The Office of General Counsel issued the following informal opinion on November 10, 2005, representing the position of the New York State Insurance Department.
Re: Terminated Insurance Agent Records that an Insurer Shall Maintain.
Question Presented:
What period of time must an insurer retain terminated insurance agent records?
Conclusion:
An insurer's producer licensing records must be kept in accordance with the provisions of N.Y. Comp. Codes R. & Regs. tit. 11, Part 243 (2003) (Regulation 152). Section 243.2(b)(5) of Regulation 152 requires an insurer to maintain terminated insurance agents records for six years.
Facts:
No facts were provided.
Analysis:
Section 243.0 of Regulation 152 states that the purpose of the Regulation is: . . .
to clarify and provide minimum recordkeeping requirements regarding the origin, maintenance and reproduction of information by insurers doing business in this state and certain other entities."
Section 243.1(b) of Regulation 152 defines "records" as meaning "books, records, files, securities, data compilations and other documents."
With respect to producer licensing records, Section 243.2(b)(5) of Regulation 152 provides that:
Except as otherwise required by law or regulation, an insurer shall maintain: . . .
(5) A licensing record for six calendar years after the relationship is terminated for each Insurance Law licensee with which the insurer establishes a relationship. Licensing records shall be maintained so as to show clearly the dates of appointment and termination of each licensee.
N.Y. Comp. Codes R. & Regs. tit. 11, § 243.3 (1996) (Regulation 152) describes the standards for maintenance and reproduction of records. Records and indices of records required to be maintained under the Regulation may be maintained in any durable medium as defined in Section 243.1(c) of Regulation 152. Section 243.2(e) of Regulation 152 requires that records, including a producer licensing record, be readily available and easily accessible to the Superintendent pursuant to N.Y. Ins. Law § 310 (McKinney 2000), that it be in a readable form, and that upon request of the Superintendent, "the insurer shall provide a hard copy of the record, or, if the record is maintained in a medium which is used by the superintendent, the insurer may provide the record in that medium."
For further information you may contact Senior Attorney Robert Freedman at the New York City Office.