Is It Required To Maintain Signed Applications Even When the Carrier Allows Electronic Signatures?
Question: “Does New York State require us to maintain signed applications in our management system, specifically for the companies that allow e-signatures from their websites?”
Answer: New York State insurance laws and regulations do not require you to keep copies of applications at all. The only records agents and brokers are required to maintain are signed service fee agreements, producer compensation disclosures, and premium account records, each for three years.
It is a good E&O loss prevention practice to maintain copies of applications and other client records for seven years, as the statute of limitations fur suing an insurance agent or broker in this state is six years. If you insure any accounts with long-tail exposures, you may want to keep copies of their policies indefinitely. See:
How Agency Management Systems Can Help Defend E&O Claims
More information is available on the Record Retention page in the Answer Center of our website.
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