How long must insurers retain copies of illustrations used in selling life insurance policies?

Insurers are required to retain copies of illustrations used in the sale of life insurance policies for a mandated period of time to ensure compliance with regulatory standards and to provide a means of verification if there are any disputes or inquiries related to the policy sold. Retaining these copies for three years after the policy expires serves as a reasonable timeframe to address potential issues that may arise and maintains accountability for the representations made during the sales process.

This three-year retention period also aligns with industry practices regarding documentation for financial transactions and customer interactions, ensuring that insurers have adequate records to support their business activities and to adhere to state regulations that may dictate the duration that records must be kept. By retaining these illustrations, insurers support transparency and maintain trust with policyholders, which is a critical aspect of life insurance operations.