SystemCompliance, Market Conduct & AI Governance

Market Conduct Exam Management

Market conduct exam management that tracks every examiner request to its due date and answers it from the file

Every examiner request tracked to its due date, answered from the file.

See one case, screen by screen ↓
demo782documentspulled for a 79-file claims sample, every one numbered with its source
demo6exceptionsfound in the sample and explained in the cover letter before the examiner saw them
demo3business daysearly — the sample request submitted after counsel and the manager signed off
target2daysfrom an examiner’s sample request to a checked response package
In short

What is Market Conduct Exam Management?

Software that runs a market conduct examination from the call letter to the closing report: every examiner request tracked with its owner and due date, the files and answers gathered, and responses to criticisms and remediation kept on record. Market Conduct Exam Management adds agents that pull each sampled file, test it against the standards the examiners use, and draft cited answers and explanations.

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Updated

The problem

Why a market conduct exam turns into findings

A market conduct exam opens with a call letter from the department: dozens of requests for data files, procedures, manuals, letters and samples of claim, complaint and policy files, most due in ten business days — and fieldwork adds a new batch of follow-ups every week. The exam coordinator runs it from a spreadsheet and a shared drive, and chases claims and underwriting experts for every file and every answer.

A 79-file sample of closed claims is hundreds of documents — notes, letters, photos, estimates, payments — pulled by adjusters between their own claims. The company usually learns what is wrong with a sampled file when the examiner writes it up: a late acknowledgement, a denial letter that never quotes the policy provision, a count that does not agree with the MCAS filing. Each one is a criticism answered under a deadline, and every re-request adds billed examiner hours.

target≈7business daysfrom a sample request to a checked package, by hand
typical7%error tolerance examiners apply to a claims standard — above it, a general business practice
demo742hoursof examiner time billed to the company by 9 Oct — every re-request adds more
Where a sample request’s business days goestimated
By hand7 days
With the solution2 days
  • Reading the request and setting its clock0.5 → 0.1 d
  • Pulling every sampled file and its documents3 → 0.4 d
  • Testing each file against the claims standards1.5 → 0.4 d
  • Writing explanations and the cover letter1 → 0.5 d
  • Checking counts against MCAS and prior answers0.5 → 0.2 d
  • Counsel review, sign-off and submission0.5 → 0.4 d

Estimated split for one 79-file claims sample, by hand and with the solution, in business days.

How it works

How an examiner request moves

Seven specialist agents pull, check and explain every requested file; counsel approves and the exam coordinator submits.

What comes in
Requests in57 requests · call letter, follow-ups, sample lists
Agents at work
Call letter readeritems · owner · due
Then
File puller
Answer drafter
Then
Standards pre-checker7% tolerance · repeats
Consistency checkeragainst MCAS
Then
Response drafterexplanations
A person decides
Exam coordinatorsubmits after counsel and manager sign off
What comes out
Checked response package
Explanations before the examiner asks
MCAS reconciliation
One case, step by step

One examiner request, from sample list to submitted

Harrow Ridge Mutual is on day 6 of fieldwork in a targeted market conduct exam by the Ohio Department of Insurance. The examiner-in-charge has asked for 79 homeowners claims closed without payment, due Thursday. Here is what happens, screen by screen, in the working solution.

  1. 01Mon 12 Oct · 10:40

    The whole exam on one screen

    Nora Lindqvist · Exam coordinator

    Nora opens the request room, not a to-do list. The exam’s life runs across the top — call letter 21 Sep, fieldwork 5 Oct to 11 Dec, draft report Feb 2027 — and under it all 57 requests by exam area, each with its owner, its business-day clock and one cell for every file or answer it needs. 34 submitted, 11 due this week, 0 late.

