What is the frequency at which the commissioner must examine each domestic insurance company?

The correct answer is based on the requirement outlined in Maryland insurance regulations regarding the examination of domestic insurance companies. According to the laws governing insurance companies in Maryland, the commissioner is mandated to conduct an examination of each domestic insurance company at least once every five years. This timeframe ensures that the commissioner can effectively monitor the financial condition and compliance of the insurance company with applicable laws and regulations, helping to maintain the stability and integrity of the insurance market.

Examinations are crucial for assessing the solvency and operational practices of insurance companies, which in turn protects policyholders and the public interest. While some jurisdictions may require more frequent examinations, Maryland’s specific regulatory framework establishes the five-year interval as the standard, reflecting an appropriate balance between oversight and operational efficiency for insurance companies within the state.

The other options suggest frequencies that do not align with Maryland's regulations. A yearly examination may be impractical due to resource allocation, while three-year and seven-year intervals do not meet the established timeframe for mandatory examinations set forth by the commissioner. Thus, the requirement for a five-year examination makes it the correct answer.