Which statement describes keeping claim files out of state?

• A. Yes, if stored offsite
• B. Yes, if manager has granted written approval
• C. No, never allowed
• D. Yes, if the out-of-state storage is for audits

Answer: (B)

Storing claim files out of state is allowed only with formal authorization, because records must be kept under controlled conditions and remain accessible for audits and regulatory reviews. A plan must have written approval from the plan manager before moving or storing files outside California. This creates an auditable trail, ensures data security and privacy, and prevents informal off-site storage from bypassing governance. Without that written approval, moving files out of state would violate policy and could trigger compliance issues. Simply storing offsite isn’t enough by itself, and storage for audits doesn’t automatically grant authorization. So out-of-state storage is permitted only when the manager has granted written approval.