What is the term used to describe the insurance coverage that is mandated by state law?

Statutory coverage refers to the type of insurance coverage that is required by law within a particular state. Each state establishes its own regulations regarding the minimum levels of coverage that must be obtained to ensure a baseline level of protection for consumers and the public. This includes various forms of insurance, such as auto liability insurance or workers' compensation, which individuals and businesses must have to operate legally within that jurisdiction.

This concept ensures that there are minimum protections in place for individuals in case of an accident or unforeseen circumstance. In contrast, voluntary coverage, standard coverage, and elective coverage are terms that describe types of insurance policies or choices that individuals might engage in, but they do not convey the legal requirement aspect inherent to statutory coverage. Statutory coverage is specifically designed to safeguard both the insured party and the broader community, ensuring that certain risks are appropriately insured against, as required by state statute.