Geico Assessment Test Insurance Concepts

Question 1

What is subrogation in insurance?

Accepted Answer

The process where an insurer seeks reimbursement from the at-fault party after paying a claim

Answer

A type of coverage

Answer

A policy cancellation

Answer

A premium refund

Question 2

What is an insurance binder?

Accepted Answer

A temporary agreement providing immediate coverage until the formal policy is issued

Answer

A filing cabinet

Answer

A policy cancellation notice

Answer

A premium payment

Question 3

What is an insurance endorsement?

Accepted Answer

A modification or addition to an existing insurance policy that changes its coverage terms

Answer

A celebrity recommendation

Answer

A type of discount

Answer

A claim denial

Question 4

What is the difference between replacement cost and actual cash value?

Accepted Answer

Replacement cost pays to replace the item at current prices; actual cash value deducts depreciation

Answer

They are the same

Answer

Replacement cost is always cheaper

Answer

Actual cash value pays more

Question 5

What is umbrella insurance?

Accepted Answer

Extra liability coverage that extends beyond the limits of your auto or home policy

Answer

Insurance for umbrellas

Answer

A type of flood insurance

Answer

Temporary coverage

Question 6

What is an SR-22?

Accepted Answer

A certificate of financial responsibility filed with the state proving you carry the required minimum auto insurance

Answer

A military vehicle

Answer

A type of coverage

Answer

A discount form