PSI Life Exam Practice Test

Which of the following authorities is required to examine the business records of domestic insurance companies in Wisconsin?

1. The Office of Commissioner of Insurance

2. State Department of Finance

3. Federal Insurance Bureau

4. The Insurance Regulatory Authority

The correct answer is: The Office of Commissioner of Insurance

The Office of Commissioner of Insurance is the correct authority responsible for examining the business records of domestic insurance companies in Wisconsin. This office operates under state law, which mandates that the commissioner oversees the regulation of insurance companies to ensure they are financially sound and operating within the legal framework established for the protection of policyholders and the public. The examination process is crucial for maintaining compliance with state regulations, assessing financial stability, and ensuring fair practices within the industry. Other authorities listed, such as the State Department of Finance and the Federal Insurance Bureau, do not specifically oversee the examination of insurance companies at the state level in Wisconsin. The Insurance Regulatory Authority is a more generic term and does not denote the specific state-level office whose primary role includes this regulatory function. Thus, the Office of Commissioner of Insurance is uniquely positioned with the legal authority and responsibilities required for these examinations in Wisconsin.