How frequently does the insurance commissioner examine the financial records of insurance companies?

The insurance commissioner typically examines the financial records of insurance companies every five years. This schedule is designed to ensure that insurance companies maintain adequate financial health and comply with regulatory requirements. Conducting examinations at this interval allows the commissioner to assess each company's stability, solvency, and operational practices without overwhelming the companies with too frequent inspections, which might divert resources away from their primary functions.

This balance between oversight and operational efficiency helps to protect consumers while fostering a stable insurance marketplace. The five-year period gives insurance companies sufficient time to adjust and improve any identified issues between examinations, maintaining a regulatory framework that is both fair and effective.