Final answer:
State insurance regulators have the authority to review the records of authorized insurers, utilizing state-granted powers to oversee the insurance market, aim for affordable premiums, and ensure insurance accessibility.
Step-by-step explanation:
The state entity with the ability to examine the records of authorized insurers is the state insurance regulator. This power is granted through state statutes, reflecting the centralized role states play in the regulation of the insurance industry in the United States.
Since the establishment of the National Association of Insurance Commissioners in 1871, state regulators have exchanged information and tactics to effectively manage the insurance market. The goals to keep insurance affordable and universally available, however, can sometimes be conflicting and politicized.
State insurance regulators aim to protect the public by keeping insurance premiums reasonable and ensuring that there is widespread access to insurance. To maintain a balance, they monitor insurers closely; examining records is part of this oversight to keep the system fair and solvent. States also possess broad powers to regulate business and professional licensing within their borders, which includes the regulation of insurance companies.
Despite the intention to control costs, insurance economics dictates that the total payouts cannot exceed the collected premiums. When premiums are set too low by regulation, insurers might opt to leave the state to maintain profitability as they cannot cover high-risk individuals at such rates. This dynamic tension shapes the ever-evolving landscape of insurance regulation.