How often must domestic companies be examined for compliance?

Domestic companies must be examined for compliance every 5 years to ensure that they adhere to regulatory standards and practices. This timeframe is established to promote financial stability and integrity within the insurance industry. Regular examinations allow regulators to assess the company's financial condition, verify compliance with state laws, and ensure that policyholders are protected. By conducting these evaluations every 5 years, regulators can identify potential issues early and provide guidance or corrective actions, enhancing overall market confidence and consumer trust in the insurance system.

In contrast, shorter examination periods may not allow sufficient time to assess long-term trends, while longer periods could lead to undetected regulatory issues, potentially jeopardizing the financial health of the companies and the protection of policyholders.