Controlled business: what minimum percentage of the agent's total premium volume must come from persons other than the agent or their family to be considered non-controlling?

Controlled business: what minimum percentage of the agent's total premium volume must come from persons other than the agent or their family to be considered non-controlling?

• A. 10%
• B. 25%
• C. 50%
• D. 75%

Answer: (B)

Controlled business means the agent’s own clients (especially the agent or their family) account for most of the premiums the agent writes. To be considered non-controlling, at least a quarter of the agent’s total premium volume must come from people other than the agent or their family. So, if the agent writes $100,000 in premium and at least $25,000 comes from outside the agent and family, that meets the non-controlling threshold. This threshold helps ensure the agent isn’t primarily directing business to themselves or relatives, reducing potential conflicts of interest.

Controlled business means the agent’s own clients (especially the agent or their family) account for most of the premiums the agent writes. To be considered non-controlling, at least a quarter of the agent’s total premium volume must come from people other than the agent or their family. So, if the agent writes $100,000 in premium and at least $25,000 comes from outside the agent and family, that meets the non-controlling threshold. This threshold helps ensure the agent isn’t primarily directing business to themselves or relatives, reducing potential conflicts of interest.