Washington State Insurance Practice Exam

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Prepare for the Washington State Insurance Exam with comprehensive study materials and quizzes. Enhance your understanding of insurance concepts through engaging questions and detailed explanations to excel in your upcoming exam.

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What does a valued policy provide in the event of a total loss?

Payment of the actual depreciated value
Payment of the full policy amount
Reimbursement for damage repairs
Limited financial compensation

The correct answer is: Payment of the full policy amount

A valued policy provides for the full policy amount to be paid in the event of a total loss, ensuring that the policyholder is fully covered and receives the maximum amount of compensation. Option A is incorrect because it only offers the depreciated value, which may be significantly less than the full amount. Option C may only cover damage repairs and not a total loss. Option D states "limited" financial compensation, which may not be sufficient to cover the total loss. Therefore, B is the best option as it provides the most comprehensive coverage in case of a total loss.