State RegulationsNY specificDifficulty 1/5
Which of the following best describes 'controlled business' under the New York Insurance Law?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under N.Y. Ins. Law §2103(i), controlled business is insurance written on the interests of the licensee or the licensee's own circle — family members, employers, and fellow employees. Because a license is granted to serve the insuring public, the law caps how much of an agent's production can come from the licensee's own affairs.
Why the other options are wrong
- B) Premium financing describes how a customer pays, not whose interests are insured — it has nothing to do with controlled business.
- C) Placement with a non-represented insurer would raise appointment issues, not the controlled-business concern.
- D) The marketing channel that produces the sale is irrelevant; controlled business turns on whose interests are being insured.
Memory hook
Controlled business = insuring your own world: self, family, employer, co-workers.