What is the main purpose of examining agents, brokers, and other insurance professionals?

The main purpose of examining agents, brokers, and other insurance professionals is to ascertain compliance with insurance laws. This involves reviewing their practices, procedures, and operations to ensure they are adhering to the requirements set forth by regulations governing the insurance industry. Compliance examinations help maintain the integrity of the insurance market, protect consumers, and ensure that all entities involved operate within the legal framework established by state and federal laws.

This process is crucial for identifying any potential misconduct, fraud, or unethical practices that could harm consumers or the market. By focusing on compliance, regulatory bodies can enforce rules designed to create a fair and equitable system for all participants in the insurance industry. This oversight ultimately protects policyholders and helps maintain public trust in insurance providers.