Statute

What Does Statute Mean?

A statute is a written policy or law enacted by a legislative authority. Statutes may prescribe, declare, prohibit, or mandate specific actions. Numerous statutes govern the insurance industry to ensure a fair market and protect consumers. For drivers, the most familiar examples are the state laws that set minimum car insurance requirements by state, which dictate the lowest amount of liability coverage a person must carry to legally drive.

Insuranceopedia Explains Statute

Statutes take effect immediately upon being passed. There are several types of statutes: temporary, private, perpetual, and declarative. Temporary statutes have a limited duration, while perpetual statutes are continuous and do not have time limits. Declarative statutes resolve conflicting decisions regarding laws that govern a particular issue. Private statutes apply to specific individuals and their private rights. Because each state legislature passes its own insurance statutes, the rules vary widely from one place to the next, which is why car insurance in Iowa looks different from coverage rules in other states.