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Insurance. What are the policies??

I am not certain I want to continue on with your confusing glitch-filled service until I get some service. I don't see any place on the site explaining exactly how the insurance thing works.
I have read a message regarding insurance woes that sounded as if the person was being billed nearly six dollars by you for insurance plus shipping already paid to the USPS. Please explain HOW INSURANCE WORKS C-L-E-A-R-L-Y step by step, so I can repeat it to some one else and know what I am talking about.
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