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A North Carolina licensee keeps its 2026 records only in a proprietary database. Under what condition does that format satisfy the record-format rule?

Correct Answer

C) Acceptable if convertible into legible, tangible documents by the licensee

The records may be maintained in any form that is convertible into legible, tangible documents by the licensee. Other choices: the rule permits any convertible form; paper originals are not required by this rule; and hosting is governed by the separate location rule. Source: 04 NCAC 03M .0502(a)

Answer Options
A
Acceptable only where the database is hosted within the State
B
Acceptable only where the licensee also keeps paper originals
C
Acceptable if convertible into legible, tangible documents by the licensee
D
Not acceptable, because the Commissioner must be able to inspect the records and a format that only the licensee software can open frustrates that inspection

Why This Is the Correct Answer

The records may be maintained in any form that is convertible into legible, tangible documents by the licensee. Other choices: the rule permits any convertible form; paper originals are not required by this rule; and hosting is governed by the separate location rule. Source: 04 NCAC 03M .0502(a)

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