What time period does a market conduct examination cover?

A market conduct examination typically covers a period of 2 full calendar years prior to the examination. This time frame allows regulators to assess the practices and procedures of an insurance company or adjuster during a substantial period, ensuring that companies comply with state regulations and maintain fair treatment of policyholders. By observing two complete calendar years, the examination can capture a comprehensive view of the company’s market practices, allowing for a more accurate evaluation of compliance and consumer protection measures.

The choice of covering two full calendar years rather than a shorter or longer period reflects a balance between gaining adequate insight into the organization's operations without being overly burdensome or too detached from current practices. This timeframe also helps to establish trends and patterns in market conduct that might not be evident in a shorter timeframe.