What is the maximum percentage of controlled business an agent can have?

In the context of insurance regulations, controlled business refers to policies that an agent sells to individuals or entities with whom they have a personal or business relationship. The maximum percentage of controlled business that an agent can have is a regulatory safeguard aimed at preventing agents from prioritizing their own interests over those of the general public.

In Tennessee, the maximum percentage of controlled business an agent is allowed to write is indeed 25%. This threshold is in place to ensure that licensed agents maintain ethical standards and do not become overly reliant on personal connections when generating income through commissions. It encourages agents to diversify their clientele and promote fair access to insurance products.

This regulatory measure helps maintain the integrity of the insurance market by minimizing conflicts of interest and promoting accountability among agents. When agents write controlled business exceeding the allowable percentage, they may face penalties, including potential fines or loss of their license. Thus, understanding the maximum limit is crucial for agents operating in compliance with state regulations.