What is the maximum percentage of controlled business a producer may write based on the aggregate commission earned?

The maximum percentage of controlled business that a producer can write, based on the aggregate commission earned, is 25%. This regulation exists to ensure that producers do not primarily profit from writing policies for themselves, their family members, or their business entities, thereby maintaining ethical standards in the insurance industry.

Controlled business is typically defined as insurance written on the life or property of the producer, their relatives, or their business associates. By limiting controlled business to 25% of the total commissions, the regulatory framework encourages a balance in the producer's business, helping to ensure that they are also focusing on serving a wider client base rather than predominantly selling to themselves or their close connections. This helps to protect the interests of consumers and foster fair competition within the insurance marketplace.