How long must files regarding declined insurance coverage be maintained?

Files regarding declined insurance coverage must be maintained for a duration of three years. This requirement ensures that adequate records are available for regulatory review and compliance, allowing for scrutiny in case of any disputes or claims that may arise from the declined applications. Maintaining these records for an adequate period helps to provide transparency in the underwriting process and can assist in verifying decisions made during the evaluation of applicants.

The three-year timeframe is specifically established to balance the need for proper documentation with practical considerations of storage and relevance of the information. After this period, the likelihood of needing to reference declined applications diminishes, making it reasonable for organizations to dispose of these records while still complying with legal and regulatory expectations.