Geico Assessment Test Geico Insurance 2 — Questions and Answers
Question 1: GEICO is best known as a direct-to-consumer insurer. What does 'direct-to-consumer' mean for customers?
- Customers buy policies directly from GEICO without a local agent (Correct answer)
- Policies are only sold through independent brokers
- Coverage is bundled with a bank account
- Insurance is sold only at car dealerships
Correct answer: Customers buy policies directly from GEICO without a local agent
GEICO's direct model lets customers purchase online or by phone without going through an agent.
Question 2: A customer's car is declared a 'total loss.' What does this typically mean?
- The cost to repair exceeds the vehicle's actual cash value (Correct answer)
- The car has minor cosmetic damage
- The customer missed a payment
- The car needs an oil change
Correct answer: The cost to repair exceeds the vehicle's actual cash value
A total loss occurs when repair costs surpass the vehicle's actual cash value.
Question 3: Which factor generally has the LEAST impact on an auto insurance premium?
- The color of the vehicle (Correct answer)
- The driver's accident history
- The vehicle's make and model
- The location where the car is garaged
Correct answer: The color of the vehicle
Car color does not affect premiums; driving record, vehicle type, and location do.
Question 4: A policyholder calls upset about a denied claim. What is the best first step for a representative?
- Listen actively and acknowledge the customer's concern (Correct answer)
- Immediately transfer the call
- Tell the customer the decision is final
- End the call to avoid conflict
Correct answer: Listen actively and acknowledge the customer's concern
Active listening and empathy de-escalate the situation before explaining options.
Question 5: What does a 'deductible' represent in an auto policy?
- The amount the policyholder pays before insurance covers the rest (Correct answer)
- The monthly premium amount
- The maximum the insurer will ever pay
- A discount for safe driving
Correct answer: The amount the policyholder pays before insurance covers the rest
A deductible is the out-of-pocket amount paid before coverage kicks in.
Question 6: If a customer's annual premium is $1,200 paid monthly, what is each monthly payment (ignoring fees)?
- $100 (Correct answer)
- $120
- $144
- $1,200
Correct answer: $100
$1,200 divided by 12 months equals $100 per month.
Question 7: Which coverage pays for damage to YOUR car from a collision regardless of fault?
- Collision coverage (Correct answer)
- Liability coverage
- Uninsured motorist coverage
- Medical payments only
Correct answer: Collision coverage
Collision coverage repairs your own vehicle after an accident regardless of fault.
Geico Assessment Test Geico Insurance 2
GEICO is best known as a direct-to-consumer insurer.
What does 'direct-to-consumer' mean for customers?