Who is responsible for paying the expenses of an examination conducted by the commission?

The insurer or individual examined is responsible for paying the expenses of an examination conducted by the commission because this requirement is typically outlined in insurance regulations. When a commission conducts an examination, it is often to ensure compliance with state laws and regulations regarding insurance practices. The costs incurred during this examination, which could include fees for personnel, travel, and resources needed to perform the examination thoroughly, fall on the entity being examined.

This approach reinforces accountability, as it ensures that insurers maintain accurate practices since they bear the financial responsibility for oversight. It also means that the state or commission can conduct examinations without budget concerns affecting their ability to monitor insurance practices, thereby promoting a more regulated and safe insurance market.

The other options do not typically reflect standard practices in regulatory examinations. The state government or the commission itself usually does not cover these costs, as that would undermine the incentive for insurers to comply with regulations. A third-party auditor is not responsible for these expenses, as they are hired by the commission to conduct specific examinations but do not take on the financial burden of the examination process itself.