 Posted: Tue Oct 20, 2009 1:56 am Post subject: |
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| Quote: | | I believe this refers to minimum benefit levels a policy must provide under law. |
Heidrek is right on target. When you hear the term "statutory," it refers to state (and sometimes federal) laws. The statutes are the laws on the books in each state. Certain provisions contained within various insurance policies are required to meet the statutory minimums as provided by law in that state. These are also referred to as "statutory requirements," statutory minimums" and "minimum required benefits."
These occur all over the place in our business. For example, in car insurance policies, the statutory minimum benefit would be the minimum liability coverage required by financial responsibility and mandatory car insurance laws. In medical coverage, these "statutory" requirements could refer to things like the grace period, free look periods, incontestability provisions and a boatload of other stuff. Workers' Compensation has statutorily required benefits for wage loss, medical bills, etc. Most contracts have language, benefits and coverage that must meet certain mandated (legally required) laws.
Hopefully this helps and let us know if you want more!
InsTeacher 
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