What action can the Board of Directors of the Post Assessment Insurance Guaranty Association take regarding insurers?

The Board of Directors of the Post Assessment Insurance Guaranty Association has the responsibility to oversee the financial health of insurers. One of the key actions they can take is to request examinations of insurers showing financial distress. This is crucial because these examinations help assess the financial stability of an insurer and determine whether it can meet its obligations to policyholders. By closely monitoring insurers, the Board can ensure that financial risks are managed effectively, helping to protect policyholders and stabilize the insurance market.

The other options present actions that either exceed the Board's authority or are not aligned with its primary mission. Increasing insurance premiums or disbanding insurers would typically fall under regulatory agency powers or corporate restructuring rather than the direct actions of a guaranty association. Additionally, releasing insurers from liabilities would undermine the purpose of the guaranty association, which is to provide financial backing to policyholders in the event of insurer insolvency, rather than absolving insurers of their obligations.