P&CPennsylvaniamedium
Under 40 P.S. § 323.1 and following, the PA Insurance Commissioner's examination authority over domestic insurers is best described as which of the following?
AExaminations only when an insurer voluntarily requests one and agrees to pay all associated examination costs
Periodic examinations of the insurer's financial condition and market conduct, at least once every five years
CExaminations triggered solely by a consumer complaint
DExaminations limited to federal IRS tax filings
Why this is the answer
Under PA's examination statute (40 P.S. § 323.1+), the PID examines domestic insurers for both financial solvency and market conduct on a periodic cycle of not less than once every five years. The Commissioner may also order targeted exams at any time based on risk indicators. Voluntary requests, single complaints, and IRS filings are not the statutory triggers for the five-year periodic exam requirement.
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