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Insurance

Why does Auctiva charge 3.35 for insurance when the total was only 9.99?
This has happened several times to me. I checked my settings and it says 1.65. I would be better off to purchase insurance for them at the post office.
Also on my Shipping Insurance and Settings page it says that I have earned 15.45 in additional revenue by using Activia Shipping Insurance. What does that mean?
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