Final answer:
Insurers in Louisiana are required to be audited by the Commissioner of Insurance every three years or more frequently if needed, as dictated by the State Legislature.The correct answer is: b
Step-by-step explanation:
The question pertains to the regulation and auditing requirements imposed on insurers in Louisiana. The correct answer to the question is: All insurers in Louisiana must be audited by the Commissioner of Insurance at least once every five years or as often as deemed necessary or requested by the State Legislature. Therefore, the correct choice is b) 3 years, State Legislature.
Governing bodies regulate the insurance industry to manage the balance between keeping insurance rates affordable and ensuring that the coverage is widely available.
This regulatory landscape can lead to the imposition of premium-setting rules by state regulators, trying to maintain low premiums, which in turn may influence the willingness of insurance companies to operate in certain states.
Notably, strict rules demanding insurers sell policies at low prices can push them to exit the market, as evidenced when several insurance companies ceased operations in New Jersey and when State Farm withdrew from selling property insurance in Florida.
The correct answer is: b) 3 years, State Legislature According to the Louisiana insurance regulations, all insurers in the state of Louisiana must be audited by the Commissioner of Insurance at least once every three years, or more frequently if considered necessary or if requested by the State Legislature.
The purpose of such audits is to ensure that insurers are meeting the financial and operational standards set by the state to protect policyholders and claimants.