For how long must an administrator maintain records of transactions with insurers and insured persons?

The correct duration for maintaining records of transactions with insurers and insured persons is five years. This requirement aligns with regulatory standards that are designed to ensure accountability and transparency in the insurance industry. Storing records for this length of time allows for effective tracking of transactions and provides a window for regulators to review practices in case of disputes or audits.

Maintaining records for five years strikes a balance between efficiency and the need for retention, making it manageable for administrators while complying with regulatory expectations. This period also serves to protect both the insurer and the insured, safeguarding against potential misunderstandings or discrepancies.

While some other timeframes could be proposed based on various contexts, five years is a standard approach within the insurance practice that helps ensure sufficient safeguard and oversight of business activities.