Washington State Insurance Practice Exam 2025 – Comprehensive All-in-One Guide to Exam Success!

Question: 1 / 400

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

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.

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Reimbursement for damage repairs

Limited financial compensation

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