Washington State Insurance Practice Exam 2026 – Comprehensive All-in-One Guide to Exam Success!

Question: 1 / 400

What does 'Per occurrence (accident) limit' refer to in an auto policy?

The maximum amount payable for all claims during the policy term

In an auto policy, the 'Per occurrence (accident) limit' refers to the maximum amount that the insurance company will pay for all claims resulting from a single accident during the policy term. This means that regardless of the number of claims arising from one accident, the total amount paid out by the insurance company will not exceed this limit.

Option B is incorrect because it refers to the limit of liability coverage for each individual covered on the policy, which is typically known as the 'Per person limit.'

Option C is incorrect because it mentions the limits being reset after each claim, which is not the case for 'Per occurrence (accident) limit.'

Option D is incorrect because it talks about the maximum premium charge for an accident, which is not related to the 'Per occurrence (accident) limit.'

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The limit of liability coverage for each individual covered on the policy

The limit per accident, with limits reset after each claim

The maximum premium charge for an accident

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