State RegulationsIL specificDifficulty 1/5
Under 215 ILCS 5/500-125, which of the following is controlled business?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under 215 ILCS 5/500-125, controlled business is insurance written on the producer's own life or property, that of the producer's spouse, or the business of the producer's employer or a business the producer controls. Insurance sold to unrelated clients — even referred ones — is not controlled business. The classification matters because of the statutory cap on how much controlled business a licensee may write.
Why the other options are wrong
- B) A referred client is an unrelated customer; the business is not controlled under 215 ILCS 5/500-125.
- C) An unrelated employer obtained through competitive bidding is ordinary business, not controlled business.
- D) A former client outside the producer's family or employer is not controlled business, regardless of the client's location.
Memory hook
Controlled = me, my spouse, my employer.