WGU C702 OA FINAL EXAM LATEST VERSION REAL
EXAM QUESTIONS AND CORRECT ANSWERS / WGU
C702 EXAM 200 EXAM QUESTIONS AND ANSWERS |
VERIFIED ANSWERS||BRAND NEW VERSION!!
2025/2026
The Florida Surplus Service Lines Office (FSLSO) was created to - Answer-oversee
the surplus lines industry in the state
Which of the following is NOT a required qualification for a General Lines Agent: -
Answer-Seeking the license only to write controlled business
The Department of Financial Services performs the following, EXCEPT: - Answer-
Pays insurance claims
Once license, you have how long to obtain an appointment? - Answer-48 months
Which of the following is NOT a duty of the Office of Insurance Regulation? -
Answer-Submit rate filings and underwriting rules for approval
Which one of the following statements is correct? - Answer-Contractors must
usually provide evidence of liability insurance before a construction contract is
granted.
,From a risk management viewpoint, insurance is used to - Answer-Transfer the
cost of losses.
Liability coverage for loss exposures arising from a business organization's
premises and operations, its products, or its completed work is typically provided
by - Answer-Commercial general liability insurance.
Which one of the following statements is correct regarding the benefits provided
by insurance? - Answer-Insurance helps reduce the financial burden to society by
compensating accident victims.
Insurance is not the only risk management transfer technique. When
circumstances are appropriate, transfer can be accomplished through - Answer-
Noninsurance transfer techniques.
Oscar's custom-built vehicle looks like a sausage sandwich on wheels. He plans to
drive it to special events at schools around the country where it will serve as a
mobile billboard to promote his product. Oscar is surprised to learn that insurers
are reluctant to insure his vehicle because it fails to meet one of the ideal
characteristics of an insurable risk. Which characteristic is Oscar's vehicle least
likely to meet? - Answer-Large number of similar exposure units
Liability coverage to individuals and families for bodily injury and property damage
arising from the insured's personal premises or activities is typically provided by -
Answer-Personal liability insurance.
Sally is a recent college graduate who lives in the suburbs and drives to work daily
in the city. She recognizes that owning a car creates both property damage and
,liability exposures for her and at the same time she has the burden of student
loans. For someone in Sally's circumstances the most practical risk management
technique for dealing with her auto-related loss exposures is - Answer-Risk
transfer.
Joe has a Personal Auto Policy with Liability of 25/50/25. He hits a car with four (4)
occupants from Minnesota, all of whom are hurt. They all sue. The first sues for
$20,000; the second sues for $35,000; the third sues for $22,000; the fourth sues
for $18,000. The car Joe hit has $8,000 in damage. The company spends $20,000
on a law firm defense. Ignoring any PIP or Med Pay, what is the total cost to the
company for Joe's claim? - Answer-$78,000
Which statement is true concerning auto Physical Damage coverage in a Personal
Auto Policy? - Answer-It can cover both an owned and nonowned auto
A Florida insured has a Personal Auto Policy providing PIP coverage with a $1,000
deductible. The insured is injured in his vehicle and sustains $15,000 in medical
bills. How much will his policy pay under PIP? - Answer-$10,000
Joe has a Personal Auto Policy with two cars and UM limits of 25/50 stacked. He
also has basic PIP and $1,000 Med Pay. He is involved in an accident where a hit
and run driver runs into his car. He has $42,000 in medical bills. How much would
his UM pay? - Answer-$31,000
Joe has a Personal Auto Policy with one car with liability of 10/20/10, basic PIP,
10/20 UM and no Med Pay. His Florida neighbor has an identical policy on her car.
, Joe is driving her car, loses control, and hits a tree. Joe is hurt with $15,000 in
medical bills. What is the maximum Joe can collect from UM from all sources from
this accident? - Answer-$0
One of the costs of insurance is said to be opportunity costs. This means that if
capital and labor were not being used in the insurance business, they could be
used elsewhere and making other productive contributions to - Answer-Society
Retention is often used in combination with insurance as a way of treating loss
exposures. One of the major downsides of individuals using retention alone is -
Answer-The potential for financial ruin.
The process of restoring an individual or organization to a pre-loss financial
condition is the process of - Answer-Indemnification
Sometimes the existence of insurance encourages losses. The result of this
phenomenon is that it - Answer-Increases the total cost of insurance
A small business owner concerned about something happening and not being
able to work or earn a living for an extended period of time due to an accident
should purchase - Answer-Disability insurance.
