Geico Assessment Test Geico Assessment Test Verbal Reasoning 2 — Questions and Answers
Question 1: Choose the word that best completes the sentence: 'The adjuster carefully _______ the damage before approving the repair estimate.'
- delegated
- assessed (Correct answer)
- deferred
- terminated
Correct answer: assessed
An adjuster's primary job is to assess (evaluate) damage to determine the appropriate payout.
Question 2: A Geico email states: 'Your renewal quote reflects a 12% surcharge due to a recent at-fault accident.' What is a surcharge in this context?
- A discount applied for safe driving
- An additional charge added to the premium as a penalty (Correct answer)
- A refund issued after a claim
- A fee for changing your coverage level
Correct answer: An additional charge added to the premium as a penalty
A surcharge is an extra amount added to an insurance premium, typically because of increased risk such as an at-fault accident.
Question 3: Which sentence uses the word 'deductible' correctly?
- The deductible is the maximum amount the insurer will pay on a claim.
- The deductible is the amount the policyholder must pay out of pocket before insurance coverage kicks in. (Correct answer)
- The deductible is the monthly payment made to keep a policy active.
- The deductible is a penalty charged when a policy is cancelled early.
Correct answer: The deductible is the amount the policyholder must pay out of pocket before insurance coverage kicks in.
A deductible is the portion of a claim the insured must pay before the insurer covers the rest.
Question 4: A policy exclusion clause reads: 'This policy does not cover intentional acts by the insured.' Which situation would fall under this exclusion?
- A driver accidentally rear-ends another car
- A driver deliberately rams another vehicle during an argument (Correct answer)
- A car is damaged in a hailstorm
- A passenger is injured when the driver runs a red light by mistake
Correct answer: A driver deliberately rams another vehicle during an argument
Deliberately ramming another vehicle is an intentional act, which exclusion clauses are designed to exclude from coverage.
Question 5: What does it mean when a Geico letter states your policy has been 'rescinded'?
- Your policy has been renewed for another term
- Your policy has been cancelled and treated as if it never existed (Correct answer)
- Your coverage has been upgraded to a higher tier
- Your premium has been reduced due to a good driving record
Correct answer: Your policy has been cancelled and treated as if it never existed
Rescission voids a policy retroactively, often because of fraud or misrepresentation at the time of application.
Question 6: In a Geico policy summary, 'endorsement' is listed as an add-on. What does an endorsement do?
- It cancels a portion of the existing coverage
- It modifies or adds coverage to a standard policy (Correct answer)
- It replaces the entire policy with a new one
- It transfers the policy to another person
Correct answer: It modifies or adds coverage to a standard policy
An endorsement (or rider) is a written amendment that changes or expands the terms of a base insurance policy.
Geico Assessment Test Geico Assessment Test Verbal Reasoning 2
Choose the word that best completes the sentence: 'The adjuster carefully _______ the damage before approving the repair estimate.'