How often must the director examine each authorized insurer?

The requirement for the director to examine each authorized insurer is set forth in regulatory statutes that aim to ensure the financial health and compliance of insurance companies. The correct answer indicates that the examination must occur at least once every five years. This periodic examination is essential for assessing the solvency, practices, and overall business conduct of insurers.

Such examinations help in identifying potential risk factors that could lead to financial instability or unethical practices. By mandating that these reviews occur at least every five years, regulators can maintain a close oversight of insurers, which is crucial in protecting consumers and ensuring the integrity of the insurance market.

In contrast, the other options suggest more frequent or less structured examination schedules. Annual examinations might overwhelm regulatory resources without sufficient reason, while a three-year interval is too infrequent to catch issues that could arise in a shorter timeframe. The option that mentions examinations only happening if complaints are made lacks the proactive approach intended by regulators to maintain industry standards and protect policyholders continually.