What kind of examination is performed on a foreign insurer for the benefit of all licensing states?

A zone exam is a specific type of examination conducted on foreign insurers to facilitate a streamlined regulatory review process among multiple states. When an insurance company's operations extend beyond the borders of its home state, such examinations help ensure that the insurer complies with the regulatory requirements and standards set by various states where it conducts business.

The primary purpose of a zone exam is to provide a comprehensive evaluation that benefits all states that license the foreign insurer. It allows for greater efficiency in regulatory oversight, ensuring consistency and comprehensive assessments without each state having to perform its separate examination, thereby reducing redundancy.

This method supports better communication and cooperation between the participating states, enabling them to share findings and foster a collaborative regulatory environment. By having a unified examination process, states can ensure that all insurers maintain sound financial practices and meet regulatory standards efficiently. This ultimately protects policyholders across state lines while promoting a healthy insurance marketplace.