After how many financial examinations of an insurance company does the commissioner need to conduct another?

The requirement for the commissioner to conduct financial examinations of an insurance company every five years is rooted in the need to ensure the financial health and stability of insurance providers. This timeframe allows for a comprehensive assessment of an insurance company's operations, including its reserve levels, compliance with financial regulations, and overall solvency.

Conducting examinations every five years strikes a balance between maintaining oversight and allowing companies sufficient time to adjust and respond to previous findings. This periodic scrutiny helps protect policyholders and the insurance market by ensuring that companies remain financially capable of meeting their obligations. A shorter timeframe might not provide enough time for necessary corrections, while a longer interval could jeopardize the oversight needed to safeguard the interests of consumers. Thus, five years is established as a reasonable duration for the commissioner’s examinations under industry standards and regulatory guidelines.