Market Conduct Examinations

The OIR examines the affairs, transactions, accounts, records, and assets of each authorized insurer as often as it deems necessary — with statutory minimums (F.S. 624.316) that are risk-based: high-risk insurers at least once every three (3) years, average- and low-risk insurers at least once every five (5) years, and at least once every year for a domestic insurer that has continuously held a certificate of authority for less than three (3) years. Each applicant for an initial certificate of authority is examined before it is granted. The reasonable cost of the examination is paid by the person examined. A pattern of willful claims-handling violations lets the OIR order the insurer to file its claims-handling practices and procedures for review — and take corrective or punitive action. (Older study materials state a flat 5-year cycle — current law tiers it by risk.)

The regulator's audit schedule: rookies get checked yearly, risky companies every three years, the rest at least every five — and the insurer picks up the tab.