A domestic insurance company MUST be examined by the Commissioner every ___ years.

The requirement for a domestic insurance company to be examined by the Commissioner every five years is rooted in the regulatory framework that governs the insurance industry. Regular examinations are essential for ensuring that insurance companies remain solvent, operate fairly, and comply with state laws and regulations.

The five-year interval strikes a balance, allowing for adequate oversight while also considering the resources of both the insurance company and the regulatory body. It ensures that any potential issues, such as financial instability or unfair practices, are identified and addressed promptly, thereby protecting consumers and maintaining confidence in the insurance market.

In contrast, longer intervals, such as seven or ten years, could result in significant risks going undetected for too long, potentially leading to negative outcomes for policyholders. Periodic examinations every five years help promote transparency, accountability, and the overall health of the insurance industry.