For how long must every insurance agent/broker maintain their records and documents for insurance transactions?

In North Carolina, insurance agents and brokers are required to maintain records and documents related to insurance transactions for a period of five years. This requirement ensures that there is a documented history of the transactions that can be reviewed in the case of disputes, audits, or regulatory inquiries. Retaining records for five years helps to protect both the agents/brokers and their clients, providing a clear trail of all interactions and transactions that have taken place.

Maintaining records for the specified duration also aligns with best practices in the insurance industry, allowing for sufficient time to address any issues that may arise after a policy is sold or a claim is made. The five-year window balances the need for adequate documentation while avoiding excessive retention of records that may no longer be relevant.