How often must the Director of Insurance examine the business transactions, accounts, and records of insurers?

The Director of Insurance is required to examine the business transactions, accounts, and records of insurers at least once every five years. This timeline allows the regulatory body to ensure that insurers are operating within legal and financial guidelines, safeguarding the interests of policyholders. Regular examinations help maintain the integrity of the insurance market and protect consumers, ensuring that insurers remain financially viable and compliant with state regulations.

While more frequent examinations could provide additional oversight, the five-year requirement balances the need for regulatory scrutiny with the operational realities of insurers. Conducting these examinations helps to identify potential financial issues or areas of noncompliance, which can then be addressed proactively. This timeframe also allows insurers to operate without the constant pressures of annual or biannual reviews, which could impact their day-to-day functions and financial planning.