Geico Assessment Test Numerical Reasoning — Questions and Answers
Question 1: If an auto insurance premium is $1,200 annually and the customer pays monthly, what is each payment?
- $100 (Correct answer)
- $120
- $150
- $200
Correct answer: $100
$1,200 ÷ 12 months = $100 per month. Note: some companies add a monthly billing fee.
Question 2: A customer has a $500 deductible and $3,200 in covered damages. How much will insurance pay?
- $3,200
- $2,700 (Correct answer)
- $3,700
- $500
Correct answer: $2,700
Insurance pays the covered damages minus the deductible: $3,200 - $500 = $2,700.
Question 3: If a good student discount reduces a premium by 15%, and the original premium is $2,000, what is the new premium?
- $1,500
- $1,700 (Correct answer)
- $1,850
- $300
Correct answer: $1,700
15% of $2,000 = $300 discount. New premium = $2,000 - $300 = $1,700.
Question 4: A customer's premium increased 8% from last year. If they now pay $1,620, what was last year's premium?
- $1,490.40
- $1,500 (Correct answer)
- $1,540
- $1,550
Correct answer: $1,500
If 1.08 × last year's premium = $1,620, then last year's premium = $1,620 ÷ 1.08 = $1,500.
Question 5: An agent processes 12 claims per hour. How many claims can they process in a 7.5-hour shift?
- 75
- 84
- 90 (Correct answer)
- 96
Correct answer: 90
12 claims/hour × 7.5 hours = 90 claims per shift.
Question 6: What is the coverage ratio if a policy pays 80% of medical expenses after deductible, and the bill is $5,000 with a $1,000 deductible?
- $3,200 (Correct answer)
- $4,000
- $3,000
- $4,200
Correct answer: $3,200
After deductible: $5,000 - $1,000 = $4,000. Insurance pays 80%: $4,000 × 0.80 = $3,200.
Geico Assessment Test Numerical Reasoning
If an auto insurance premium is $1,200 annually and the customer pays monthly, what is each payment?