USAA can attest to the fact that insurance is getting expensive these days. The firm has opted to drop default insurance on its money market fund in light of rate hikes brought on by the Sept. 11 terrorist attacks.

Insurance rates had been rising since the firm first bought default insurance last year, but spiked after Sept. 11, said USAA spokesman Tom Honeycutt. Faced with a high-cost of renewal, USAA decided to pass on the insurance and changed its prospectus accordingly.

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