Illinois Insurance State Practice Exam

How long must a carrier maintain detailed claims records under Regulation 919?

1. Current year only

2. Current year and previous year

3. Current year and previous two years

4. Five years

The correct answer is: Current year and previous two years

A carrier must maintain detailed claims records for the current year and the previous two years to comply with Regulation 919. This requirement is set to ensure that insurance companies have adequate documentation available for review, audit, and any potential claims disputes. By retaining these records for a three-year period, regulators can efficiently assess the claims practices of the insurer, ensure that they are compliant with industry standards, and protect the interests of policyholders. This practice also enables insurers to effectively manage claims and provide necessary information when resolving issues that may arise after a claim is filed. Hence, maintaining detailed claims records for three years strikes a balance between operational efficiency and regulatory accountability.