GEICO Employment Assessment Test — Questions and Answers

Question 1: 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?

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
Hail denting the roof of your car

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 2: Which of the following is NOT a typical type of coverage offered in an auto insurance policy?

Mortgage coverage (Correct answer)
Liability coverage
Comprehensive coverage
Collision coverage

Correct answer: Mortgage coverage

Mortgage coverage relates to home loans, not auto insurance policies.

Question 3: What does 'premium' mean in insurance?

A type of deductible
The best coverage available
The amount paid by the policyholder for insurance coverage, typically monthly or annually (Correct answer)
The maximum payout amount

Correct answer: The amount paid by the policyholder for insurance coverage, typically monthly or annually

The premium is the cost of insurance, paid regularly to maintain coverage. It is determined by factors like risk level, coverage amount, and deductible.

Question 4: A Geico notice reads: 'Your premium has been recalculated due to an adverse driving record.' What does 'adverse' most likely mean here?

Extended
Improved
Verified
Unfavorable (Correct answer)

Correct answer: Unfavorable

'Adverse' means unfavorable or harmful, so an adverse driving record includes tickets, accidents, or violations that increase risk.

Question 5: How should you handle a customer who speaks limited English?

Rush through the call
Speak louder
Use simple language, speak clearly at a normal pace, and offer translation services if available (Correct answer)
Transfer them to another agent

Correct answer: Use simple language, speak clearly at a normal pace, and offer translation services if available

Using simple language and offering translation services ensures the customer understands their coverage and options, regardless of language barriers.

Question 6: What is the difference between liability and collision coverage?

They are the same
Liability is optional; collision is mandatory
Liability covers damage you cause to others; collision covers damage to your own vehicle from accidents (Correct answer)
Collision is cheaper

Correct answer: Liability covers damage you cause to others; collision covers damage to your own vehicle from accidents

Liability pays for injuries and property damage you cause to others. Collision pays for damage to your own vehicle regardless of fault.

Question 7: During a busy period, a supervisor asks you to skip the verification steps on a batch of claims to meet a deadline. What is the BEST response?

Follow the instructions since your supervisor has authority
Skip verification only on smaller claims and verify large ones
Express your concern that skipping verification could lead to errors or fraud, and ask for guidance on how to proceed properly (Correct answer)
Refuse to work until the deadline is extended

Correct answer: Express your concern that skipping verification could lead to errors or fraud, and ask for guidance on how to proceed properly

Raising a legitimate concern about process integrity while still seeking guidance shows professional judgment and ethical responsibility.

Question 8: What is uninsured motorist coverage?

Coverage that protects you if you are hit by a driver who has no insurance (Correct answer)
Coverage that is not required
Coverage for rental cars only
Coverage for when you do not have insurance

Correct answer: Coverage that protects you if you are hit by a driver who has no insurance

Uninsured motorist coverage pays for your injuries and damages when the at-fault driver has no insurance or cannot be identified (hit-and-run).

Question 9: If a customer's claim history shows 2 claims in 5 years, what is their claim frequency rate?

1 claim per year
0.2 claims per year
0.4 claims per year (Correct answer)
2.5 claims per year

Correct answer: 0.4 claims per year

Claim frequency = 2 claims ÷ 5 years = 0.4 claims per year.

Question 10: What is a grace period in insurance?

A discount period
A church ceremony
A time window after the premium due date during which the policy remains in force even if payment has not been received (Correct answer)
A claim processing time

Correct 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.

Question 11: A customer wants to cancel their policy. What is the recommended approach?

Add extra charges to discourage cancellation
Refuse to cancel
Understand their reasons, explore solutions to their concerns, and if they still want to cancel, process it professionally (Correct answer)
Process the cancellation immediately

Correct answer: Understand their reasons, explore solutions to their concerns, and if they still want to cancel, process it professionally

Understanding the reason may reveal a solvable problem (rate, coverage). If cancellation is their decision, handling it professionally maintains goodwill.

Question 12: A fleet discount of 10% applies when insuring 3+ vehicles. If each vehicle costs $800/year, what is the total for 4 vehicles with the discount?

$3,600
$2,880 (Correct answer)
$2,400
$3,200

Correct answer: $2,880

4 vehicles × $800 = $3,200. With 10% discount: $3,200 × 0.90 = $2,880.

Question 13: 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 insurer's obligation to pay claims within 30 days
The policyholder's right to dispute a denied claim
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)

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.

Question 14: Which sentence uses the word 'deductible' correctly?

