The Commissioner may revoke a producer's license if commissions on "controlled business" exceed what percentage of total commissions within a 12-month period?

The correct percentage for commissions on "controlled business" that can be received by a producer without triggering revocation of the license is 50%. In New Jersey, controlled business generally refers to business written on behalf of an individual or entity that has a certain level of ownership or control over the producer. To prevent conflicts of interest and ensure that producers do not exclusively rely on their own businesses for commissions, the New Jersey statute stipulates that commissions from controlled business must not exceed 50% of the total commissions earned over a 12-month period. This regulation aims to encourage producers to seek a diverse client base and promote fair competition within the insurance market.

Understanding this statutory limit is crucial for producers to maintain their licensing status and to ensure compliance with state laws.