Insurance Concepts Flashcards
6 cards from real Geico Assessment Test practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Insurance Concepts flashcards as text
What is a declarations page?
Answer: The page of an insurance policy summarizing key information including coverage, limits, deductibles, and premiums
The declarations page (dec page) is the summary page of a policy containing all critical information at a glance: who, what, when, how much.
What does 'exclusion' mean in an insurance policy?
Answer: A specific condition, event, or circumstance that the policy does not cover
Exclusions define what the policy will not pay for. Common exclusions include intentional acts, wear and tear, and war.
What is a grace period in insurance?
Answer: A time window after the premium due date during which the policy remains in force even if payment has not been received
Grace periods (typically 10-30 days) prevent immediate policy cancellation for late payment, giving policyholders time to make their payment.
What is the principle of indemnity?
Answer: Insurance should restore the insured to the same financial position as before the loss — no better, no worse
The principle of indemnity means insurance compensates for actual loss but does not allow the insured to profit from a claim.
What is PIP (Personal Injury Protection)?
Answer: Coverage that pays medical expenses and lost wages for you and passengers regardless of fault
PIP (no-fault insurance) covers medical costs, lost wages, and other expenses for you and your passengers regardless of who caused the accident.
What is gap insurance?
Answer: Coverage that pays the difference between what you owe on a vehicle loan and the vehicle's actual cash value if totaled
If your car is totaled and you owe more than it is worth, gap insurance covers the 'gap' between the ACV payout and your loan balance.