Illinois Life Producer State-designated Practice Exam

For how many years must producers keep records of service fees charged or received?

1. 5 years

2. 10 years

3. 7 years

4. 3 years

The correct answer is: 7 years

Producers are required to maintain records of service fees charged or received for a duration of 7 years. This requirement is in place to ensure proper documentation and accountability in financial transactions and to allow for audits or reviews by regulatory authorities if necessary. Keeping records for this length of time provides adequate coverage for potential inquiries concerning transactions, including those that may occur during or after this period. It also aligns with typical statute limitations and ensures compliance with regulatory standards placed on insurance producers. Such provisions help maintain transparency and trust within the insurance industry, both for the producers and their clients.