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INSURANCE CODE
SECTION 10508-10508.8
10508. (a) It is the obligation of every insurer admitted in thisstate to transact life or disability insurance, or both, to maintaincertain records specified in this article pertaining to theactivities of its life, life and disability, and disability agentsand any other agents for the inspection and examination of thecommissioner. (b) The original or certified copies of the records shall bedelivered to the commissioner within a period of 30 days followingreceipt of written demand therefor. (c) The records required to be maintained or made available inthis state may be in the form of originals, carbon, or facsimilecopies, microfilm copies, or electronic data-processing records ifprintouts are available within a reasonable period of time, and shallinclude, to the extent the data are pertinent and available for eachinsurance transaction, the names, dates, amounts and policy numbersinvolved. The records are composed of all of the following: (1) The original application for each insurance policy or contractsold in this state. (2) Records showing, for each insurance policy or contract issued,the premiums received by the insurer. (3) Production records showing all insurance policies or contractssold by each agent or other agent in the expired portion of thecurrent calendar year and the whole of each of the preceding fivecalendar years. (4) Records showing, for each insurance policy or contract issued,the amount of commissions paid and to whom. (5) Records or memoranda identifying any agent other, than theagent whose name appears on the application who, to the actualknowledge of the insurer, handled any part of an insurancetransaction for which the other agent was not compensated. (6) Correspondence, written solicitations or proposals, or otherwritten communications sent by the insurer to a prospect, applicant,or insured, or received from him or her by the insurer, excludingprinted material in general use distributed by the insurer, eitherdirectly or indirectly through its life agents. (7) Correspondence, written proposals, notices, a statement ofreasons, or other written communications, if any, pertaining to therecision, termination, or nonrenewal of a policy or contract, or theelection of nonforfeiture values thereunder, sent by an insurer to apolicyholder or contractholder or received from him or her by aninsurer. (8) A copy of a written comparison of benefits, limitations,exclusions, and costs of existing accident, sickness, or long-termcare coverage and proposed coverage. (9) A copy of the outline of coverage or disclosure statementrequired by law or regulation. (10) Copies of any correspondence between the policyholder orprospective policyholder and the agent or insurer. (11) Copies of correspondence between anyone acting on behalf ofthe policyholder or prospective policyholder and the agent orinsurer. (d) Except as otherwise provided, the records shall be maintainedfor a minimum period of five years following the actual delivery ofthe insurance policy or contract to which each pertains, or, if nopolicy or contract was issued, for a minimum period of five yearsafter the date of the application therefor.10508.5. It shall be the obligation of each life, life anddisability, and disability insurance agent and any other agent andinsurer to preserve and maintain all applicable records defined inSection 10508 in his or her possession, in addition to those recordstransmitted to the insurer, at his or her principal place of businessfor a minimum of five years. The records shall be kept in an orderlymanner so that the information therein is readily available, andshall be open to inspection or examination by the commissioner at alltimes.10508.6. (a) The Legislature finds and declares that there is nostatutory authority for the commissioner to gather information ordata on life insurance, annuity, or disability products for thepurpose of evaluating trends in the marketplace or the uses thesecontracts serve. (b) The commissioner may collect, compile, analyze, and reportdata relating to life and disability insurance, annuity contracts,and related contracts offered, issued, delivered, or renewed in thisstate through any method of marketing. (c) Any officer, manager, agent, or employee of any institutionoffering life and disability insurance, annuity contracts, or relatedcontracts, shall, upon request by the commissioner, exhibit to thecommissioner all books, records, accounts, documents, or agreementsgoverning its method of operation, together with all data,statistics, and information of every kind and character collected orconsidered by the institution in the conduct of its operations. (d) The commissioner may adopt reasonable rules and regulationsrequiring an annual reporting of the data authorized for collectionunder this section. (e) The commissioner may, for the purpose of furthering theuniform administration of regulatory laws, exchange information anddata with law enforcement officials of this and other states relatingto the implementation of the reporting requirements imposed by thissection, and may consult with those officials regarding thatinformation and data.10508.7. A person subject to the requirements of Section 10508.6who submits any false information in connection with a request forinformation or data pursuant to that section shall be liable for acivil penalty not to exceed one hundred thousand dollars ($100,000).A person subject to the requirements of Section 10508.6 who fails tocomply with a request for information or data pursuant to thatsection shall be liable for a civil penalty not to exceed fivethousand dollars ($5,000) for each 30-day period in which the personfails to comply. If the failure to comply is willful, the personshall be liable for a civil penalty not to exceed ten thousanddollars ($10,000) for each 30-day period in which the person fails tocomply, but not to exceed an aggregate amount of one hundredthousand dollars ($100,000). In determining the penalty, thecommissioner shall consider the good faith of the person and anysimilar prior violations by the person under this code.10508.8. The commissioner shall ensure, to the furthest extentpossible, that any data call issued by him or her does not conflictwith any similar data call or data collection request, including, butnot limited to, a request issued by the National Association ofInsurance Commissioners.
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