International Baccalaureate (IB) Practice Exam

Duplicate coverage, or any extra insurance on top of your existing insurance, is not necessary. True or False?

1. True

2. False

3. It depends on the situation.

4. Only for certain types of insurance.

The correct answer is: True

The statement that duplicate coverage, or any extra insurance on top of your existing insurance, is not necessary is accurate because having multiple insurance policies that cover the same risks can lead to unnecessary expenses without providing any additional benefit in terms of coverage. Insurance policies are designed to provide protection against specific risks, and once those risks are adequately covered by an existing policy, obtaining extra coverage generally does not improve the level of protection. In many cases, if an individual has comprehensive and sufficient coverage through a primary insurance policy, there is no need to spend additional money on duplicate coverage. It's essential to evaluate existing policies thoroughly to ensure adequate protection without redundancy. While there may be unique situations where additional coverage is warranted—such as during transitions or specific high-risk scenarios—the general principle that duplicate coverage is unnecessary holds true for the majority of circumstances.