State RegulationsNY specificDifficulty 3/5
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?
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Answer & full 3-part explanation (select an option above, or peek)
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.