Texas All Lines Adjuster Practice Test

Statutory law is based on laws set forth by whom?

1. The federal government

2. A governing authority like a state legislature

3. The insurance industry alone

4. Judicial precedents

The correct answer is: A governing authority like a state legislature

Statutory law is established by governing authorities, such as state legislatures or federal legislative bodies. These entities create laws that are written and codified, making them a formal part of the legal framework. The significance of statutory law lies in its source: it is enacted through a democratic process where elected representatives debate and vote on proposed legislation. This contrasts with other forms of law, such as common law, which is based on judicial precedents and interpretations rather than explicitly written statutes. The focus on a governing authority being the source of statutory law is crucial because it emphasizes the structured and systematic approach to law-making, reflecting the will of the community through their elected representatives. This ensures that the laws are relevant, applicable, and accountable to the citizens they govern. In contrast, the options representing judicial precedents and the insurance industry alone do not capture the essence of statutory law, which is inherently tied to publicly enacted legislation. Therefore, understanding that statutory law derives from governing authorities is fundamental for grasping how laws are created and enforced within a legal system.