Is an insurance company allowed to keep claim files out of state? If so, when is it okay?

• A. No
• B. Always allowed
• C. Yes, in all cases
• D. Terminal illness, can't get better in 90 days, 3 doctors in 15 miles, 5 doctors in 25 miles

Answer: (D)

Records handling for claims under California self‑insurance rules allows an exception to keeping claim files in state only when there are genuine medical necessity reasons and limited local access to care. The scenario described matches that exception: if a claimant is terminally ill and unlikely to improve within 90 days, and there is an established local provider network with enough doctors within reasonable distances (three doctors within 15 miles or five doctors within 25 miles), then it may be permissible to maintain the claim files out of state. This reflects balancing the need for timely medical review and documentation with practical access to care. Outside these conditions, storing files out of state is not generally allowed.