If a producer writes an excessive amount of controlled business, what responsibility may they have?

When a producer writes an excessive amount of controlled business, they have a responsibility to ensure that they're not violating regulations designed to protect consumers and maintain a fair insurance marketplace. Controlled business refers to insurance that the producer sells primarily to themselves, their family, or their business interests. Writing excessive amounts can lead to potential conflicts of interest and may invite scrutiny from regulatory bodies.

By reassigning some business to another producer, the original producer can help distribute the risk and ensure compliance with legal standards. This practice aligns with the principle of fair market competition and helps promote a healthier insurance environment.

The other options do not directly address the accountability and ethical obligations that arise from the excessive writing of controlled business. Responsibilities like reporting transactions to the IRS, increasing premiums, or changing the type of insurance sold do not inherently resolve the issue of excessive controlled business and do not mitigate the associated regulatory concerns. Thus, reassigning some business to another producer stands out as the most appropriate and responsible action in such a scenario.