What is the primary purpose of the director's examination of insurers?

The primary purpose of the director's examination of insurers is to determine the financial condition, operational compliance, and ability to fulfill obligations. This examination is essential to ensure that insurance companies are financially stable and capable of meeting their policies' obligations to policyholders. By assessing the financial health of insurers, the director can identify any potential risks or weaknesses that could impact policyholders, thereby protecting the interests of consumers.

Such examinations typically include reviewing an insurer's financial statements, reserves, investments, and compliance with applicable regulations. This oversight is vital in maintaining the integrity of the insurance market and ensuring that insurers operate fairly and responsibly.