Statutory Law
What Does Statutory Law Mean?
A statutory law, or statute, is a law that is passed and voted on by a legislative body and then approved by an executive body. It is not open to multiple interpretations but is recorded and published for public access to those affected by it.
Insuranceopedia Explains Statutory Law
Common law, also known as court law, can be interpreted differently by various courts, even when the interpretation is grounded in a solid legal basis, such as reliance on precedent. Statutory law, however, does not allow for such flexibility in interpretation.
Statutory law is passed and voted on by a legislative body, such as Congress, and becomes law when approved by an executive body, such as the President’s office.
In the United States, the insurance industry is regulated by statutory laws enacted at the state level.
