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What’s your Insurance IQ? – Be careful, we might offer you a job!

August 19, 2014

With the advent of on-line shopping, huge insurance call centers and a personal insurance marketplace that has never been more competitive than it is today, it’s more important than ever to have a basic understanding of what the insurance product is all about because knowledge is power. I thought it might be fun to set up a basic insurance IQ test to test your insurance knowledge.

So let’s begin!


 

Human brain

1. Your cherished pet dog, Lester, bites a young girl selling Girl Scout Cookies.

A. It is covered under your home insurance policy

B. It is covered under your auto policy

C. There is no coverage for dog bites

D. Lester gets a special treat for chasing away a pestering Girl ScouT

2. An Umbrella policy

A. Is a policy that adds more property coverage to your home insurance policy.

B. Is a policy that adds additional liability coverage to your Auto Insurance policy.

C. Is a policy that adds additional liability coverage to your Auto and Home policy.

D. Is a policy that protects you in a severe rain storm

3. In Connecticut, the minimum liability limit required on an auto policy per person is:

A. $10,000

B. $50,000

C. $20,000

D. There is no state minimum liability limit

4. “Gap” coverage is:

A. Designed to cover the difference between the book value of your car and the amount of the amount of your loan if the balance of the loan owed is higher than  the book value.

B. Designed to cover the difference between the book value of your car and the cost of replacing the car.

C. Designed to protect you from paying full price on a new pair of jeans.

D. Designed to cover your medical bills after forgetting to “mind the gap” while exiting a subway car.

5. Flood Insurance can only be purchased by those living in a dangerous flood zone.

A. True

B. False

6. Special coverage, called a “Schedule” (aka rider) should be added to a home insurance policy for:

A. A very expensive ring

B. A very expensive piece of artworkDiamond Ring wedding gift isolated

C. A very expensive new Viking stove

D. A&B

E. B&C

F. None of the above

7. Every insurance company has a different profit margin. With that in mind, and before investment, a profitable Auto Insurance Company typically will make this amount for each dollar of premium collected. Pick the number that you feel comes the closest to the average:

A. 28 cents

B. 6 cents

C. 47 cents

D. 62 cents

8. Pick the item(s) below that would not be covered on a typical home insurance policy.

A. A hole in the roof from a tree branch

B. A lightning strikePeeling paint background

C. A rotted out gutter

D. Smoke damage from a furnace puff back

E. Peeling paint

F. B&D

G. C&E

H. All of the above is covered

9. Your dream car that has been your baby is damaged in an accident. You must pick an auto body shop that is on your insurance company’s preferred list.

A. True

B. False

10. Buying insurance from an agent is almost always more expensive than buying direct.

A. True

B. False

11. Your next door neighbor’s insurance company is cheaper than yours. Switching your insurance to your neighbor’s insurance company will likely be:

A. Cheaper than your current company

B. More expensive than your current company

C. About same amount as your current company

D. Any of the above

12. When comparing insurance companies, if company “A” has the exact same coverage as company “B” than the most important factor is the price.

A. True

B. False

 

That wraps up today’s insurance IQ quiz. See the answers below. If you got all twelve correct, we have a job opening for you! If you got 10 or 11 answers correct, you are a prodigy or a total nerd, take your pick! If you were able to get 8 or 9 answers correct, you are a well-informed consumer! If you got 6 or 7 correct, you are an “Average Joe” or “Average Jane” whichever applies. If you got 5 or less correct, I think that we need to talk!

 

Chris Garlasco, Owner & Managing Partner - Founders Insurance Group

 

 

Have a great day!

Chris Garlasco

Owner & Managing Partner – Founders Insurance Group

 

founders answers.png_Page_1

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