Colorado Life Producer License Practice Test

How long must a producer keep a copy of a signed disclosure statement regarding additional fees?

1. 1 year from the date of completion of services

2. 2 years from the date of completion of services

3. 3 years from the date of completion of services

4. 5 years from the date of completion of services

The correct answer is: 3 years from the date of completion of services

The requirement for a producer to keep a copy of a signed disclosure statement regarding additional fees is set at three years from the date of completion of services. This time frame is established to ensure that there is a clear record available for reference should any disputes or inquiries arise regarding the fees disclosed to clients. Retaining documentation for this period aligns with best practices in record-keeping and regulatory compliance, providing protection both for the client and the producer. It allows for the enforcement of regulatory standards and fosters transparency in financial transactions in the insurance industry. Proper record retention helps producers demonstrate that they have met their obligations concerning disclosures, ensuring accountability and trust in their business practices.