Final answer:
Examining insurer records is more about governance and compliance and does not constitute doing the business of insurance, which involves underwriting and selling policies. Insurance companies may withdraw from markets when regulations force them to insure high risks at low premiums, as seen in New Jersey and Florida.
Step-by-step explanation:
Examining insurer records would not constitute doing the business of insurance in a state. Doing the business of insurance typically involves activities such as underwriting, selling insurance policies, collecting premiums, and paying out claims. Regulatory activities, such as the examination of records by state insurance regulators, are oversight functions intended to ensure that insurance companies comply with state laws and regulations. Such regulations may include those that set low premiums for insurance, influencing how companies approach risk. When regulations are deemed too restrictive, insurers might opt to withdraw from the market to avoid what is known as adverse selection, where the balance between premiums and payouts is unfavorably altered.
Government influence on the insurance industry, as seen with the regulators in New Jersey and the situation with State Farm in Florida, demonstrates how laws and regulations aiming to protect consumers can also impact insurers' willingness to provide coverage. Nevertheless, examining insurer records is more about governance and compliance, rather than the active engagement in insurance trade.