Under what circumstance does the insurance commissioner have jurisdiction over unfair trade practices?

The jurisdiction of the insurance commissioner over unfair trade practices primarily arises when a complaint is formally filed. This provides a structured and legal basis for the commissioner to take action, ensuring that there are specific allegations and evidence to investigate. The formal complaint process is crucial in maintaining fair practices within the industry, as it allows for systematic oversight and enforcement of regulations designed to protect consumers and ensure ethical conduct by insurance providers.

Regular industry audits play an important role in monitoring compliance, but they are not the specific trigger for the commissioner's jurisdiction over unfair trade practices. A decline in a company’s profits does not automatically indicate unfair practices or call for the commissioner’s intervention. Approval from the Attorney General may be necessary for certain legal actions but does not directly grant jurisdiction to the insurance commissioner in the context of unfair trade practices. Therefore, the formal complaint process is the key mechanism that enables the commissioner to exercise their jurisdiction effectively.