Controlled business: what minimum percentage of the agent's total premium volume must come from persons other than the agent or their family to be considered non-controlling?

• A. 10%
• B. 25%
• C. 50%
• D. 75%

Answer: (B)

Controlled business means the agent’s own clients (especially the agent or their family) account for most of the premiums the agent writes. To be considered non-controlling, at least a quarter of the agent’s total premium volume must come from people other than the agent or their family. So, if the agent writes $100,000 in premium and at least $25,000 comes from outside the agent and family, that meets the non-controlling threshold. This threshold helps ensure the agent isn’t primarily directing business to themselves or relatives, reducing potential conflicts of interest.