Final answer:
The Office of Insurance Regulation can examine an insurer's records at any time to ensure regulatory compliance. State insurance regulators aim to keep premiums low while ensuring broad insurance accessibility, leading to complex regulatory outcomes. Insurers may exit markets when premium regulations are overly stringent.
Step-by-step explanation:
The Office of Insurance Regulation has the authority to examine the records of an insurer at virtually any time to ensure compliance with regulations and to safeguard public interest. This examination can be prompted by various triggers, such as consumer complaints, suspicious activities, or as part of regular periodic reviews. State insurance regulators work to balance the objectives of keeping insurance premiums low while ensuring accessibility of insurance to all citizens. This balancing act can lead to complex political challenges and regulatory responses, such as the case in New Jersey where attempts to regulate auto insurance premiums led to many insurers leaving the market.
An important aspect of the regulation of insurance is the fundamental principle that the amount paid out to policyholders cannot exceed the amount collected in premiums. Striking this balance is crucial for the solvency of insurance companies, and when states set stringent requirements on prices, insurers may opt out of those markets, as evidenced by State Farm's withdrawal from selling property insurance in Florida in 2009.