Who bears the cost of additional examinations and investigations conducted by the director?

The correct answer indicates that the cost of additional examinations and investigations conducted by the director is borne by the state. This is consistent with the structure of regulatory oversight where state agencies, such as the insurance department, conduct investigations to ensure compliance with laws and regulations pertaining to insurance practices. When the department undertakes these examinations, it is performing its duty to protect the public interest, which is a function of state government.

In this context, the options suggesting that the costs would fall on an individual or the federal government do not align with the established responsibilities of state regulatory agencies. The department of insurance typically has funding provided through the state budget, which allows it to operate and perform necessary regulatory functions without passing those costs onto individuals under investigation or external governmental bodies.