Policy and Transaction Recordkeeping
What must be kept
Keep the entire surplus lines file: diligent search evidence, declinations, insurer eligibility information, the policy and endorsements, the signed disclosure, premium and tax calculations, OSLA filings, and correspondence. Records must be retrievable and available to the Director on examination.
Retention and access
Oregon requires surplus lines records to be retained for at least five years after the policy expires or the transaction is completed. Electronic storage is acceptable if it is legible and can be produced promptly. Do not rely on the insurer’s file alone; the producer must be able to prove compliance.
Worked example
A market conduct examiner requests the file for a 2021 policy. The producer has the policy and tax receipt but no declinations. Reasoning: the missing search record is a substantive violation, not a clerical gap, because Oregon requires proof that the risk was not procurable from admitted insurers.
Traps that cost marks
Do not discard declinations after binding. Do not keep only the policy number. Do not assume a stamp on the policy replaces the underlying file. Do not store records in a form that cannot be produced during an examination.