What does an insurance company's solvency examination involve?

The correct choice involves assessing the insurance company's financial health over a certain period. A solvency examination is a critical process whereby regulators or independent auditors evaluate a company's ability to meet its long-term financial obligations. This assessment includes a thorough review of the company's reserves, liabilities, assets, and overall financial statements.

The focus is on understanding whether the company has sufficient resources to pay claims and other obligations, which is fundamental to the trust policyholders place in their insurance provider. A strong financial position is essential for an insurance company to operate effectively, and this examination plays a vital role in ensuring that only financially stable companies are allowed to continue operating in the market, thus protecting consumers.

In contrast, the other choices relate to aspects that, while important for a company's operations, do not directly assess its ability to sustain solvency. Advertising methods, customer satisfaction ratings, and the educational background of agents primarily pertain to marketing, customer experience, and operational competence rather than the company's financial foundation. Therefore, they are not relevant to the solvency examination process.