State RegulationsNY specificDifficulty 1/5
Under N.Y. Ins. Law §2103(i), net commissions earned on a licensee's controlled business must not exceed what percentage of total commissions 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), 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.