Each approved insurer's affairs, transactions, accounts, records, papers, and assets must be examined by the commissioner as often as they are deemed necessary.
A minimum of once every five years is required for the commissioner to conduct this type of examination on each insurer holding a certificate of authorization or certificate of registration. An alien insurer may only have its insurance dealings in the United States under examination.
The commissioner must take into account factors like financial statement analyses and ratios, changes in management or ownership, actuarial opinions, reports from independent certified public accountants, and other standards outlined in the examiner's handbook, which was adopted by the National Association of Insurance Commissioners and was in effect at the time the examination was scheduled and decided upon the nature, scope, and frequency.
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