Mississippi Property & Casualty Practice Exam 2026 – Comprehensive Prep Guide

Question: 1 / 400

What is the maximum percentage of aggregate commissions an agent can exceed before they lose their commission on control business?

25%

35%

The maximum percentage of aggregate commissions that an agent can exceed before losing their commission on controlled business is set at 35%. This regulation is important as it helps to maintain ethical standards in the insurance industry by discouraging agents from prioritizing their financial gains over the best interests of their clients. Controlled business refers to insurance policies written by agents that primarily benefit their own financial interests, which can lead to conflicts of interest. The 35% threshold serves as a safeguard to ensure that agents do not disproportionately benefit from policies where they have significant control. If an agent exceeds this threshold, it can indicate potential unethical behavior, prompting regulatory bodies to limit or revoke commission payments. This regulation ultimately aims to create a fair and trustworthy insurance market for consumers.

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