How long must an insurer keep books and records of insurance transactions in the Premium Fund Trust Account?

Insurers are required to keep books and records of insurance transactions in the Premium Fund Trust Account for a minimum of seven years. This duration is in line with regulatory requirements designed to ensure accountability and transparency in financial dealings related to premium funds. Retaining records for seven years allows regulators to audit the accounts and verify compliance with applicable laws and regulations, thus protecting both consumers and the insurers themselves.

Records are vital for assessing financial stability and ensuring that all transactions are properly documented and accessible if questions arise or disputes occur. While some may assume shorter retention periods could suffice, the longer duration reflects the importance of maintaining comprehensive financial histories, especially since insurance transactions can have long-term implications. This seven-year requirement helps to safeguard the interests of policyholders and the industry as a whole.