Colorado Life Producer License Practice Test

How long must all insurance companies maintain their business records?

1. Current year only

2. Current calendar year plus 1 prior year

3. Current calendar year plus 2 prior calendar years

4. 5 years

The correct answer is: Current calendar year plus 2 prior calendar years

Insurance companies are required to maintain their business records for a specified period to ensure compliance with regulatory and legal obligations. In Colorado, this duration is established to enhance transparency and accountability within the insurance industry. The correct answer indicates that records must be maintained for the current calendar year plus two prior calendar years. This means that at any point, an insurer must have on hand documentation for the current year in addition to the two preceding years. This policy serves several purposes, including enabling regulators to review the business practices and financial solvency of insurance providers and assisting consumers in resolving disputes or claims related to policies that may not need immediate access to records from further back in history. Having this framework in place helps to ensure that records are accessible for audits, investigations, and claim verification, while also aligning with standard practices across many states. Thus, maintaining records for the current year plus two prior years is a regulatory measure intended to support consumer protection and industry integrity.