In an independent agency system, who retains ownership, use, and control of policy records?

In an independent agency system, who retains ownership, use, and control of policy records?

• A. The insurer
• B. The independent agent
• C. The insured
• D. The regulators

Answer: (B)

In an independent agency system, the independent agent owns and controls the policy records. The agency creates, stores, and uses the client files to service policies across multiple insurers, handle renewals and endorsements, and maintain client communications. Insurers may receive copies or access the records as needed for underwriting and claims, but they do not own the files. This arrangement reflects the agency’s ongoing relationship with the client and its responsibility for policy servicing, regardless of which insurer issued the policy.

In an independent agency system, the independent agent owns and controls the policy records. The agency creates, stores, and uses the client files to service policies across multiple insurers, handle renewals and endorsements, and maintain client communications. Insurers may receive copies or access the records as needed for underwriting and claims, but they do not own the files. This arrangement reflects the agency’s ongoing relationship with the client and its responsibility for policy servicing, regardless of which insurer issued the policy.