State RegulationsOH specificDifficulty 1/5
Under Ohio law, the Superintendent's authority to examine the books and records of insurers transacting business in this state is best described as:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
ORC 3901.04 and ORC 3901.07 give the Ohio Superintendent of Insurance general supervisory authority over the insurance business in this state, including the power to conduct examinations of the books and records of insurers transacting business here. Examination is a routine regulatory tool used to verify solvency and compliance, not an action that requires the insurer's case-by-case consent or a court proceeding.
Why the other options are wrong
- B) The examination power is a standing supervisory authority under ORC 3901.04 and ORC 3901.07; it does not depend on the insurer's written consent to each exam.
- C) Examinations are preventive and routine; they are not reserved for insolvency proceedings or receivership, which are separate remedies.
- D) Insurance is primarily state-regulated in Ohio; the Superintendent, not a federal regulator, conducts these examinations.
Memory hook
Ohio's Superintendent can open the books — consent not required.