    “Please replace 4 claim numbers in the list sent 7 Oct — they were closed with payment. The due date is unchanged: Thursday 15 October.” — Paul Okonkwo, CIE, 09:55

  2. 02One click

    R-23 starts filling, file by file

    Call letter reader · File puller

    R-23 asks for homeowners claims closed without payment, a sample of 79. Nora presses Fill R-23. The call letter reader reads the corrected sample list — 4 claim numbers replaced, due date unchanged — and counts 5 business days to Thu 15 Oct, with Columbus Day skipped. The file puller brings each file in from the claim system, the policy system and the agency mailbox: notes, letters, payments, photos. The 79 cells turn blue as they arrive.

  3. 03File 38 of 79

    One file turns amber

    Standards pre-checker

    As each file is tested, its cell turns green or amber. File 38 is HO-24-118406, the Amundsens’ water claim in Westerville. The claim system says it was acknowledged in 7 days. The pre-checker counts from the day the insureds called their agent, Kessler & Vance, on 4 March 2024 — and that is 18 days.

    “Late acknowledgement · 18 days, limit 15. Acknowledged 18 days after the insured called the agent (Kessler & Vance, 4 Mar 2024); the claim system shows 7.”

  4. 04Tested

    Every file tested the way the examiner will

    Standards pre-checker

    79 files, 782 documents, 73 clean and 6 with an issue — each standard against the 7% claims tolerance. Acknowledgement within 15 days: 3 of 79 (3.8%). Decision within 21 days of proof of loss: 0. Status letter every 45 days: 1 of 79 (1.3%). Denial cites the policy provision: 2 of 79 (2.5%) — two free-form letters, and a repeat of the 2022 exam’s finding 3.

    The pre-checker explains and routes; it never concludes that an exception is a violation.

  5. 05The file

    Two clocks, and the email that proves the date

    Nora Lindqvist · Exam coordinator

    The sampled file opens on its timeline: the call and email to the agent on 4 Mar, the agency entering the claim on 15 Mar, the acknowledgement letter on 22 Mar, inspection, proof of loss, and the denial on 16 Apr citing Section I Exclusion 2.c.(6). The agent’s email sits beside it with the margin note: under Model 902 §6A, notification to an agent is notification to the insurer.

  6. 06Before submission

    The explanation, drafted before the examiner asks

    Response drafter

    The response drafter writes the company’s explanation from the file and the fix already made: since 1 July 2025 agents report claims through the direct first-notice line, and late acknowledgements on agent-reported homeowners claims fell from 4.1% to 0.6%. It cites the agency email, the first-notice record, procedure CP-03 and the acknowledgement report. Teresa Whitlock confirms the facts; Nora sends it to counsel.

    The draft is marked Draft. It never goes to the examiner on its own.

  7. 07Checked

    The count against MCAS, before the examiner compares them

    Consistency checker

    R-23 says 1,391 homeowners claims closed without payment in 2024; the MCAS filing says 1,427. The consistency checker finds why: 36 claims were reopened and closed again in 2024, and MCAS counts each closure. The 36 claim numbers go in the package. Elsewhere it finds a real contradiction — the complaint register is 7 short of the department’s count — and sends that one to counsel.

    Never changes a number to make it agree.

  8. 0811:12 · 11:16

    Counsel approves, the manager signs off

    Daniel Ferro · Regulatory counsel

    Daniel approves the three explanations at 11:12; Ifeoma Adeyemi, the market conduct manager, signs off the package at 11:16. Only then does Submit to the examiner light up. The package goes to Paul Okonkwo through the department’s exam portal: 79 claim files and 782 documents, a cover letter with 6 self-identified issues and 3 explanations, and the MCAS reconciliation of 36 claims.

  9. 0911:20 · 3 business days early

    Submitted, and back to the list

    Nora Lindqvist · Exam coordinator

    Nora submits R-23 at 11:20 on Monday, three business days before it is due. The request room now counts 35 submitted, with the agents’ run kept beside it, step by step.

