How frequently must the Commissioner examine each domestic insurance company?

The correct answer is that the Commissioner must examine each domestic insurance company every 5 years. This requirement is in place to ensure that insurance companies are operating in compliance with state laws and regulations, remain solvent, and protect policyholders' interests. The frequency of examination is set by the Louisiana laws governing insurance companies, which aim to maintain a stable and trustworthy insurance marketplace.

Conducting examinations every 5 years allows for a thorough review of an insurance company’s financial status, operations, and adherence to regulatory standards without imposing overly frequent burdens that could disrupt their operations. This interval strikes a balance between the need for adequate oversight and the practical considerations of regulatory compliance. Lower frequencies, such as annually or every 3 years, might not adequately capture the financial condition changes that can occur within companies, while a 10-year period would likely be too long to ensure ongoing compliance and safety for policyholders.