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

The cost of additional examinations and investigations conducted by the director is borne by the state as part of its regulatory functions. The director, often functioning as a part of the state’s department of insurance or equivalent authority, undertakes these examinations to ensure compliance with state laws and regulations governing insurance practices. The funding for these activities typically comes from the state’s resources, as they are essential for maintaining market integrity and protecting consumers.

In this context, it’s important to understand that while insurance companies operate within the sector and must comply with regulations, the governmental body is responsible for regulatory oversight, which includes funding necessary examinations or investigations to ensure fair practices in the insurance market. Thus, the state's allocation of resources for these regulatory activities highlights its commitment to consumer protection and maintaining the stability of the insurance industry.