A producer plans to concentrate sales on policies covering the producer's own family members and closely held business. What limit does North Carolina place on this 'controlled business' as a share of the producer's sales?

Why D is correct

North Carolina has no controlled-business percentage restriction: the former limiting provision was repealed, and current Article 33 of Chapter 58 contains no cap on the share of business a producer may write for family or affiliated interests. A producer who lawfully holds an insurable interest in such risks may write them without a statutory ceiling, though insurer underwriting and the producer ethical standards in 11 NCAC 4 .0423 still apply.

Why the other options are wrong

• A) No 25% cap exists in North Carolina law; Article 33 of Chapter 58 contains no controlled-business percentage limit.
• B) A 50% ceiling is a feature of other states' statutes, not of North Carolina's; NC imposes no percentage limit.
• C) Ten percent has no basis in Chapter 58; the correct concept answer is that no controlled-business percentage limit exists in North Carolina.

Memory hook

NC trusts its producers: no controlled-business cap.

Why B is correct

Under North Carolina insurance law (Article 33 of Chapter 58), there is no controlled-business percentage limit; the former provision was repealed, and no statute caps the share of a producer's business written on his own risks or those of close associates. A producer who asks this question should understand that licensing compliance instead runs through continuing education and insurer appointments.

Why the other options are wrong

• A) A fixed percentage cap is the approach of some other jurisdictions but has no counterpart in North Carolina law.
• C) Controlled business is not prohibited; North Carolina simply imposes no ratio at all.
• D) The Commissioner has no authority to set an individualized cap, and no such rule exists.

Memory hook

North Carolina has no controlled-business ratio - do not import one from elsewhere.