When can the Director audit and inspect the books of a title insurer or agent?

The Director has the authority to audit and inspect the books of a title insurer or agent during regular business hours. This provision is rooted in the need for oversight and regulation to ensure that title insurers and agents are operating in compliance with state laws and regulations. Conducting audits during regular business hours allows for the necessary transparency and cooperation between the auditors and the title companies while ensuring that business operations can continue fairly unimpeded. Conducting audits outside of these hours could potentially disrupt the normal functioning of the business and may not yield the necessary cooperation from employees who are not present at that time.

This regulation reflects the balance between the enforcement of compliance standards and the practicalities of conducting business in the title insurance industry. Therefore, having the audit process confined to regular business hours supports the integrity of the auditing process and respects the operational structures of the title entities being inspected.