Insurance Agency – Records Retention
1) the identity of each person who transacted the insurance,
2) all binders showing the names of the insured and insurer, the nature of the coverage, and the effective and termination dates as well as premium,
3) a copy of the application or memorandum requesting the insurance, and
4) correspondence, notes, memoranda and other records.
Under the broader rule of Title 10 California Code of Regulations section 2190.2, certain information must be kept for every insurance transaction for five years. There are 18 items of information, which include the parties, particulars of the policy and information about what payment was made and how it was handled by the agent (including banking information). Although whole files do not have to be maintained for the five years, this information must be traceable back to whatever source documents were used to assemble the information.
The main areas of concern when the Department wants to inspect a file are typically appropriate handling of premium monies and the presence of signatures on carrier forms. CA License Blog
Records are to be maintained for a minimum of five years after the expiration or cancellation of the policy in question. Good sense dictates that you maintain your records for up to 10 years if economically and practically feasible. Of course, the average agent or broker will not maintain his/her records in perpetuity. Nevertheless, retaining your files for 8 to 10 years is not only suggested but advised as a means to cut off potential E&O claims and to assist existing insureds. Rough Notes.com
Also, if an insured is over age 65 and the policy is solicited or sold through a house call, the mandated advance notice of that visit should be kept in the file.CA License Blog I don’t think he’s quite right
Our webpage on Scope of Appointment for Medicare Advantage
Introduction to Health Care Reform by Steve Shorr