In the state of Florida, there are specific regulations governing the amount of business that can originate from controlled sources. Controlled business typically refers to insurance or real estate transactions where the licensee has a financial interest, such as sales to family members or employees of their own company.
To stay compliant with Florida state law, a licensee must ensure that their commissions from controlled business do not exceed a certain percentage of their total commissions within a given year. This regulation is in place to prevent conflicts of interest and ensure that professionals are serving a broad client base.
Among the given options:
A. 60%
B. 20%
C. 50%
D. 35%
The correct percentage that a licensee's commissions from controlled business must not exceed is:
B. 20%
This means that no more than 20% of the licensee's total commissions can come from controlled business in any given year. Exceeding this limit could result in penalties or loss of the license.
