An insurance examiner audits insurance companies to ensure compliance with laws and regulations. They review cash reserves, policies, and may take punitive action against violators. Examiners typically have a degree in finance or mathematics and may be licensed accountants.
An insurance examiner is a government official responsible for auditing insurance companies and ensuring that these companies comply with regional or national laws. In many countries, examiners are required to carry out audits on a regular basis, while these individuals also have the authority to carry out unscheduled audits if an insurance company is suspected of breaching industry rules or regulations. During investigations involving large companies, examiners typically work in teams, with each individual taking responsibility for examining an element of the company’s financial affairs.
Typically, an insurance examiner must have completed a college degree, and many employers prefer to hire people who have completed degree programs related to finance or mathematics. In some countries, people performing audits must be licensed accountants; in that case, an examiner may have to attend a series of accountant training classes and then pass a licensing exam. In addition to hiring examiners with academic credentials related to accounting or finance, regulatory agencies often hire people with previous experience working in the insurance industry.
Insurance companies issue various types of policies, including life, health, property and liability contracts. In many nations, there are laws designed to ensure that these companies have enough money in reserve to cover projected payments. An insurance examiner should review each company’s accounts and compare their cash reserves to their outstanding obligations. If the company does not have cash, the examiner may instruct the company to raise more funds or not to issue more policies until its cash reserves are strengthened. In a worst-case scenario, an examiner may have the authority to close a company and liquidate its assets if its obligations greatly exceed the company’s means.
In addition to checking cash reserves, an insurance examiner must inspect the policies a company issues to ensure those contracts are in compliance with local or national policy writing regulations. In some countries, examiners may assess fines and other penalties on companies that violate industry rules. In addition, examiners may take punitive action against individual agents or underwriters who violate the professional rules of the code of conduct.
In some areas, companies cannot sell life insurance policies, such as annuities, until an examiner has reviewed all product-related documentation. Some large companies may sell policies in some areas that violate regulatory requirements in other regions. In addition to rejecting or approving new product offerings, examiners can also advise insurance companies to make changes to policies so that these products meet industry standards.
Protect your devices with Threat Protection by NordVPN