  10. 10When a criticism lands

    Agree, disagree or explain — said once, from the file

    Daniel Ferro · Regulatory counsel

    When the examiners write a criticism, it arrives with its draft response. C-03 says 3 of 50 complaints were answered to the department after 21 days. The draft agrees, explains the mailbox routing during a system change, cites the complaint files and procedure CH-01, and commits to a daily check of the department mailbox by 30 Nov 2026. Counsel approves every agree or disagree.

Who it’s for

Built for everyone who answers the examiner.

The same exam, seen by the five people who carry it — what their weeks looked like, and what they look like now.

NL
Nora LindqvistExam coordinator, Harrow Ridge Mutual
Exam coordinator
Before
Runs 57 requests from a spreadsheet and finds out on day ten that a file was wrong.
Now
Watches every request fill in on its business-day clock, with problems flagged and explained before she submits.
IA
Ifeoma AdeyemiMarket conduct manager
Market conduct manager
Before
Holds one rule — nothing goes to the examiner she can’t explain — and checks every package by hand to keep it.
Now
Signs off a package that already shows each standard against tolerance, every exception explained and the MCAS reconciliation.
DF
Daniel FerroRegulatory counsel
Regulatory counsel
Before
Writes criticism responses under deadline and checks they say the same thing as the 2022 answers.
Now
Approves cited drafts — agree, disagree or explain — with contradictions against earlier answers sent to him first.
TW
Teresa WhitlockClaims compliance director
Claims subject expert
Before
Pulls adjusters off their claims to gather 79 files for one request.
Now
Confirms the facts on a file the agents already pulled, tested and explained.
GH
Gregory HainesChief Compliance Officer
Chief Compliance Officer
Before
Learns of a repeat finding from 2022 when the draft report arrives.
Now
Sees the repeat flagged during fieldwork, with the remediation dated before the draft report.
Built on the engine

7 agents. Each with one job, and hard limits.

Seven specialist agents pull, check and explain every requested file; counsel approves and the exam coordinator submits.

Call letter reader

Turns the call letter and every follow-up into requests with exam areas, owners and business-day due dates, counted with the state holiday calendar.

  • Due dates only from the examiner’s words
  • Ambiguous requests go to the coordinator
File puller

Pulls each sampled claim, complaint or policy file — notes, letters, payments, photos, estimates and agency mail — into the package, every document numbered with its source.

  • Read-only on every source system
  • Only files in the sample and the exam period
Standards pre-checker

Tests every sampled file against the standards the examiners use and the state rule — acknowledgement from the earliest notice, decision, status letters, denial wording, payment — with the error rate against tolerance and repeats of prior findings.

  • Explains and routes; never concludes a violation
  • Every result cites its passage
  • Shows the tolerance and the count
Answer drafter

Drafts narrative answers from past exam responses, procedures and manuals, using the version in force during the exam period and saying when it changed.

  • No sentence without a source
  • Every answer stays a draft until the manager signs off
Consistency checker

Compares every count and ratio given the examiners with the MCAS filings, other requests in the exam and prior exam answers — agree, explained or contradicts.

  • Never edits a figure
  • Contradictions go to counsel
Response drafter

Drafts explanations of self-identified exceptions and responses to examiner criticisms — agree, disagree or explain — with the fix and its proof.

  • Counsel approves every admission or dispute
  • Never sends to the examiner
Clock keeper

Counts business days to every open request each morning, warns the owner and the coordinator two business days out, and drafts extension requests to the examiner-in-charge.

  • Never asks the examiner for an extension without the coordinator
Exam coordinator

Submits; counsel approves exceptions; the manager signs off. The agents propose; a named person decides.

Ask in plain words

Ask about any request, file or answer

The coordinator, the manager and counsel can ask about anything in the exam in plain words — or tell it what to change. Every answer points to its source.

Why was HO-24-118406 flagged?

