What action must the director take if they believe someone has violated insurance laws?

If the director believes that someone has violated insurance laws, the required action is to inform the attorney general or county attorney, who will subsequently initiate legal action. This process is essential in maintaining regulatory oversight and ensuring that violations are addressed appropriately. The involvement of law enforcement or legal authorities is crucial for enforcing the law, as they possess the legal framework and resources to conduct investigations, file charges, and pursue litigation.

This action underscores the collaborative nature of insurance regulation, where the director acts as a conduit between the regulatory body and the judicial system. It ensures that violations are handled by professionals trained in legal proceedings, which is vital for upholding the integrity of the insurance industry.

In contrast, notifying only the insurance company would not suffice, as it may not lead to necessary legal consequences or address public interest considerations. Conducting an internal investigation might provide insights but would lack the authority to enforce the law effectively. Lastly, taking no action unless requested undermines the director's role and responsibility to oversee and protect the insurance market, leaving potential violations unaddressed.