Washington Personal Lines Insurance License Exam — All Questions

What minimum auto liability limits must a Washington personal auto policy carry?

• a.$15,000 per person / $30,000 per accident bodily injury and $5,000 property damage
• b.$25,000 per person / $50,000 per accident bodily injury and $10,000 property damage✓
• c.$30,000 per person / $60,000 per accident bodily injury and $25,000 property damage
• d.$50,000 per person / $100,000 per accident bodily injury and $50,000 property damage

Washington requires minimum auto liability limits of 25/50/10 — $25,000 bodily injury per person, $50,000 bodily injury per accident, and $10,000 property damage. These are minimums; producers should encourage higher limits. Source: Washington Office of the Insurance Commissioner (https://www.insurance.wa.gov).

How does Washington handle fault when a covered auto accident occurs?

• a.Washington is a pure no-fault state; each driver's own insurer always pays regardless of fault
• b.Washington bans lawsuits after auto accidents entirely
• c.Washington is a tort ('at-fault') state — the at-fault driver is financially responsible — though drivers may buy optional Personal Injury Protection✓
• d.Washington requires every driver to carry full-tort or limited-tort selection like Pennsylvania

Washington is a traditional tort (at-fault) state: the driver who causes a crash is financially responsible for the resulting injuries and damage. Personal Injury Protection (PIP), which pays your own medical costs regardless of fault, is optional — insurers must offer it, but the insured may reject it in writing. Source: Washington Office of the Insurance Commissioner (https://www.insurance.wa.gov).

In Washington, what must an insurer do regarding Personal Injury Protection (PIP) coverage on a personal auto policy?

• a.Include PIP mandatorily on every policy with no option to decline
• b.Refuse to offer PIP because it is illegal in Washington
• c.Offer PIP only to commercial policyholders
• d.Offer PIP, which the applicant may accept or reject in writing✓

Washington law requires insurers to offer PIP (no-fault medical/wage coverage) on personal auto policies, but the coverage is not mandatory — the named insured may reject it in a written waiver. If PIP is not affirmatively rejected in writing, it is generally included. Confirm current minimum PIP amounts with the Washington Office of the Insurance Commissioner (https://www.insurance.wa.gov).

How are cancellation and nonrenewal of a personal auto or homeowners policy regulated in Washington?

• a.An insurer may cancel any personal policy at any time for any reason with no notice
• b.Only the policyholder may ever cancel; insurers can never cancel mid-term
• c.There are no notice rules; cancellation is governed solely by the contract
• d.State law limits the reasons an insurer may cancel or nonrenew and requires advance written notice to the insured; confirm the exact notice period with the Office of the Insurance Commissioner✓

Washington restricts mid-term cancellation of personal auto and homeowners policies to specified reasons (such as nonpayment or material misrepresentation) and requires advance written notice of cancellation or nonrenewal. The exact number of days varies by reason and line — verify current Washington notice periods with the Office of the Insurance Commissioner.