What percentage of premium from controlled business is allowed in a 12-month period?

• A. 10%
• B. 15%
• C. 20%
• D. 25%

Answer: (B)

This question tests how much of an agent’s business can come from controlled business in a year. Controlled business is insurance written by an agent on risks in which the agent or their close relatives have an ownership interest or some other direct connection. Regulators cap this share to prevent self-serving behavior and keep the agent focused on serving unrelated clients as well.

In Michigan’s Property & Casualty Limited Lines, the limit is 15% of gross premiums in any 12-month period. So the best answer is 15% because the rule sets a fixed upper bound for controlled business within a year. The cap is measured over a rolling 12-month window, and going above it can trigger regulatory action.