Under what condition is receiving commission for controlled business legal?

Receiving commissions for controlled business is legal when the premiums collected from non-controlled business in the past 12 months exceed those collected from controlled business. This regulation helps ensure that insurance producers are not solely dependent on commissions from business they have a vested interest in, thereby promoting a more ethical and fair insurance marketplace.

The idea is to minimize conflicts of interest where a producer might prioritize the sales of insurance products to relatives or business associates solely for the sake of earning commissions. By requiring that non-controlled business premiums exceed those from controlled business, the regulation supports fair competition and protects consumers from potential exploitation in situations where the producer might be overly influenced by personal relationships.

This framework balances the legitimate business interests of producers with the necessity of maintaining integrity in the insurance industry, which is essential for fostering trust and accountability in insurance practices.