For insurance agents, one of the most important questions to ask is: how long must records be kept of insurance transactions? Depending on the type of insurance transaction, the answer can range from a few years to indefinitely. In this blog post, we will explore the different types of insurance transactions and how long records must be kept for each. We will also provide some tips on best practices for record keeping.
What Records Do Insurance Agents Need to Keep?
There are a few different types of records that insurance agents need to keep in order to be compliant with the law. The first type of record is called a “transaction record.” This type of record includes information about the insurance policy, such as the date the policy was purchased, the name of the insured, the policy number, and the premiums paid. Insurance agents are required to keep transaction records for at least three years.
The second type of record that insurance agents need to keep is called a “commission statement.” This type of record includes information about any commissions that were earned from selling an insurance policy. Insurance agents are required to keep commission statements for at least two years.
The third and final type of record that insurance agents need to keep is called a “client profile.” A client profile includes information about the client’s needs and risk factors. Insurance agents are required to keep client profiles on file for at least five years.
-Sales records
Sales records are one of the most important aspects of an insurance agent’s job. They provide a written record of the transaction between the agent and the customer. Without sales records, it would be difficult to track customer satisfaction or identify areas where improvements can be made.
Most insurance companies require agents to keep sales records for at least two years. This gives the company time to review the transactions and make sure that everything was done correctly. It also allows them to see how customers react to different products over time.
Some insurance agents choose to keep sales records for even longer than two years. This can be helpful if there are ever any questions about a particular transaction. Having accurate and up-to-date sales records is essential for providing good customer service and maintaining a successful insurance business.
-Policy records
There are many different types of insurance policies, and each type has its own requirements for how long records must be kept. For example, most health insurance policies must be kept for at least six years after the date of the last transaction. That said, it’s always best to check with your insurance company to find out their specific requirements.
-Claims records
Most insurance companies require agents to keep records of their transactions for at least six years. Some companies may require agents to keep records for a shorter or longer period of time, depending on the type of insurance and the state in which the policy was issued.
How Long Must Agents Keep These Records?
According to the National Association of Insurance Commissioners (NAIC), insurance agents must keep records of all insurance transactions for at least three years. This includes records of both personal and commercial insurance policies.
What Happens if an Agent Loses Records?
If an agent loses records of insurance transactions, the agent may be subject to disciplinary action by the state insurance department. The agent may also be subject to civil liability if the loss of records results in a failure to meet statutory or regulatory requirements.
Conclusion
In conclusion, insurance agents must keep records of all insurance transactions for at least three years. This includes both personal and commercial lines insurance. If an agent is unsure about how long to keep a specific document, it is best to err on the side of caution and keep it for at least three years.
