For how long are insurance companies required to retain records of claims in Massachusetts?

In Massachusetts, insurance companies are required to retain records of claims for at least three years. This retention period is established to ensure that there is adequate documentation available for any potential disputes or needs for reference regarding claims. Retaining records for this duration allows both the insurer and the insured to access crucial information in the event of inquiries, audits, or legal processes that may arise after a claim has been settled.

The other options suggest shorter or longer retention periods that do not align with Massachusetts regulations. A one-year retention would be insufficient to cover the common issues that may arise with claims, while a five-year period, although sometimes seen in different contexts, is not the mandated standard for insurance claims in Massachusetts. An indefinite retention could pose unnecessary storage burdens and is not required under the state's legal framework. Thus, retaining records for at least three years strikes a balance between accessibility and practicality in the insurance industry.