How often do domestic insurers need to be examined?

Domestic insurers are typically required to undergo an examination every five years. This examination process is essential for ensuring the financial stability and regulatory compliance of the insurers. During this review, various aspects of the insurer's operations are analyzed, including financial health, claims handling, risk management practices, and adherence to state regulations.

This five-year interval allows sufficient time to assess the insurer's performance and make necessary adjustments while ensuring that policyholders' interests are protected. Additionally, frequent examinations can burden both insurers and regulators. Therefore, a five-year cycle strikes a balance between thorough oversight and operational efficiency in the insurance industry.