Late acknowledgement: 18 days, the limit is 15. The Amundsens called and emailed their agent, Kessler & Vance, on 4 Mar 2024; the agency entered the claim on 15 Mar, and the letter went on 22 Mar. Notice to the agent is notice to the company, so the examiner will count 18. The explanation is drafted with the 2025 fix — late acknowledgements on agent claims fell from 4.1% to 0.6%.

Which requests could miss their due date?

One is at risk: R-41 nonrenewal notices, due Wed 14 Oct — the missing proof of mailing for NR-25-04417 is not yet explained. A one-day extension request for Paul Okonkwo is drafted and waits for you. The other 10 due this week are on track.

Do our numbers agree with what we filed in MCAS?

Six of ten agree exactly and three are explained. R-23’s 2024 count is 36 below MCAS because claims reopened and closed again count twice in MCAS. One contradicts us: the complaint register is 7 short of the department’s count, against our 2022 answer — that one needs Daniel Ferro.

Check every sample for a repeat of the 2022 findings

Done. The 2022 report’s finding 3 was denials without the policy provision. Re-testing the letters in R-18, R-19, R-20 and R-24 found one more free-form letter in R-24, AU-25-208114, that names no section. The explanation is drafted, and R-24 now shows 3 issues.

Every screen

The working solution, as it ships.

12 screens from the working solution, on its sample data. Pick one to see it large.

The request roomThe exam timeline, then every request by area with its owner, business-day clock and one cell per file or answer.
A sample filling inR-23’s 79 cells fill as files are pulled and tested; file 38 turns amber with its explanation already drafted.
The request packageThe examiner’s request, the 79 files, each standard against the 7% tolerance, the response package and sign-off.
A sampled fileThe claim timeline with both clocks, the agent’s email with its margin note, the standards tested and the drafted explanation.
Submit to the examinerCounsel approved and the manager signed off — the package goes through the department’s exam portal.
Submitted earlyR-23 submitted three business days before it was due; the request room counts 35 submitted, with the agents’ run beside it.
The exam at a glancePhases, requests received against submitted, scope and people, examiner hours billed against budget, and the AI systems questions.
Consistency checkEvery number given the examiners against MCAS, the department’s own counts and the 2022 answers — agrees, explained or to counsel.
Examiner criticismsEach criticism with its draft response — agree, disagree or explain — its sources and the files behind it.
RemediationCommitments from the 2022 exam and this one on one timeline, with the repeat finding reopened.
Answer libraryPast exam answers, procedures, manuals and filings the agents quote, with the version in force and how many answers quote each.
Your exam’s rulesBusiness-day clocks, owner warnings, extension requests and the tolerance for each standard the pre-checker tests.
Governance

Built for regulated work: cited, approved by counsel, on the record.

Every answer cites its sourceEach answer, explanation and pre-check result points to the document and passage it rests on — the agent’s email, the first-notice record, the procedure in force at the time.
Source systems are read, never changedThe agents read the claim, policy and complaint systems read-only, and only the files in the sample and the exam period.
Nothing goes out without peopleThe market conduct manager signs off every package and the exam coordinator submits it through the department’s exam portal. Agents read, pull, check and draft — they never submit or approve.
Counsel owns every admissionAny response that admits or disputes an exception, and every reply to an examiner criticism, needs regulatory counsel’s approval first.
Numbers are explained, never adjustedThe consistency checker never changes a figure to make it agree with MCAS or a prior answer. It finds the reason, or sends the contradiction to counsel.
Every step on the recordThe activity trail records who pulled, drafted, changed, approved and submitted what, and when. Exam data stays with the company; examiners see only what is submitted.
Configuration

Your exam’s rules, not ours

Clocks, tolerances, sign-off and owners differ by state and by exam. Each one is a setting.

