How often must domestic insurers be examined by regulators?

Domestic insurers must be examined by regulators every five years, which aligns with typical regulatory standards designed to ensure the financial health and compliance of insurance companies operating within a state. This interval allows regulators to conduct thorough reviews of an insurer's financial practices, operational integrity, and adherence to state laws, ensuring that the company can meet its policyholder obligations.

Conducting examinations at this frequency balances the need for oversight with the understanding that frequent examinations could impose significant burdens on insurers, potentially affecting their operations and service delivery. By choosing a five-year cycle, regulators can adequately review the financial status and compliance of domestic insurers while allowing them enough time to operate and grow without the constant pressure of annual scrutiny. This approach is designed to protect consumers while maintaining a stable insurance market within the state.