Under N.Y. Ins. Law §2103(i), a producer's license may be revoked if net commissions from controlled business - insurance written on the licensee's own affairs - exceed which share in any 12-month period?

Why B is correct

Under N.Y. Ins. Law §2103(i), controlled business - insurance covering the licensee's own affairs - may not produce net commissions exceeding 10 percent in any 12-month period, measured in the 12 months before or after licensing. Exceeding the controlled-business limit is grounds for revocation of the license.

Why the other options are wrong

• A) 5 percent is the rebate-law allowance for commission an agent may retain on the agent's own policies under N.Y. Ins. Law §2324; it is not the controlled-business test.
• C) 25 percent is a figure from the minor life-insurance limits of §3207(b), not the controlled-business threshold.
• D) No 50 percent controlled-business threshold exists; 50 belongs to the small-group employer-size ceiling under Reg 145.

Memory hook

Controlled business caps at 10 percent; the 5 percent figure belongs to rebating on your own policies.

Why B is correct

Under N.Y. Ins. Law §2103(i), if a licensee's net commissions on controlled business — insurance on the licensee's own interests — exceed 10% of total net commissions in any 12-month period (measured in the 12 months before or after licensing), the license may be revoked. The licensing system exists to serve the insuring public, not to insure one's own household.

Why the other options are wrong

• A) 5% is the commission-retention allowance on an agent's own policies under §2324(f), not the controlled-business ceiling.
• C) 25% far exceeds the statutory tolerance for commissions from the licensee's own affairs.
• D) Half of a licensee's commissions coming from the licensee's own affairs would be a textbook violation, not an allowed share.

Memory hook

Controlled business: keep it under 10% in any 12-month stretch.