What action will the Commissioner take if a producer is found to be primarily writing controlled business?

If a producer is found to be primarily writing controlled business, the Commissioner will likely take the action of not renewing the producer's license. This approach is grounded in regulatory practices meant to prevent the misuse of licenses for personal gain rather than serving the public interest. Controlled business refers to insurance written on one's own life, property, or the life and property of close relatives or business associates. Regulation often restricts the amount of controlled business a producer can write to ensure that their primary activities align with the ethical standards expected in the insurance industry.

By not renewing the license, the Commissioner is enforcing compliance with established laws designed to maintain fair and equitable practices within the insurance field. This action upholds the integrity of the insurance system and ensures that producers are serving a diverse clientele rather than predominantly deriving income from their own or closely related interests.

The other options do not accurately reflect the typical disciplinary actions associated with this scenario. For instance, imprisonment and the requirement to return commissions are not standard outcomes for this type of violation, and assigning a portion of the business to another producer does not directly address the issue of controlled business practices. Therefore, the decision not to renew the license aligns with regulatory objectives to maintain ethical conduct and protect the interests of consumers.