40 per cent say they have no idea.
Auto: Less than two-thirds of Americans (62 percent) are aware of three factors that affect the cost of insurance coverage automobile (ie, history of accidents, vehicle safety, geography). And only four in 10 respondents (41 percent) know that the automobile insurance does not automatically cover a rental car.
How to improve your insurance IQ
Here are four tips to help Americans better understand their insurance policies:
1. Get Savvy. Before buying a policy, learn as much as you can about insurance. The NAIC's award-winning Insure U consumer education Web site (www.insureUonline.org) is an impartial, expert resources to help you understand the types of insurance available, the factors that affect price and insurance options to your personal situation. 2. Shop Around, Do your homework. After learning the basic insurance, obtain premium quotes from several companies for the amount of coverage you need. The NAIC survey revealed that, although many competent Americans on personal experience and recommendations from family and friends when deciding on insurance, nearly 90 percent do not collect information from d ' other more reliable sources of information - such as their state insurance department. State regulation of insurance offers several online tools to help consumers with insurance-buying process. Source NAIC Consumer Information (https: / / eapps.naic.org / cis) provides basic facts about insurance companies, including complaint rates, licenses and details of financial data. 3. Before embarking: Stop. Call. Confirm. If you are unsure of an insurer or agent with whom you work 1) Stop before signing any document or writing a check, 2) Call your state department of insurance (easily accessible by phone) and 3) Confirm the company or agent is legitimate and authorized to do business in your state. Visit www.naic.org / state_web_map.htm to go directly to your state insurance department's website. 4. Review your policy. Do not wait until you file a claim before assessing the extent of your coverage. Insurance IQ study found that 60 percent of respondents do not regularly review their policy - that is, they are until they are filing a claim or renewing their coverage. Twenty-five percent admitted to rarely or never seeking their policies. Through understanding of your policies, you can prepare for any situation and, possibly, saving money by avoiding unnecessary costs.
Another important point to remember: Throughout the year, May you encounter the development of employment, salary, location and / or family dynamics. These factors affect your insurance options and the amount of coverage you need. Whenever your circumstances change, be sure to review your insurance coverage and make the necessary adjustments.
Want to see your comments knowledge batteries against the rest of America? Go to www.insureUonline.org and take assurance tests to see your comment you are warned.
About the Survey
The NAIC conducted a study of insurance-IQ 4-14 December 2008, highlighting consumer concerns and questions of Misinformation and insurance to discover the myths and highlight the financial impact and emotional bad decisions. IQ assurance was based on a questionnaire of 10 questions on various types of insurance. Participants received a note on the number of questions answered correctly. The sample included participants from a nationally representative sample of 1,000 U.S. adults aged 18 years and older with a margin of error of + / - 3.1 per cent in 95 out of 100 cases.
About the NAIC
Established in 1871, the National Association of Insurance Commissioners (NAIC) is a voluntary organization of chief insurance regulatory officials of the 50 states, the District of Columbia United States and five territories. The NAIC has three offices: Executive Office, Washington, DC, Headquarters, Kansas City, Mo., and securities valuation office of the New York City. NAIC serves the needs of consumers and industry with an objective to support the state of regulation of car insurance they protect consumers and maintain the financial stability of the insurance market. For more information, visit www.naic.org.
Contact: Katie Wood kathryn.wood @ edelman.com 312-240-2827
SOURCE National Association of Insurance Commissioners
CONTACT: Katie Wood, +1-312-240-2827, kathryn.wood @ edelman.com, for the National Association of Insurance Commissioners
This is an information service of Thomson Business Intelligence Service © 2006. This content is only for your personal use, subject to the terms and conditions. No redistribution allowed.
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