The deductible is the monthly payment made to keep a policy active.
The deductible is a penalty charged when a policy is cancelled early.
The deductible is the maximum amount the insurer will pay on a claim.
The deductible is the amount the policyholder must pay out of pocket before insurance coverage kicks in. (Correct answer)

Correct answer: The deductible is the amount the policyholder must pay out of pocket before insurance coverage kicks in.

A deductible is the portion of a claim the insured must pay before the insurer covers the rest.

Question 15: Another thing you may have noticed about the Geico gecko is that he speaks with a British accent. Is England part of a gecko's natural habitat?

Yes
No (Correct answer)

Correct answer: No

Geckos are primarily found in warm climates around the world, including tropical and subtropical regions of Asia, Africa, and the Americas. England, with its temperate climate, is not a natural habitat for geckos, making the Gecko's British accent an intentional and humorous brand choice.

Question 16: A customer insists their car damage was caused by a covered peril, but photos show evidence it was caused by normal wear and tear. How should you handle this?

Deny the claim without any explanation
Explain clearly why the damage appears to be wear and tear, which is not a covered peril, and offer to escalate for a second opinion (Correct answer)
Approve the claim to avoid conflict with the customer
Ask the customer to provide their own photos to contradict the evidence

Correct answer: Explain clearly why the damage appears to be wear and tear, which is not a covered peril, and offer to escalate for a second opinion

Transparent communication explaining the basis for a decision, with an offer to escalate, is the professional and fair approach.

Question 17: What factors typically affect auto insurance premiums?

Only your zip code
Driving record, age, location, vehicle type, coverage levels, credit score, and mileage (Correct answer)
Only the car model
Only your age

Correct answer: Driving record, age, location, vehicle type, coverage levels, credit score, and mileage

Insurance premiums are calculated using multiple risk factors including your driving history, demographics, where you live, what you drive, and how much coverage you want.

Question 18: A Geico email states: 'Your renewal quote reflects a 12% surcharge due to a recent at-fault accident.' What is a surcharge in this context?

A fee for changing your coverage level
A discount applied for safe driving
A refund issued after a claim
An additional charge added to the premium as a penalty (Correct answer)

Correct answer: An additional charge added to the premium as a penalty

A surcharge is an extra amount added to an insurance premium, typically because of increased risk such as an at-fault accident.

Question 19: A customer wants to add a teenage driver to their policy. What information is most relevant?

The parent's driving record
The teenager's favorite color
The teenager's age, driving record, grades (for good student discount), and vehicle they will drive (Correct answer)
Only the teenager's name

Correct answer: The teenager's age, driving record, grades (for good student discount), and vehicle they will drive

Rating a teenage driver requires specific information about their driving experience, any available discounts (good student, driver training), and the vehicle they will use.

Question 20: A GEICO policy requires all forms to include a 9-digit policy ID. Which of the following does NOT meet this requirement?

927364810
739284751
482917364
48291736 (Correct answer)

Correct answer: 48291736

'48291736' contains only 8 digits, which does not meet the required 9-digit policy ID format.

Question 21: If switching from a $250 to a $500 deductible saves $120/year on premiums, how long to recoup the extra $250 risk?

About 5 years
About 1 year
About 2 years (Correct answer)
About 3 years

Correct answer: About 2 years

Extra risk = $500 - $250 = $250. Annual savings = $120. Time to recoup = $250 ÷ $120 ≈ 2.08 years.

Question 22: 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 automatically extended to all part-time commercial activities
Coverage applies only if the driver notifies Geico after each delivery
Coverage may be denied because the vehicle is used for commercial purposes without an endorsement (Correct answer)
Coverage is fully valid since weekends are not business days

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 23: What is the purpose of continuing education in a profession?

It is only for new professionals
To collect certificates
To increase tuition revenue for schools
To maintain and expand knowledge, meet licensing requirements, and stay competitive in the field (Correct answer)

Correct answer: To maintain and expand knowledge, meet licensing requirements, and stay competitive in the field

Continuing education ensures professionals maintain current knowledge, meet regulatory requirements, and develop new skills for career advancement.

Question 24: What is the name of GEICO's well-known animated mascot?

The GEICO Gecko (Correct answer)
The Caveman
Maxwell the Pig
Flo

Correct answer: The GEICO Gecko

The GEICO Gecko is the company's signature animated mascot, introduced in 1999.

Question 25: A customer's premium increased 8% from last year. If they now pay $1,620, what was last year's premium?

$1,550
$1,490.40
$1,500 (Correct answer)
$1,540

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 26: What is the most important factor for long-term success in this field?

