Question

Which of the following statements regarding an examination of an insurer's books and records by the superintendent is true?

a) The superintendent is prohibited from examining an insurer's books and records.
b) The examination is only conducted if requested by the insurer.
c) The superintendent may conduct examinations at any time without prior notice.
d) Insurers are only required to provide records for the most recent year.

Answer 1

The superintendent can conduct examinations of an insurer's books and records at any time without prior notice to ensure compliance with regulatory standards. The option (C) is correct.

Step-by-step explanation:

The statement that is true regarding an examination of an insurer's books and records by the superintendent is The superintendent may conduct examinations at any time without prior notice. Regulatory authorities such as the superintendents of insurance have the power to examine an insurer's books, records, and operations to ensure that they comply with legal and regulatory standards.

These examinations are conducted to protect the interests of policyholders and the public and can cover a wide range of time, not limited to just the most recent year. Therefore, option (C) is correct.