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Hello Insurance Help please

I am confused on the Auctiva insurance.
It seems to me when I have someone that bought insurance I get a discount, correct? The buyer still pays for the full amount.
What I'm confused about is I am getting a bill from Auctiva for the lesser amount and I am still paying when I check insurance with paypal.
Am I not supposed to check the box on Paypal for the 1.65 insurance? If that is the case I need to check mark something somewhere that I don't want auctiva insurance
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