Montana State Life Insurance Practice Exam

How long must all viatical records be maintained?

1. 2 years

2. 3 years

3. 5 years

4. 7 years

The correct answer is: 5 years

The correct duration for maintaining viatical records is five years. This requirement is rooted in regulatory standards that aim to ensure proper documentation and accountability in the viatical settlement industry. By maintaining records for this length of time, companies can adequately track transactions, respond to regulatory inquiries, and provide necessary documentation in case of disputes or audits. This period strikes a balance, allowing for effective oversight while also ensuring that records are not kept indefinitely, which could lead to unnecessary storage issues or complications concerning data privacy. Choosing a different duration, such as two, three, or seven years, would not align with the established practices and legal requirements observed in the viatical settlement process, which emphasizes the importance of having accessible records for a sufficiently long time to support transparency and compliance.