Controlled business in insurance refers to policies written on whose interests?

Controlled business in insurance refers to policies written on the interests of individuals or entities that have a close relationship with the licensee, specifically including the licensee's family and their employer. This practice is closely monitored due to the potential for abuse where agents might write business primarily for their financial benefit rather than serving the needs of the general public.

When looking at the interests of the licensee's family, it is clear that any insurance policy issued for family members falls within this definition. Similarly, when policies are issued for the employer of the licensee, that relationship also qualifies as controlled business. Both of these scenarios highlight the personal and professional connections that can influence the insurance business practices of the licensee.

Monitoring controlled business is crucial as it helps ensure that insurance representatives are acting ethically and not prioritizing personal gains over broader market needs. Thus, recognizing that controlled business encompasses policies written for both family and employer provides a comprehensive understanding of this term within insurance regulations.