Life & Health · Chapter 20 · Marketing Practices
Controlled Business (50% Rule)
Definition
Coverage written by an agent on their own life, health, or property, their immediate family, or business associates (i.e., insurance written in the interests of the licensee, their employer, or their family). Most states will not issue a license to a person whose primary purpose is writing controlled business; generally no more than 50% of an agent's insurance sales may come from controlled business.
In plain English
You can insure yourself and your family — you just can't get licensed mainly to do that. Keep it under half your book.
Exam tip
Obtaining a license for the purpose of writing controlled business is itself a CFO ground for refusal or revocation.
Easy to confuse with
These are what this term gets tested against — if you can't tell them apart cold, drill the contrast.
Related terms