What constitutes control in an insurance entity?

Control in an insurance entity is defined by the ownership, control, or power to vote a significant portion of the entity's voting securities. Specifically, owning 25% or more of the voting securities indicates a substantial influence over the company's decisions, direction, and management. This level of ownership allows an individual or entity to have a considerable say in the operations and policies of the insurance organization, which is why it is recognized as a key metric for determining control.

Entities and regulators often look at this threshold to assess who can impact significant corporate actions, such as mergers, acquisitions, and governance decisions. A stake of 25% aligns with common corporate governance standards that define a controlling interest, thus justifying it as the correct answer regarding what constitutes control in an insurance entity.