The Financial Examination department plays a vital role in monitoring the solvency of insuring organizations chartered in Massachusetts. This role is principally fulfilled by conducting statutorily required on-site audits of domestic licensed insurance companies and other licensed entities. In 2005, Massachusetts was the domicile of fifty-five property/casualty insurers, nineteen life, accident and health insurers, two title insurance companies, eleven health maintenance organizations, two lodge fraternal organizations, three medical service corporations, twenty-five workers' compensation self-insured groups, several residual market pools, (e.g., FAIR Plan and Commonwealth Automobile Reinsurers) and over one hundred fifty fraternal benefit and mutual aid societies. These licensed or approved insurers write a total of over $45 billion in direct premium worldwide.
The Financial Examination department employs twenty three full time examiners to accomplish the Division's statutory examination requirements. Additionally, utilization of the services of outside contractor specialists provide additional auditors/examiners, tax specialists, actuaries, etc., determined based upon the size, complexity and risk assessment issues of the insurance company and the financial examination thereon. Included in the Financial Examination department are staff examiners who, on an as-available basis, are temporarily assigned to examine about one hundred fifty non-lodge fraternal benefit and mutual aid societies. Also, staff examiners are employed in the process of collecting the annual taxes that special brokers pay on Massachusetts risks placed with excess and surplus lines carriers authorized to conduct business in the Commonwealth of Massachusetts.