Section 26-A3906. MINIMUM RECORD KEEPING REQUIREMENTS

 

3906.1Each licensee shall maintain accurate files, books and records reflecting all insurance-related transactions in which the licensee or his or her employees take part. These records shall be maintained by either separate books of record or by one or more consolidated books of record for a period of five years from the date of the closing of the claim.

 

(a)All books and records shall consist of sequentially numbered pages and shall be maintained in such a manner that they can be produced for examination at any time.

 

(b)Appropriate and required entries shall be made promptly.

 

3906.2Each licensee shall maintain a register of all monies received, deposited, disbursed or withdrawn in connection with a transaction with an insured, including, but not limited to: fees, transfers and disbursements from a trust account; and all transactions concerning, including the balance of, all interest bearing accounts. The minimum information required to be maintained in the register includes the following:

 

(a)The name and location of the financial institution in which the funds are deposited;

 

(b)The account number of the trust or escrow account;

 

(c)The date monies are received, deposited, disbursed or withdrawn;

 

(d)The amount of money received, deposited, disbursed or withdrawn;

 

(e)An itemized record of the allocation of the funds;

 

(f)The name of the insured, insurance producer, insurer or other account to or from whom monies are disbursed or received;

 

(g)The claim number assigned by the insurer;

 

(h)The receipt number, when available; and

 

(i)The method of payment, such as, cash, check, money order or draft.

 

3906.3For each disbursement, the number of the check shall be recorded in the register.

 

3906.4All entries for receipts and disbursements shall be supported by evidential matter as provided in § 3906.2 (b) and (c). The evidential matter shall be referenced in the entry so that it may be traced for verification.

 

3906.5Each licensee shall prepare and maintain a monthly reconciliation of the trust account.

 

3906.6Each licensee shall maintain a file for each claimant with whom a contractual relationship has been established. The minimum items required to be maintained in the file include:

 

(a)Correspondence received or sent with respect to any insurance or insurance-related transaction;

 

(b)All of the client's contracts; and

 

(c)All other information related to the claim.

 

3906.7The licensee shall also maintain the following records for a period of five years:

 

(a)Escrow or trust account statements;

 

(b)Names and addresses of all licensees;

 

(c)Copies of all new and renewal applications submitted to the Department by an individual and/or company;

 

(d)All fees received, if not deposited in a trust or escrow account; and

 

(e)All records of transactions with persons or entities owned by the licensee or by one or more of its officers or directors or an owner of 10 percent or more of the licensee that are construction firms, salvage firms or appraisal firms.

 

3906.8Failure to keep, maintain or make available for inspection by the Commissioner, those records which the Commissioner shall require to be maintained in accordance with this section, or any other violations by a licensee, shall constitute a violation of D.C. Official Code § 31-1631.06.

 

source

Emergency Rulemaking published at 50 DCR 5970(July 25, 2003) [EXPIRED]; as Final Rulemaking published at 50 DCR 3191 (April 25, 2003).