| Domestic Insurance Company: |
A domestic insurance company is incorporated according to the laws of the state and is domiciled within the state. |
| Domicile State: |
A domicile state is the state in which an insurance company has its principle legal residence. |
| Financial Condition Examination: |
Financial condition examinations are conducted on a periodic basis for all domestic insurance companies. The periodic basis is every three years for all health maintenance organizations and every five years for all other domestic insurance companies. A schedule for financial condition examinations can be located here. |
| Limited Scope Examination: |
Limited scope examinations are narrowly focused with specific purpose and are conducted upon the call of the Superintendent of Insurance. |
| Market Conduct Examinations: |
Market conduct examinations are risk based and concentrate upon business practices within a specific marketplace. They can be performed because of an increase in complaints or information from other resources and are conducted upon the call of the Superintendent of Insurance. |
| Solvency: |
Solvency is a minimum standard of financial health for an insurance company, where assets exceed liabilities. |
| Targeted Examination: |
Targeted examinations are conducted because of special circumstances where there has been an indication either through financial analysis or from another source that the division may want to conduct an examination outside of the statutory due date. These examinations are conducted upon the call of the Superintendent of Insurance. |
