https://www.insurerbrain.com/w/index.php?action=history&feed=atom&title=Definition%3AExaminationDefinition:Examination - Revision history2026-06-14T06:35:40ZRevision history for this page on the wikiMediaWiki 1.43.8https://www.insurerbrain.com/w/index.php?title=Definition:Examination&diff=10879&oldid=prevPlumBot: Bot: Creating new article from JSON2026-03-11T17:07:42Z<p>Bot: Creating new article from JSON</p>
<p><b>New page</b></p><div>🔎 '''Examination''' in insurance refers to a formal review or investigation conducted by a [[Definition:State insurance department | state insurance department]] or other regulatory body to assess an [[Definition:Insurance carrier | insurer's]] financial condition, market conduct, or compliance with applicable laws. Unlike audits performed by private accounting firms, regulatory examinations carry statutory authority — state [[Definition:Insurance commissioner | insurance commissioners]] have the legal power to compel access to an insurer's records, interview officers and employees, and issue findings that can lead to corrective orders or penalties. Examinations are a cornerstone of the [[Definition:Solvency regulation | solvency regulation]] framework that protects [[Definition:Policyholder | policyholders]] across the United States.<br />
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📊 Two primary types dominate the landscape: financial examinations and [[Definition:Market conduct examination | market conduct examinations]]. Financial examinations — typically performed on a periodic cycle of three to five years, as coordinated through the [[Definition:National Association of Insurance Commissioners (NAIC) | NAIC]] — scrutinize an insurer's balance sheet, [[Definition:Reserves | reserves]], [[Definition:Reinsurance | reinsurance]] arrangements, investment portfolio, and internal controls. Market conduct examinations focus on how the company treats consumers, reviewing [[Definition:Claims handling | claims handling]] practices, [[Definition:Underwriting | underwriting]] decisions, [[Definition:Rate filing | rate filings]], and advertising. The examining team produces a detailed report, and the insurer has an opportunity to respond before findings are finalized and made public.<br />
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⚖️ Regulatory examinations serve as a critical check on insurer behavior and stability, and they carry real consequences. Adverse findings from a financial examination can trigger [[Definition:Regulatory action level | regulatory action levels]] under [[Definition:Risk-based capital (RBC) | risk-based capital]] standards, potentially leading to increased oversight or even [[Definition:Receivership | receivership]]. Market conduct findings may result in fines, mandatory operational changes, or consent orders. For insurers, preparing for examinations is a significant compliance effort — companies maintain dedicated teams and invest in [[Definition:Governance, risk, and compliance (GRC) | governance, risk, and compliance]] systems to ensure readiness. The process also shapes industry practices broadly, as the threat of examination incentivizes carriers to maintain robust documentation and fair treatment standards.<br />
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'''Related concepts:'''<br />
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* [[Definition:Market conduct examination]]<br />
* [[Definition:National Association of Insurance Commissioners (NAIC)]]<br />
* [[Definition:Risk-based capital (RBC)]]<br />
* [[Definition:Solvency regulation]]<br />
* [[Definition:Receivership]]<br />
* [[Definition:Financial statement (insurance)]]<br />
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