What type of defense in liability insurance is determined by the legislature?

The correct choice is statutory. In liability insurance, a statutory defense is specifically established and defined by law enacted by a legislative body. This means that the terms and conditions of the defense are outlined in statutes—written laws that reflect the will of the legislature.

Statutory defenses can provide clear guidelines on how certain liability claims may be handled. For instance, there may be statutes that limit liability in specific scenarios or protect certain entities from legal responsibility, such as certain employer-employee situations outlined in workers' compensation laws. As these statutes are created through the legislative process, they can be straightforward to understand and apply in determining liability.

The other types of defenses mentioned fall under different classifications. Common law defenses are derived from court decisions and legal precedents rather than from legislative action. Judicial defenses originate from the court system's interpretations and rulings. Administrative defenses relate to regulations set by administrative agencies rather than legislation. Understanding that statutory defenses arise directly from legislative acts helps to clarify their role in liability insurance.