In Wisconsin, intermediaries must retain policyholder records for at least how long after lapse?

• A. three years
• B. one year
• C. ten years
• D. five years

Answer: (A)

In Wisconsin, intermediaries are required to keep policyholder records for a minimum of three years after a lapse. This retention window ensures you have a complete paper trail for regulatory audits, reinstatement discussions, and any claims or inquiries that may arise later. Keeping these records for three years helps both the policyholder and the intermediary because it provides documentation of how the lapse occurred, what communications occurred, and any actions taken to address the lapse, such as reinstatement or updated premiums.

Why this duration fits best: a shorter period, like one year, may not cover all potential regulatory reviews or customer questions that come up after a lapse. Longer periods, such as five or ten years, aren’t required by Wisconsin for this specific obligation, though some organizations may choose longer retention for internal reasons. The three-year minimum is the standard that aligns with regulatory expectations for post-lapse recordkeeping.

Typical records to retain include application forms, policy documents and endorsements, lapse notices, correspondence with the policyholder, premium payment histories, reinstatement requests, and any beneficiary or ownership changes. Keeping these on file for three years after lapse provides a reliable, compliant trail for audits, disputes, or claims.