How often must the commissioner examine all insurers to prevent insolvency?

The Law requires that the Commissioner regularly examines all insurers to ensure their financial stability and viability, which is critical for protecting policyholders and maintaining public trust in the insurance market. Conducting these examinations at least once every five years allows for a thorough review of an insurer's financial condition, operational practices, and compliance with regulatory standards. This timeline helps to proactively identify any potential issues before they escalate to a point where they could lead to insolvency, thus safeguarding the interests of consumers and the overall integrity of the insurance system.

The other options suggest either more frequent examinations than necessary, which could lead to unnecessary regulatory burdens on insurers, or a less proactive approach that could result in problems going unnoticed until they are serious. Regular examinations establish a balance between ensuring robust oversight and allowing insurers the operational freedom required for their business activities.