State RegulationsMA specificDifficulty 1/5
What obligation does Massachusetts law place on insurance producers regarding the records of their insurance transactions?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
M.G.L. c. 175, § 149R requires insurance producers to keep records of their insurance transactions and to make them available for examination by the Massachusetts Division of Insurance. The retention duty belongs to the producer, not just to appointing insurers, and it does not end when premiums are remitted — the records must be retrievable when the Division asks.
Why the other options are wrong
- A) Records are not disposable on remittance; M.G.L. c. 175, § 149R requires producers to retain transaction records for Division examination.
- C) The retention duty rests on producers as well as insurers; M.G.L. c. 175, § 149R does not let producers outsource the obligation entirely.
- D) Records need not live solely in an insurer's home-office systems; the producer must hold its own records available under M.G.L. c. 175, § 149R.
Memory hook
Keep the book open — records-retention law holds your files on call for the Division.