How frequently must a domestic insurance company be examined according to the Examination of Records provision?

Domestic insurance companies are required to be examined at least once every three years according to the Examination of Records provision. This regulation ensures that the financial practices and operations of the insurance companies are appropriately monitored, allowing regulators to assess the companies' compliance with state laws and financial solvency. The three-year interval strikes a balance—frequent enough to maintain oversight and ensure consumer protection while providing insurance companies with sufficient time to implement any necessary changes or improvements following prior examinations.

Other intervals, such as annual or biennial examinations, could create a heavier regulatory burden on companies, potentially affecting their operational efficiency and the overall market. Conversely, examinations occurring every five years may not provide timely oversight to detect issues or non-compliance that could arise in the rapidly changing insurance landscape. Therefore, the three-year requirement reflects a thoughtful approach to regulatory oversight in Maine's insurance environment.