Which statement regarding an examination of an insurer's books and records by the Director is TRUE?

The statement that the insurer must not impede the examination is true because it aligns with the regulatory and legal framework governing insurance practices. When the Director conducts an examination of an insurer's books and records, it is essential that the insurer cooperates fully to ensure compliance with laws and facilitate a thorough review. This cooperation helps maintain transparency and accountability within the insurance industry.

The requirements for insurers to provide access to their records and not to hinder the examination process are established to protect the interests of policyholders and ensure that insurers are operating within the legal guidelines. By preventing any obstruction, the Director can accurately assess the financial health and operational practices of the insurer, contributing to the overall stability and integrity of the insurance market.

Other options may imply certain allowances or focus on specific types of insurers or records, but they do not reflect the universal obligation of insurers to cooperate fully with regulatory examinations. This foundational principle is crucial for the oversight functions of insurance regulators.