What action by an insurance company will likely prompt an examination by the Commissioner?

The action that is most likely to prompt an examination by the Commissioner is the application for an initial Certificate of Authority. When an insurance company seeks to operate within a state, it must first obtain a Certificate of Authority, which demonstrates that it meets the state's regulatory requirements for financial stability, solvency, and compliance with relevant laws. This process typically involves a rigorous review by the Commissioner or designated regulatory authority to ensure that the insurance company is capable of fulfilling its obligations to policyholders and functioning within the state’s insurance market.

During this examination, factors such as the company’s financial history, the backgrounds of its founders and executives, and its proposed operating plans would be scrutinized to assess any potential risks. Collectively, this comprehensive vetting process is essential for maintaining consumer trust and safeguarding the insurance system. Thus, an initial application triggers heightened scrutiny from the Commissioner, ensuring that only qualified insurers enter the market.

In contrast, actions such as renewing or amending an existing Certificate of Authority, operational changes, or regular financial reporting may not necessitate the same level of examination, as these are ongoing processes for established companies that already comply with the state's regulations.