What is the definition of "controlled business" in insurance?

The term "controlled business" in insurance specifically refers to the insurance policies that an agent writes for their own life, property, or interests. This definition reflects a situation where the insurance producer has a significant personal financial interest in the policies they are securing. The reason this definition is important is that it helps to identify potential conflicts of interest; agents could prioritize their own needs over their clients' best interests.

Controlled business is regulated in many jurisdictions, including Florida, to ensure that agents do not exploit their position for personal gain, which could be detrimental to customer service and ethical considerations in insurance practice. This regulatory framework aims to maintain fairness and professionalism within the industry, ensuring that agents are primarily serving the needs of their clients rather than solely focusing on their own interests.

The other choices do not accurately capture the essence of what constitutes controlled business. For instance, insurance written for a company's employees pertains to group policies rather than the personal interests of the agent. Similarly, limited market and foreign market situations refer to the geographical or market scope rather than to the agent's personal interests in their policies.