According to Indiana law, how long must insurance agents maintain records?

In Indiana, insurance agents are required to maintain records for at least five years after the issuance or termination of a policy. This duration ensures that sufficient documentation is kept available for potential audits, regulatory inspections, or dispute resolutions. The five-year period aligns with general best practices in the industry, allowing insurance providers and agents to have access to necessary information for claims processing, customer inquiries, and compliance with state regulations.

Maintaining records for this length of time provides clarity and accountability within the insurance market, helping to protect both the agents and the policyholders. After five years, the need for readily accessible records diminishes, although some agents may still keep them for personal or business reasons. This requirement reflects a balance between operational efficiency and consumer protection.

By contrast, the other options suggest timeframes that do not align with Indiana's legal requirements. For example, maintaining records for just two years may not provide enough support for handling inquiries or claims that arise several years after a policy has ended. Meanwhile, holding onto records indefinitely or solely based on contractual obligations lacks a defined endpoint and could lead to unnecessary burdens on agents and companies alike. Therefore, the five-year retention period provides a standard framework that is both practical and beneficial to the insurance process in Indiana.