"Consumers today are being forced to make difficult decisions about their insurance coverage --decisions that could have a very profound impact on their financial future," said NAIC Chief Executive Officer Therese M. (Terri) Vaughan. "At the same time, they are being overwhelmed with new and sometimes conflicting information about changes to our nation's health care policies. By doing their homework and brushing up on the facts, they can improve their Insurance IQ, which will ultimately enable them to make the best decisions for themselves and their families."

Key findings related to knowledge of health care and insurance coverage:

• More than half (55 percent) of all Americans do not understand what a pre-existing condition is, which is critical when selecting health care coverage. A pre-existing condition is any health problem that existed before someone applies for a health insurance policy or enrolled in a new health plan.
• Forty percent do not know the age (65 years of age) at which most people become eligible for Medicare.
• More than half of Americans (53 percent) think that they can only make changes to their group health insurance coverage during the open enrollment period provided by their employer, and 16 percent admit they have no idea when changes can be made. In actuality, certain exceptions apply for new employees or employees with life-changing events such as pregnancies or marriage.

About the Survey

The NAIC conducted the Insurance IQ study March 2-12, 2010 to highlight consumer concerns and questions; uncover misinformation and insurance myths; and underscore the financial and emotional impact of poor decisions. The Insurance Intelligence Quotient was based on a 10-question quiz on different types of insurance. Participants were given a grade based on the number of questions answered correctly. The participant sample included a nationally representative sample of 1,000 American adults ages 18 and older with a margin of error +/- 3.1 percent in 95 out of 100 cases.