An Illinois license applicant expects that premiums on coverage for the applicant's employer's business will exceed the premiums on all other business the applicant would write. Under 215 ILCS 5/500-125, what is the consequence?

Why C is correct

215 ILCS 5/500-125 provides that a license may not be granted or extended where the premiums on controlled business — the producer's own, a spouse's, or an employer's coverage — exceed the premiums on all other business written by the licensee. Illinois refuses to license producers whose book consists mainly of their own affiliated risks, protecting the general insuring public.

Why the other options are wrong

• A) The statute withholds the license itself; it does not merely strip commissions from the controlled business.
• B) A $2,500 bond under 215 ILCS 5/500-130 addresses placements made without an agency contract; it cannot cure a controlled-business violation.
• D) Extra ethics hours are not the remedy; the controlled-business test under 215 ILCS 5/500-125 controls whether the license may be granted or extended.

Memory hook

Controlled business can't outweigh everyone else.