The statement "The NJ Insurance Commissioner may create insurance laws" is:

The statement "The NJ Insurance Commissioner may create insurance laws" is:

• A. True
• B. False
• C. Not Specified
• D. Only with Legislative Approval

Answer: (B)

The main idea here is who creates laws versus who issues rules to implement them. In New Jersey, the Insurance Commissioner does not create insurance laws. Laws are created by the state Legislature. The Commissioner’s role is to administer and enforce those laws and to issue regulations that explain how the statutes will be applied. These regulations carry legal effect, but they come from statutes and are made through a formal rulemaking process, not by the Commissioner unilaterally passing new laws. So saying the Commissioner may create insurance laws is incorrect.

The main idea here is who creates laws versus who issues rules to implement them. In New Jersey, the Insurance Commissioner does not create insurance laws. Laws are created by the state Legislature. The Commissioner’s role is to administer and enforce those laws and to issue regulations that explain how the statutes will be applied. These regulations carry legal effect, but they come from statutes and are made through a formal rulemaking process, not by the Commissioner unilaterally passing new laws. So saying the Commissioner may create insurance laws is incorrect.