When can an Examination of Books and Records be conducted?

The option stating that an Examination of Books and Records can be conducted during the policy period and up to three years after expiration is correct because it aligns with standard practices in the insurance industry. Insurers have the right to examine the insured's books and records not only throughout the duration of the policy but also for a specified period after the policy has ended. This timeframe allows the insurer to verify the accuracy of information reported by the insured, assess risk, and ensure that the correct premiums were charged based on actual exposure and loss experiences.

This examination is crucial for maintaining the integrity of the insurance process, facilitating accurate underwriting and ensuring compliance with policy terms. The three-year period post-expiration is commonly established as it provides a balance for insurers to conduct necessary audits while respecting the operational capacity of businesses that may need to manage their records over time.