MARKET CONDUCT EXAMINATION
(REPORT OF EXAMINATION)

The Insurance Commissioner is authorized by §730 of the California Insurance Code to examine the business affairs of every admitted insurer to determine its financial conditionand compliance with all applicable California Insurance laws. This examination is conducted on-site triennially by the Insurance Commissioner’s Field Examination.

As most of you know, the process involved in the findings of the field examiner and the ultimate published report are the source of serious negotiations between the company and the examiner’s findings. A detained knowledge of the company’s operations and the area being reviewed is required. A skilled negotiator is essential. These “Reports” are available for all California domestic insurance companies on a Statutory Accounting basis (not in GAAP).