For how long must every insurance agent maintain records related to each insurance transaction?

Insurance agents are required to maintain records related to each insurance transaction for a minimum of five years. This duration is established to ensure that there is a sufficient period to review transactions for any potential audits, disputes, or regulatory compliance issues that may arise. By saving records for this length of time, agents can provide necessary documentation when questioned by clients, insurance companies, or regulatory bodies.

Additionally, keeping records for five years aligns with typical business practices, allowing agents to manage their professional activities effectively. These records can include various documents such as applications, policy changes, correspondence, and payment records, all of which may be essential for both ongoing client relations and legal requirements. Maintaining records for this specified duration is crucial for supporting the agent's business and safeguarding their professional integrity.