Continuous learning, practice, and adapting to changes in the industry (Correct answer)
Natural talent alone
Knowing the right people
Having expensive equipment

Correct answer: Continuous learning, practice, and adapting to changes in the industry

Success in any professional field requires ongoing education, consistent practice, and the ability to adapt as the industry evolves with new technologies and methods.

Question 27: What is the best approach to staying current in a rapidly evolving field?

Staying current is not necessary
Wait for employer-provided training
Read one book per year
Regularly read industry publications, attend workshops, take courses, and participate in professional communities (Correct answer)

Correct answer: Regularly read industry publications, attend workshops, take courses, and participate in professional communities

Multiple learning channels ensure comprehensive awareness of industry changes, new technologies, and evolving best practices.

Question 28: How should you prioritize when handling multiple customer inquiries simultaneously?

Only handle one at a time, putting others on hold indefinitely
Handle the easiest ones first
Assess urgency: safety-related and time-sensitive issues first, then complex issues, then routine inquiries (Correct answer)
Handle them randomly

Correct answer: Assess urgency: safety-related and time-sensitive issues first, then complex issues, then routine inquiries

Prioritizing by urgency ensures that the most critical situations are addressed first while maintaining service quality for all customers.

Question 29: If an auto insurance premium is $1,200 annually and the customer pays monthly, what is each payment?

$120
$100 (Correct answer)
$200
$150

Correct answer: $100

$1,200 ÷ 12 months = $100 per month. Note: some companies add a monthly billing fee.

Question 30: What is the primary purpose of claims processing in insurance?

To delay payments
To increase company profits
To evaluate and settle policyholder claims fairly and efficiently according to policy terms (Correct answer)
To deny as many claims as possible

Correct answer: To evaluate and settle policyholder claims fairly and efficiently according to policy terms

Claims processing evaluates losses against policy terms to provide fair, timely settlements, which is the core promise of insurance.

Question 31: How should you handle a billing discrepancy reported by a customer?

Tell them to pay and dispute later
Review the account history, identify the discrepancy, explain the charges, and correct any errors (Correct answer)
Transfer to billing without investigating
Dismiss it as a system error

Correct answer: Review the account history, identify the discrepancy, explain the charges, and correct any errors

Investigating the discrepancy thoroughly, explaining what happened, and correcting any errors demonstrates accountability and builds trust.

Question 32: A policy has a per-occurrence limit of $100,000 and an annual aggregate of $300,000. If three claims of $90,000 each occur, how much will insurance pay total?

$90,000
$300,000
$200,000
$270,000 (Correct answer)

Correct answer: $270,000

Each claim ($90,000) is under the per-occurrence limit ($100,000), so all are covered. Total = $270,000, which is under the aggregate ($300,000).

Question 33: Read: 'Geico reserves the right to inspect the vehicle prior to binding coverage.' What does 'binding coverage' refer to?

Restricting the policyholder to one insurer
Increasing the policy premium
Making coverage officially effective (Correct answer)
Cancelling the existing policy

Correct answer: Making coverage officially effective

Binding coverage means the insurer officially activates and commits to the insurance contract.

Question 34: What is a deductible in an insurance policy?

The amount the policyholder pays out of pocket before insurance coverage kicks in (Correct answer)
The maximum the insurer will pay
The premium amount
A discount on the premium

Correct answer: The amount the policyholder pays out of pocket before insurance coverage kicks in

The deductible is the policyholder's share of the loss. A $500 deductible means the policyholder pays the first $500 of a covered loss.

Question 35: What is an insurance binder?

A premium payment
A temporary agreement providing immediate coverage until the formal policy is issued (Correct answer)
A filing cabinet
A policy cancellation notice

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

A binder provides immediate proof of coverage while the full policy is being prepared, typically valid for 30-90 days.

Question 36: How should you handle a situation where you lack expertise in a specific area?

Acknowledge the gap, research or consult with experts, and provide accurate information rather than guessing (Correct answer)
Avoid the topic entirely
Pretend you know the answer
Make up an answer

Correct answer: Acknowledge the gap, research or consult with experts, and provide accurate information rather than guessing

Professional integrity requires honesty about knowledge gaps. Researching or consulting experts ensures accuracy and builds trust.

Question 37: What is gap insurance?

A type of health insurance
Insurance for parking garages
Coverage that pays the difference between what you owe on a vehicle loan and the vehicle's actual cash value if totaled (Correct answer)
Coverage for gaps in fences

Correct 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.

