What is the primary purpose of the Commissioner's examination of an insurance company's records?

The primary purpose of the Commissioner's examination of an insurance company's records focuses on determining the solvency of the company. Solvency refers to the ability of the insurance company to meet its long-term financial obligations, which is critical for ensuring that policyholders’ claims can be paid in a timely manner. This examination scrutinizes the insurer's financial health to evaluate whether it has sufficient reserves and surplus to cover its liabilities, ultimately protecting consumers and maintaining confidence in the insurance marketplace.

In this context, profitability is important but secondary to solvency, as a company can be profitable yet still face solvency issues due to poor asset management or unexpected liabilities. Assessing customer satisfaction is more subjective and does not directly relate to the financial stability of the company. Similarly, while evaluating the efficiency of claims processing is crucial for operational success, it does not directly influence the fundamental requirement of an insurer's financial viability. Hence, the focus of the Commissioner's examination is rightly placed on ensuring that insurance companies remain solvent to protect policyholders and the integrity of the insurance system.