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An insurance producer is required to maintain the usual and customary records pertaining to authorized transactions for how long?

A) 1 year
B) 3 years
C) 5 years
D) 10 years

1 Answer

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Final answer:

An insurance producer must retain records for a duration specified by state law, often 3 or 5 years. The exact period can vary by jurisdiction, and it is crucial for producers to know their specific state's requirements.

Step-by-step explanation:

An insurance producer is required to maintain the usual and customary records pertaining to authorized transactions for a specific period of time as regulated by state law or regulation. While the correct answer may vary by jurisdiction, a typical time frame for record retention is either three or five years after the policy expires or the transaction is completed. For example, option B) 3 years is a common requirement, but this can differ in some areas. It is vital for insurance producers to be aware of and comply with their specific state's regulations regarding record retention.

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