SettingDefaultChoose from
Count due dates inBusiness days, Ohio calendarBusiness days, Ohio calendar · Calendar days
Warn the owner2 business days before1 · 2 · 3 business days before
Draft an extension requestWhen a request is at riskWhen a request is at risk · Never
Acknowledgement within 15 daysTolerance 7%, counted from the earliest noticeTolerance 5 · 7 · 10%
Complaint answered to the department in 21 daysTolerance 10%Tolerance 5 · 10%
Signs off every response packageIfeoma AdeyemiIfeoma Adeyemi · Gregory Haines
Approves explanations and criticism responsesDaniel FerroDaniel Ferro
Submits through the department’s exam portalNora LindqvistNora Lindqvist · Ifeoma Adeyemi
Connections

Works with the systems you already run

Call letters and follow-upsfrom the examiner’s email and the exam portal
Claim systemnotes, letters, payments, photos and estimates
Policy and complaint systemspolicy files, nonrenewals and the complaint register
Agency mailboxnotices the insured gave the agent
MCAS filings and prior examsthe numbers and answers already on record
Procedures and manualswith the version in force during the exam period
What it changes

The difference, in numbers.

Every figure is labelled: a target the solution is built to, an estimate, a typical published result, or a proven one.

target
2days
from a sample request to a checked package
By hand≈ 7 business days
With agents≈ 2 days
target
100%
of sampled files pre-checked against the claims standards
79 of 79 files
before submission
typical
7%
error tolerance examiners apply to a claims standard

“demo” = seen in the working solution, on its sample exam data · “target” = the design goal, measured in the live solution · “estimated” = our estimate · “typical” = published figures (NAIC Market Regulation Handbook — 7% error tolerance on claims standards; the claims timelines follow the NAIC Unfair Property/Casualty Claims Settlement Practices Model Regulation #902 §§6–7). People, companies, insureds, agencies and examiners named on this page are fictional — characters and sample data in the working solution.

Questions

What market conduct teams ask us.

What is market conduct exam management software?

Software that runs a market conduct examination from the call letter to the closing report: every examiner request tracked with its owner and due date, the files and answers gathered, and responses to criticisms and remediation kept on record. Market Conduct Exam Management adds agents that pull each sampled file, test it against the standards the examiners use, and draft cited answers and explanations.

How does it test sampled claim files?

The standards pre-checker tests each file for acknowledgement within 15 days counted from the earliest notice — including notice to an agent — a decision within 21 days of proof of loss, a status letter every 45 days, a denial that cites the policy provision, and payment within 30 days of agreement. It shows the error rate for each standard against its tolerance and flags repeats of prior exam findings.

Does it decide whether something is a violation?

No. The pre-checker explains and routes; it never concludes that an exception is a violation. Any response that admits or disputes an exception needs regulatory counsel’s approval, and the market conduct manager signs off every package before the coordinator submits it.

How does it check our answers against MCAS?

The consistency checker compares every count and ratio given the examiners with your MCAS filings, other requests in the exam and prior exam answers, and marks each one agrees, explained or contradicts. It never changes a number to make it agree; contradictions go to counsel.

How are due dates counted?

In business days, with the state’s holiday calendar — Columbus Day was skipped in the sample exam. The clock keeper warns the owner and the coordinator two business days out and drafts an extension request to the examiner-in-charge only when the coordinator agrees.

Can it answer examiner criticisms?

It drafts them. Each criticism arrives with a draft response — agree, disagree or explain — built from the files, the procedure in force and the remediation already made, with its sources listed. Counsel approves every agree or disagree, and nothing is sent by an agent.

Does it touch our claim or policy systems?

It reads them, read-only, and only for files in the sample and the exam period. Every pulled document keeps its source, and the activity trail records who pulled, drafted, approved and submitted what.

How long does it take to go live?

The Agentic Solution Engine builds and deploys it from your requirements — your procedures, letter templates, prior exam reports and MCAS filings — and it goes live once every quality gate has passed. We will walk you through it on a call letter and a claims sample of your own first.

See it on
your next exam.

We’ll run Market Conduct Exam Management on a call letter and a claims sample of your own.