The Commissioner is required to examine books and records of all domestic insurers at least once every:

The requirement for the Commissioner to examine the books and records of all domestic insurers at least once every five years aligns with regulatory practices aimed at ensuring the financial health and compliance of insurance companies. This timeframe allows for a thorough review of the financial records and operational practices of insurers, helping to identify any areas of concern or risk that may affect policyholders or the overall insurance market.

Conducting these examinations every five years strikes a balance between regulatory oversight and the administrative burden on the insurers. More frequent examinations could lead to excessive interference in the day-to-day operations of insurers, while less frequent examinations could result in missed opportunities to address financial or operational issues in a timely manner.

In North Carolina, this regulation helps maintain trust and integrity within the insurance industry, reassuring the public that their insurers are operating within regulatory guidelines and are financially solvent. This level of scrutiny is essential for protecting consumers and ensuring that insurance companies are adequately capitalized to pay claims when they arise.