For how long must the intermediary maintain replacement forms?

The requirement for intermediaries to maintain replacement forms for three years aligns with the regulations set forth in insurance practices. This specific duration is established to ensure that there is a record of the insurance transactions related to replacements, which can be crucial for evaluating claims, compliance, and the overall oversight of insurance activities. Keeping these records for a three-year period provides sufficient time for review and audits, enabling regulators to assess whether the intermediary has adhered to the regulatory standards regarding replacements and to ensure consumer protection.

While other durations such as five years, three months, or twelve months may seem reasonable for record retention, they do not meet the average industry standards established for reviewing replacement forms, which is why three years is deemed appropriate. This time frame balances the need for documentation availability with the operational efficiencies required by insurance intermediaries.