What is the typical extent of the examination conducted for alien insurers?

The correct response highlights that the examination of alien insurers typically focuses solely on transactions occurring within the U.S. This is crucial because alien insurers are those that are incorporated or chartered under the laws of another country but operate in the United States. Regulatory bodies in the U.S. are primarily concerned with ensuring that these insurers comply with American insurance laws and regulations, protecting U.S. consumers and financial stability.

By concentrating on U.S. transactions, regulators can assess the alien insurer's compliance with local practices, solvency requirements, and overall financial health based specifically on their U.S. operations. This approach helps maintain oversight and ensures that the insurer meets applicable state laws while conducting business in the American market.

The other options do not align with the standard practices for auditing alien insurers, as they either include irrelevant transactions or focus on broader scopes that could dilute the regulatory focus necessary for consumer protection in the U.S.