For how many years must files related to closed claims be maintained?

Closed claim files must be maintained for a period of three years. This requirement is in line with various state regulations governing insurance practices, which emphasize the importance of retaining records to ensure accountability, facilitate audits, and provide information if disputes arise in the future. Keeping these records for three years allows insurers to review past claims and helps in maintaining a comprehensive understanding of the claims history within their business, which can be critical for regulatory compliance and risk management purposes. This period strikes a balance between the need for insurers to have access to pertinent historical data while also ensuring that they are not burdened with excessive archival responsibilities over a longer duration.