Question 38: A customer cannot access their online account. What troubleshooting steps should you follow?

Tell them to try again later
Create a new account for them
Verify their identity, check account status, reset password if needed, and guide through the login process (Correct answer)
Tell them to call tech support

Correct answer: Verify their identity, check account status, reset password if needed, and guide through the login process

Systematic troubleshooting starts with identity verification, then checks the most common issues (password, account status) before escalating.

Question 39: A passage states: 'Claims submitted after the stipulated reporting period will be considered untimely and may be denied.' What does 'stipulated' mean?

Estimated
Extended upon request
Determined after investigation
Specified or agreed upon in advance (Correct answer)

Correct answer: Specified or agreed upon in advance

Stipulated means explicitly stated or established as a condition or requirement within the policy.

Question 40: Why is data confidentiality important in an insurance role?

It increases premiums
It is optional for representatives
It protects sensitive customer information and maintains trust (Correct answer)
It speeds up call handling

Correct answer: It protects sensitive customer information and maintains trust

Protecting personal and financial data preserves customer trust and meets legal duties.

Question 41: 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?

Indemnification
Material misrepresentation (Correct answer)
Comparative negligence
Subrogation

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 42: What is the correct procedure when a customer provides inconsistent information?

Accept whatever they say
Accuse them of lying
Politely point out the inconsistencies and ask for clarification to ensure accurate records (Correct answer)
Ignore the inconsistencies

Correct answer: Politely point out the inconsistencies and ask for clarification to ensure accurate records

Diplomatic clarification of inconsistencies protects both the customer and the company while maintaining accurate records.

Question 43: What is a multi-policy discount?

A discount for bundling different types of insurance policies (auto + home) with the same company (Correct answer)
A discount for multiple drivers
A discount for paying multiple months at once
A discount for having multiple cars

Correct answer: A discount for bundling different types of insurance policies (auto + home) with the same company

Multi-policy (or bundling) discounts reward customers who carry multiple types of insurance with the same company, such as auto and homeowners.

Question 44: An agent's sales target is 50 policies per month. They sold 42 in the first 3 weeks. What is their completion rate?

92%
42%
100%
84% (Correct answer)

Correct answer: 84%

Completion rate = 42/50 × 100% = 84%. They need 8 more policies in the remaining week.

Question 45: If comprehensive coverage costs $180/year and collision costs $350/year, what is the total for both per month?

$29.17
$53.00
$44.17 (Correct answer)
$530.00

Correct answer: $44.17

Total annual: $180 + $350 = $530. Monthly: $530 ÷ 12 = $44.17 per month.

Question 46: An agent processes 12 claims per hour. How many claims can they process in a 7.5-hour shift?

75
96
84
90 (Correct answer)

Correct answer: 90

12 claims/hour × 7.5 hours = 90 claims per shift.

Question 47: A policy lists bodily injury coverage as $250,000 per person / $500,000 per occurrence. A renewal document shows $250,000 per person / $50,000 per occurrence. What discrepancy exists?

A zero is missing from the per-occurrence limit (Correct answer)
No discrepancy exists
The coverage type has changed
The per-person limit has changed

Correct answer: A zero is missing from the per-occurrence limit

The per-occurrence limit dropped from $500,000 to $50,000 because a '0' was omitted, reducing coverage tenfold.

Question 48: A customer has a $500 deductible and $3,200 in covered damages. How much will insurance pay?

$2,700 (Correct answer)
$500
$3,700
$3,200

Correct answer: $2,700

Insurance pays the covered damages minus the deductible: $3,200 - $500 = $2,700.

Question 49: The Geico gecko is based on an actual species of gecko. Which one is it?

Web-toed gecko
Wonder gecko
House gecko (Correct answer)
Day gecko

Correct answer: House gecko

The GEICO Gecko's design is generally based on the common house gecko (Hemidactylus frenatus), which is a small, nocturnal lizard known for its ability to climb walls and ceilings. This species is widespread globally and fits the general appearance of the animated mascot.

Question 50: 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?

$4,000
$3,200 (Correct answer)
$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.

Question 51: What is umbrella insurance?

Extra liability coverage that extends beyond the limits of your auto or home policy (Correct answer)
Insurance for umbrellas
A type of flood insurance
Temporary coverage

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

Umbrella insurance provides additional liability protection above and beyond what standard policies cover, typically in $1 million increments.

Question 52: How should you handle a customer who is confused about their coverage?

