Washington State Insurance Practice Exam

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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.

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What does the statute of limitations establish?

Amount of insurance required
Limits on time for recovery for certain injuries or damages
Replacement cost value
Types of perils covered

The correct answer is: Limits on time for recovery for certain injuries or damages

The statute of limitations refers to the time limit within which legal action can be taken for a certain injury or damage. This means that if a person wishes to file a lawsuit for a specific injury or damage, they must do so within the time frame established by the statute of limitations. The other options listed are incorrect because they all refer to different aspects of insurance policies, and the statute of limitations is not directly involved in determining these factors.