What is a statutory limit in an insurance policy?

A statutory limit in an insurance policy is a set maximum amount of money that an insurance company will pay out on a claim. These limits are outlined in the insurance policy itself, and they are legally binding. In Washington, these limits are set by the Insurance Commissioner, who is responsible for regulating insurance companies in the state. Statutory limits vary depending on the type of insurance policy and the coverage it provides. Generally, most insurance policies have a limit on the total amount of money that can be paid out on a single claim, which is known as the “per claim” limit. They may also have limits on the amount of money the insurance company will pay out for all claims made within a certain period of time, which is known as the “aggregate limit.” It’s important for Washington residents to understand the statutory limits of their insurance policy, as these limits can dictate how much money might be paid out on a claim. If a claim exceeds the limit stated in the policy, the insurance company will not pay out more than the limit. It’s always important to read through your policy carefully and understand the limits of coverage outlined in it.

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What is a statutory limit in an insurance policy?

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