Geico Assessment Test Insurance Concepts 2

Question 1

What is a declarations page?

Accepted Answer

The page of an insurance policy summarizing key information including coverage, limits, deductibles, and premiums

Answer

The declarations page (dec page) is the summary page of a policy containing all critical information at a glance: who, what, when, how much.

Question 2

What does 'exclusion' mean in an insurance policy?

Accepted Answer

A specific condition, event, or circumstance that the policy does not cover

Answer

Exclusions define what the policy will not pay for. Common exclusions include intentional acts, wear and tear, and war.

Question 3

What is a grace period in insurance?

Accepted Answer

A time window after the premium due date during which the policy remains in force even if payment has not been received

Answer

Grace periods (typically 10-30 days) prevent immediate policy cancellation for late payment, giving policyholders time to make their payment.

Question 4

What is the principle of indemnity?

Accepted Answer

Insurance should restore the insured to the same financial position as before the loss — no better, no worse

Answer

The principle of indemnity means insurance compensates for actual loss but does not allow the insured to profit from a claim.

Question 5

What is PIP (Personal Injury Protection)?

Accepted Answer

Coverage that pays medical expenses and lost wages for you and passengers regardless of fault

Answer

PIP (no-fault insurance) covers medical costs, lost wages, and other expenses for you and your passengers regardless of who caused the accident.

Geico Assessment Test Practice Test