State RegulationsNJ specificDifficulty 3/5
Which statement most accurately distinguishes a statute from an administrative regulation in New Jersey insurance regulation?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
In New Jersey's system, statutes are enacted by the legislature, and the New Jersey Department of Banking and Insurance then adopts administrative regulations to implement them, using the rulemaking authority of N.J.S.A. 17:1-8.1 and N.J.S.A. 17:1-15e. The two sources work together: the statute states the legal mandate, and the regulation supplies the operational detail that licensees must follow. Confusing the two levels of lawmaking is a classic examination trap.
Why the other options are wrong
- A) The two come from different lawmaking bodies; the Commissioner adopts regulations but does not enact statutes.
- B) The labels are reversed and the trade-group source is wrong: the legislature enacts statutes, and the department adopts regulations.
- D) Both statutes and regulations apply across the lines of insurance; neither is confined to a single product family.
Memory hook
Legislature writes the statute, department writes the regulation — two pens, one system.