What must a producer do if they are found writing primarily controlled business?

When a producer is found to be primarily writing controlled business, it can raise significant regulatory concerns. Controlled business refers to insurance written on the producer's own financial interests, often involving family members or other entities where they have a personal stake. If a producer is found to be primarily engaged in this type of business, it suggests that they may not be adequately serving the public's interest, which is a core expectation of an insurance producer's role.

As a result, licensing authorities may view this as a violation of ethical standards or regulations governing agents and producers. The consequence of this finding could lead to scrutiny on the producer's license status, potentially resulting in denial of license renewal. This situation underscores the importance of maintaining a balance between controlled business and broader market participation to serve diverse clients effectively. Being prepared for a possible license renewal denial is crucial for producers in order to sustain their ability to operate legally in the industry.

The other options do not directly address the core issue of compliance related to the accountability expected from producers regarding their business practices and the implications of not adhering to those practices.