Tell them to read their policy
Read the policy word for word
Break down their coverage into simple, clear explanations using relatable examples (Correct answer)
Admit the policy is confusing and cannot be explained

Correct answer: Break down their coverage into simple, clear explanations using relatable examples

Translating complex insurance language into clear, everyday terms with practical examples helps customers understand what they are paying for and what is covered.

Question 53: A customer is upset about a rate increase. What is the BEST approach?

Transfer them immediately
Offer to cancel their policy
Tell them rates go up for everyone
Empathize, explain the factors affecting rates, and review coverage for potential savings (Correct answer)

Correct answer: Empathize, explain the factors affecting rates, and review coverage for potential savings

Empathy combined with education and proactive savings review addresses the emotion and the practical concern.

Question 54: If you don't own a car, you don't need car insurance.

False (Correct answer)
True

Correct answer: False

Even if you don't own a car, you might still need car insurance, especially if you regularly drive other people's cars, rent cars, or live in a household with other drivers. Non-owner car insurance or being listed on another policy can provide crucial liability coverage in these situations.

Question 55: Choose the word that best completes the sentence: 'The adjuster carefully _______ the damage before approving the repair estimate.'

terminated
delegated
deferred
assessed (Correct answer)

Correct answer: assessed

An adjuster's primary job is to assess (evaluate) damage to determine the appropriate payout.

Question 56: How do you evaluate the quality of your professional work?

Only clients evaluate quality
By measuring against established standards, gathering feedback, tracking outcomes, and comparing to best practices (Correct answer)
Quality does not matter if the work is done
By how fast you complete it

Correct answer: By measuring against established standards, gathering feedback, tracking outcomes, and comparing to best practices

Quality evaluation uses multiple metrics including professional standards, client satisfaction, outcome measurement, and comparison with industry best practices.

Question 57: A system error results in incorrect policy information being sent to a customer. What should you do?

Blame the IT department
Wait for the customer to call and complain
Proactively contact the customer, explain the error, provide correct information, and document the incident (Correct answer)
Hope they do not notice

Correct answer: Proactively contact the customer, explain the error, provide correct information, and document the incident

Proactive communication about errors demonstrates integrity and prevents the customer from making decisions based on incorrect information.

Question 58: A customer believes they were charged incorrectly but becomes rude when you try to explain. After two attempts, they still refuse to listen. What is the BEST next step?

Match their tone to assert authority
Agree with them just to end the call
Politely offer to send a written explanation and schedule a follow-up call when they are ready to discuss (Correct answer)
Hang up and close the account

Correct answer: Politely offer to send a written explanation and schedule a follow-up call when they are ready to discuss

Offering a written summary and a scheduled follow-up de-escalates the call while ensuring the customer receives accurate information.

Question 59: A Geico liability notice reads: 'The insured is indemnified up to the policy limits.' What does 'indemnified' mean?

Compensated or protected against financial loss (Correct answer)
Penalized for making a false claim
Excluded from certain types of coverage
Required to pay a higher deductible

Correct answer: Compensated or protected against financial loss

To indemnify means to compensate someone for harm or loss, restoring them financially to their pre-loss condition.

Question 60: What is data privacy's importance in insurance?

It is not very important
Only IT is responsible for privacy
Insurance handles sensitive personal and financial data requiring strict compliance with privacy laws (Correct answer)
Privacy only matters for online accounts

Correct answer: Insurance handles sensitive personal and financial data requiring strict compliance with privacy laws

Insurance companies collect highly sensitive personal, medical, and financial information. Protecting this data is both a legal obligation and a trust requirement.

Question 61: What should you do if a customer reports a claim involving a potential injury?

Minimize the importance of the injury
Tell them injuries are not covered
Document all details carefully, advise them to seek medical attention, and follow the company's injury claim protocol (Correct answer)
Transfer them to a different department without taking information

Correct answer: Document all details carefully, advise them to seek medical attention, and follow the company's injury claim protocol

Injury claims require careful documentation, immediate medical attention advice, and proper protocol following to protect both the customer and the company.

GEICO Employment Assessment Test

The GEICO Employment Assessment Test is used by GEICO (Government Employees Insurance Company) to evaluate candidates for customer service, claims, sales, and corporate roles. The assessment measures verbal reasoning, numerical reasoning, situational judgment, problem-solving aptitude, and knowledge of insurance concepts. Strong performance helps candidates advance in GEICO's hiring process for entry-level and professional positions.

Questions

60 min

Time Limit

70%

To Pass

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Exam Rules

You can skip questions and return to them later
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No feedback shown until you submit the entire exam
Unanswered questions count as wrong — answer everything
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