P&CMAeasy
Under M.G.L. c. 175 §4, the MA Commissioner of Insurance's authority to examine an authorized insurer's financial condition and market conduct is best described as which of the following?
AAuthority limited to a single examination at initial admission only, with no subsequent review permitted
BAuthority exercisable only upon order of the Superior Court
Authority to examine as often as the Commissioner deems prudent, on a recurring basis
DAuthority barred until the insurer has been declared insolvent
Why this is the answer
M.G.L. c. 175 §4 requires the Commissioner to visit and examine each domestic insurer and each admitted foreign insurer at least once every five years, and whenever the Commissioner deems it prudent. Examinations cover both financial condition and market conduct, and may be performed by the Commissioner, deputies, or contract examiners.
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