What is the minimum frequency for examining insurers licensed in the state?

The minimum frequency for examining insurers licensed in the state is once every five years. This timeframe for examination is established to ensure that insurers maintain sound financial practices and comply with state regulations. Conducting these examinations every five years allows regulators to assess the financial health and operational integrity of the insurer while also reducing the frequency of regulatory burden for companies that are operating effectively.

This periodic examination helps in identifying potential issues early on, allowing regulators to take necessary actions to protect policyholders. The five-year interval strikes a balance between oversight and allowing insurers enough time to operate without excessive regulatory disruption.

Regular examinations are important for maintaining market stability and ensuring that insurers are capable of meeting their financial obligations to policyholders. This leads to increased trust in the insurance system overall, fostering consumer confidence.