What is the director's discretion in conducting examinations based on?

The director's discretion in conducting examinations is based on the ability to consider various financial and operational factors that are pertinent to the insurance industry and the specific circumstances of the companies being examined. This allows the director to adapt the examination process to meet the unique needs and challenges of different insurers, ensuring that the examination is thorough and relevant.

While there may be guidelines set by law that frame the scope of examinations, the director's discretion allows for flexibility in applying these guidelines. This adaptability helps in addressing specific issues that may arise during an examination that predetermined guidelines might not encompass comprehensively. Moreover, utilizing data and insights from both the operational realities of the companies and the broader financial landscape plays a crucial role in making informed decisions during the examination process, ensuring regulatory compliance and safeguarding consumer interests.