Geico Assessment Test Geico Assessment Test Verbal Reasoning 1 — Questions and Answers
Question 1: A Geico policy document states: 'Coverage applies unless the insured vehicle is used for commercial purposes without endorsement.' What does this mean for a driver who uses their personal car to deliver food on weekends?
- Coverage is fully valid since weekends are not business days
- Coverage may be denied because the vehicle is used for commercial purposes without an endorsement (Correct answer)
- Coverage applies only if the driver notifies Geico after each delivery
- Coverage is automatically extended to all part-time commercial activities
Correct answer: Coverage may be denied because the vehicle is used for commercial purposes without an endorsement
The clause explicitly excludes commercial use without an endorsement, so food delivery — a commercial activity — could void coverage.
Question 2: Read the following sentence: 'Policyholders who fail to disclose prior accidents may have their claims denied on the basis of material misrepresentation.' What is the key legal concept described?
- Subrogation
- Material misrepresentation (Correct answer)
- Indemnification
- Comparative negligence
Correct answer: Material misrepresentation
Material misrepresentation means a policyholder withheld or falsified facts that would have affected the insurer's decision to issue or price a policy.
Question 3: Which word is closest in meaning to 'liable' as used in insurance contexts?
- Exempt
- Responsible (Correct answer)
- Reimbursed
- Insured
Correct answer: Responsible
In insurance and legal language, 'liable' means legally responsible for damages or obligations.
Question 4: A Geico notice reads: 'Your premium has been recalculated due to an adverse driving record.' What does 'adverse' most likely mean here?
- Improved
- Unfavorable (Correct answer)
- Extended
- Verified
Correct answer: Unfavorable
'Adverse' means unfavorable or harmful, so an adverse driving record includes tickets, accidents, or violations that increase risk.
Question 5: The following passage appears in a Geico FAQ: 'Comprehensive coverage protects against losses not caused by a collision, such as theft, vandalism, or weather damage.' Which event would NOT be covered under comprehensive?
- Hail denting the roof of your car
- Your car being stolen from a parking lot
- A rear-end collision at a stop sign (Correct answer)
- A tree branch falling on your windshield
Correct answer: A rear-end collision at a stop sign
A rear-end collision is a collision event, which falls under collision coverage, not comprehensive coverage.
Question 6: In an insurance document, 'subrogation' is described as: 'The right of the insurer to pursue a third party that caused an insurance loss to the insured.' What best paraphrases this definition?
- The insured's right to switch insurers after a claim
- The insurer's right to seek reimbursement from the party responsible for a loss (Correct answer)
- The insurer's obligation to pay claims within 30 days
- The policyholder's right to dispute a denied claim
Correct answer: The insurer's right to seek reimbursement from the party responsible for a loss
Subrogation allows an insurer to recover money paid on a claim from the at-fault third party.
Geico Assessment Test Geico Assessment Test Verbal Reasoning 1
A Geico policy document states: 'Coverage applies unless the insured vehicle is used for commercial purposes without endorsement.' What does this mean for a driver who uses their personal car to deliver food on weekends?