PLCaliforniamedium
A California Personal Lines Broker-Agent bound an HO-3 on a home in 2023 and the policy was non-renewed by the carrier on July 1, 2024. Under Cal. Ins. Code § 1727, until what date must the broker-agent retain the underwriting and transaction file for that policy?
AUntil July 1, 2025 - one year after non-renewal is sufficient under California law
Until July 1, 2029 - at least five years after the transaction date
CUntil July 1, 2026 - two years tracks the renewal cycle
DIndefinitely - California has no statutory retention period for property-casualty files
Why this is the answer
Cal. Ins. Code § 1727 imposes a five-year retention period on all records of insurance transacted by a licensee, including applications, declarations, correspondence, premium receipts, and binders. The clock generally runs from the date of the transaction or the date the policy expires, whichever is later. The Commissioner's representatives have right of access to those records during business hours; refusal is itself grounds for discipline. Five years also aligns with the typical CDI market-conduct exam look-back.
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