How often must an examination of every insurer be conducted?

In the context of Indiana insurance regulations, an examination of every insurer must be conducted at least once every five years. This requirement ensures that insurance companies are regularly assessed for their financial condition, compliance with state laws, and overall operational practices. The five-year interval allows adequate time for insurers to operate, implement changes, and prepare for a comprehensive review by regulators, ensuring that they remain financially viable and can fulfill their obligations to policyholders.

The rationale behind this period is rooted in the need for a balance between regulation and operational efficacy. It provides regulators with enough time to analyze trends within the insurance market while ensuring policies and practices remain in compliance with the law over a reasonable timeframe. Thus, the requirement for examinations every five years serves as a critical check on the health of the insurance market and protects consumers from the risk of insurer insolvency.