The question is: how long should agents keep records of insurance transactions? Generally, agents must retain all records associated with an insurance transaction for at least five years. after that, these records can be audited by the commissioner at any time.
With respect to a motor vehicle liability policy, the law requires the agent to retain any copies of the policy and other related documents issued to the policyholder for as long as the insurance company has renewed the policy. sure.
Essentially, this requires the agent to keep policy records and other related documents for more than 20 years. but this rule does not apply to all motor vehicle policies as there is an insured driver coverage requirement for those particular policies.
All policies are subject to a record keeping requirement. But again, it’s best for the agent to keep records of the policy for as long as the insurance company is renewing the policy. Let’s discuss more about this below.
what records should be kept?
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As prescribed by the insurance code, private records are expected to be properly kept and maintained. For example, agents and brokers must keep the following records for at least five years after the cancellation or expiration date of an insurance policy:
- policy number
- name of insurer and insured
- effective dates, cancellation and termination of coverage
- name of the person(s) to whom the commission or any other consideration related to an insurance transaction is promised or will be received
- amount of commission, net premium and gross premium
- amount of premium received
- the date the premium is deposited into the trust account
- the date the premium payment was received by the broker or agent
- account number, address and name of the bank where the premium is deposited
- amount of gross and net premium returned
- the date the gross performance premium is paid to the person to whom it is entitled
- the date the broker or agent receives the premium back from the insurer
- a copy of the insurance application
- identification of each person involved in the insurance transaction
- any correspondence sent and received, including records such as a note of the conversation that may describe the transaction
- records of all oral or written binders, indicating the names of the insurer and the insured, the premium of the policy or binder issued, the nature of the coverage, and the termination or effective dates of the policy
Accordingly, the agent or broker is expected to maintain certain records for a minimum of 18 months. Below is the list of prescribed records to be kept during that time period.
Any documents related to surplus lines, including the disclosure statement and diligent search form, should be retained for approximately 5 years from the date of cancellation or expiration of an insurance policy. moreover, the person who signed it must keep the original copy of the disclosure statement and the diligent search form.
How long must agents keep records of insurance transactions?
So how long must agents keep records of insurance transactions? many people fear keeping records. Though tedious to do, record keeping is necessary for any business career or industry to be successful. therefore, it is essential for insurance agents and brokers to master record retention.
Many states require brokers and agents to keep records for a specified period. furthermore, those records must be open for examination and expectation by the state insurance commissioner. this should also be available in the department requested an inspection. If an agent fails to maintain any of the documents, he may be subject to regulatory penalties, such as license revocation.
Under the Georgia Insurance Code, agents are required to keep records of any transaction for 5 years from the term of the insurance contract or completion of a transaction.
where are those logs kept?
All records must be kept at the broker’s main or principal office, unless otherwise authorized by the doi. those records should also be kept so that any information is easily accessible in the event of an examination or inspection.
One year after policy termination or cancellation, records may be kept off-site. this should be easily recoverable within two ordinary business days. The agent may also keep the identified records at the broker’s main office or the agent at a secondary office for as long as the DOI approves. therefore, before keeping the records in another office, it is subject to the approval of the doi.
it’s a wrapper!
Now you know how long agents must keep records of insurance transactions. As a general rule, any information related to an insurance transaction must be kept by the agent for five years.
every insurance agent must follow record keeping requirements so that it is easy to obtain any necessary information when needed. the same is true when those records are subject to inspection.