How many years back do you keep client paperwork?

Jan 14, 2019

  1. Jazz10
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    Wondering if I can purge files to make room.
     
    Jazz10, Jan 14, 2019
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  2. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    10 years.

    However, check with your company's compliance or other resources for their guidelines. If you have multiple companies, whoever lists the longest time-frame would be my standard.
     
    DHK, Jan 14, 2019
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  3. VolAgent
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    As long as the relevant regulator says to keep it.
     
    VolAgent, Jan 14, 2019
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  4. Jazz10
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    What about clients who canceled and went elsewhere for coverage?
     
    Jazz10, Jan 14, 2019
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  5. VolAgent
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    Typically, that is when the clock actually starts, when coverage terminates. You should never destroy files for an active policy.

    Again, go to the website for your state DOI and find the rule or call them. 7 and 10 are pretty standard numbers, however your state may be different. If you answer to a compliance department, then go by what they tell you. While an assumption, they should have done the legwork to comply with state laws and regulations on retention.
     
    VolAgent, Jan 14, 2019
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  6. FEX Quotes
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    FEX Quotes Guru

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    I was having this discussion with another agent a few weeks ago and learned that Progressive Insurance requires PA agents to maintain signed apps FOREVER
     
  7. VolAgent
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    A little excessive perhaps, although with cheap data, if you scan everything you really can. However, it is also a liability to keep that much data.

    Now to throw some more doubt on this.

    In many states, a minor has a limited window to sue after turning 18. So, your insured causes injury to a minor and the parents settle. Well, in some states that new adult has a year or more to sue after turning 18. I believe in Tennessee it is minors may sue their parents, however some states do not have such a restriction and it can be the person who was originally liable.
     
    VolAgent, Jan 16, 2019
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  8. Life Hawk
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    Scan your apps, save your emails and any correspondence to that clients file, have an active client file and a inactive client file.

    When you wish to purge, shred the paper but save the electronic. You can save a ton info on a terabyte stand alone hard drive.

    It's taken me years to figure this out and I'm not the guru I would like to think I am yet.
     
  9. Todd King
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    Todd King IMO/FMO Owner

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    Along with some of the other suggestions, you can always use cloud storage. Plenty of room there.
     
  10. Life Hawk
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    I keep my files as local as possible so that any breaches are not on my end.
     
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