Washington State Insurance Practice Exam

Disable ads (and more) with a membership for a one time $4.99 payment

Prepare for the Washington State Insurance Exam. Study with interactive flashcards and multiple-choice questions. Each question offers hints and explanations to help you succeed.

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.