EXAM QUESTIONS AND CORRECT ANSWERS / WGU
C702 EXAM 200 EXAM QUESTIONS AND ANSWERS |
VERIFIED ANSWERS||BRAND NEW VERSION!!
2025/2026
The Florida Surplus Service Lines Office (FSLSO) was created to - Answer-oversee
the surplus lines industry in the state
Which of the following is NOT a required qualification for a General Lines Agent: -
Answer-Seeking the license only to write controlled business
The Department of Financial Services performs the following, EXCEPT: - Answer-
Pays insurance claims
Once license, you have how long to obtain an appointment? - Answer-48 months
Which of the following is NOT a duty of the Office of Insurance Regulation? -
Answer-Submit rate filings and underwriting rules for approval
Which one of the following statements is correct? - Answer-Contractors must
usually provide evidence of liability insurance before a construction contract is
granted.
,From a risk management viewpoint, insurance is used to - Answer-Transfer the
cost of losses.
Liability coverage for loss exposures arising from a business organization's
premises and operations, its products, or its completed work is typically provided
by - Answer-Commercial general liability insurance.
Which one of the following statements is correct regarding the benefits provided
by insurance? - Answer-Insurance helps reduce the financial burden to society by
compensating accident victims.
Insurance is not the only risk management transfer technique. When
circumstances are appropriate, transfer can be accomplished through - Answer-
Noninsurance transfer techniques.
Oscar's custom-built vehicle looks like a sausage sandwich on wheels. He plans to
drive it to special events at schools around the country where it will serve as a
mobile billboard to promote his product. Oscar is surprised to learn that insurers
are reluctant to insure his vehicle because it fails to meet one of the ideal
characteristics of an insurable risk. Which characteristic is Oscar's vehicle least
likely to meet? - Answer-Large number of similar exposure units
Liability coverage to individuals and families for bodily injury and property damage
arising from the insured's personal premises or activities is typically provided by -
Answer-Personal liability insurance.
Sally is a recent college graduate who lives in the suburbs and drives to work daily
in the city. She recognizes that owning a car creates both property damage and
,liability exposures for her and at the same time she has the burden of student
loans. For someone in Sally's circumstances the most practical risk management
technique for dealing with her auto-related loss exposures is - Answer-Risk
transfer.
Joe has a Personal Auto Policy with Liability of 25/50/25. He hits a car with four (4)
occupants from Minnesota, all of whom are hurt. They all sue. The first sues for
$20,000; the second sues for $35,000; the third sues for $22,000; the fourth sues
for $18,000. The car Joe hit has $8,000 in damage. The company spends $20,000
on a law firm defense. Ignoring any PIP or Med Pay, what is the total cost to the
company for Joe's claim? - Answer-$78,000
Which statement is true concerning auto Physical Damage coverage in a Personal
Auto Policy? - Answer-It can cover both an owned and nonowned auto
A Florida insured has a Personal Auto Policy providing PIP coverage with a $1,000
deductible. The insured is injured in his vehicle and sustains $15,000 in medical
bills. How much will his policy pay under PIP? - Answer-$10,000
Joe has a Personal Auto Policy with two cars and UM limits of 25/50 stacked. He
also has basic PIP and $1,000 Med Pay. He is involved in an accident where a hit
and run driver runs into his car. He has $42,000 in medical bills. How much would
his UM pay? - Answer-$31,000
Joe has a Personal Auto Policy with one car with liability of 10/20/10, basic PIP,
10/20 UM and no Med Pay. His Florida neighbor has an identical policy on her car.
, Joe is driving her car, loses control, and hits a tree. Joe is hurt with $15,000 in
medical bills. What is the maximum Joe can collect from UM from all sources from
this accident? - Answer-$0
One of the costs of insurance is said to be opportunity costs. This means that if
capital and labor were not being used in the insurance business, they could be
used elsewhere and making other productive contributions to - Answer-Society
Retention is often used in combination with insurance as a way of treating loss
exposures. One of the major downsides of individuals using retention alone is -
Answer-The potential for financial ruin.
The process of restoring an individual or organization to a pre-loss financial
condition is the process of - Answer-Indemnification
Sometimes the existence of insurance encourages losses. The result of this
phenomenon is that it - Answer-Increases the total cost of insurance
A small business owner concerned about something happening and not being
able to work or earn a living for an extended period of time due to an accident
should purchase - Answer-Disability insurance.
