Page 1 of 31
Record Keeping Requirements Exam 2026–
2027 | Comprehensive Question Practice
Test with Answers & Rationales| Free Pdf
Access
1. The term “record” under most insurance record keeping laws
includes:
a) Only paper documents
b) Only electronic files
c) Any document – paper, electronic, audio, video, or email –
created or received in a transaction
d) Only signed contracts
Answer: c) Any document – paper, electronic, audio, video, or
email – created or received in a transaction
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Rationale: Modern definitions are medium-neutral (NAIC model,
GLBA, HIPAA).
2. The minimum record retention period for insurance producer
transaction records (general rule) under NAIC model is:
a) 1 year
b) 3 years
c) 5 years
d) Permanently
Answer: c) 5 years
Rationale: NAIC Producer Licensing Model Act § 18 – records of
insurance transactions must be kept for at least 5 years.
3. True or False: Destroying records before the legal retention
period expires is permissible if the insured consents in writing.
Answer: False
,Page 3 of 31
Rationale: Retention periods are set by regulation; insured
consent does not override statutory requirements.
4. HIPAA requires covered entities to retain documentation of
privacy policies and procedures for:
a) 2 years
b) 6 years from creation or last effective date, whichever later
c) 10 years
d) Permanently
Answer: b) 6 years from creation or last effective date,
whichever later
Rationale: 45 CFR § 164.530(j) – retention of privacy
documentation for 6 years.
5. Under the Fair Labor Standards Act (FLSA), payroll records
must be kept for:
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a) 1 year
b) 3 years
c) 5 years
d) 7 years
Answer: b) 3 years
Rationale: FLSA § 211(c) – 3 years for payroll; 2 years for
basic time records.
6. The Sarbanes-Oxley Act (SOX) requires public companies to
retain audit workpapers for:
a) 5 years
b) 7 years
c) 10 years
d) Permanently
Answer: b) 7 years
Rationale: SOX § 802 – audit records must be kept for 7 years.
Record Keeping Requirements Exam 2026–
2027 | Comprehensive Question Practice
Test with Answers & Rationales| Free Pdf
Access
1. The term “record” under most insurance record keeping laws
includes:
a) Only paper documents
b) Only electronic files
c) Any document – paper, electronic, audio, video, or email –
created or received in a transaction
d) Only signed contracts
Answer: c) Any document – paper, electronic, audio, video, or
email – created or received in a transaction
,Page 2 of 31
Rationale: Modern definitions are medium-neutral (NAIC model,
GLBA, HIPAA).
2. The minimum record retention period for insurance producer
transaction records (general rule) under NAIC model is:
a) 1 year
b) 3 years
c) 5 years
d) Permanently
Answer: c) 5 years
Rationale: NAIC Producer Licensing Model Act § 18 – records of
insurance transactions must be kept for at least 5 years.
3. True or False: Destroying records before the legal retention
period expires is permissible if the insured consents in writing.
Answer: False
,Page 3 of 31
Rationale: Retention periods are set by regulation; insured
consent does not override statutory requirements.
4. HIPAA requires covered entities to retain documentation of
privacy policies and procedures for:
a) 2 years
b) 6 years from creation or last effective date, whichever later
c) 10 years
d) Permanently
Answer: b) 6 years from creation or last effective date,
whichever later
Rationale: 45 CFR § 164.530(j) – retention of privacy
documentation for 6 years.
5. Under the Fair Labor Standards Act (FLSA), payroll records
must be kept for:
, Page 4 of 31
a) 1 year
b) 3 years
c) 5 years
d) 7 years
Answer: b) 3 years
Rationale: FLSA § 211(c) – 3 years for payroll; 2 years for
basic time records.
6. The Sarbanes-Oxley Act (SOX) requires public companies to
retain audit workpapers for:
a) 5 years
b) 7 years
c) 10 years
d) Permanently
Answer: b) 7 years
Rationale: SOX § 802 – audit records must be kept for 7 years.
