What is meant by controlled business in the insurance industry?

Controlled business in the insurance industry refers specifically to insurance that an agent or broker procures for their own life or property. This concept arises from regulations aimed at preventing conflicts of interest, ensuring that agents do not prioritize their financial gain over that of their clients.

In this context, the focus is on agents securing policies for themselves rather than for a broad range of clients. This can include policies for their homes, automobiles, or life insurance coverage. The rationale behind regulating controlled business is to safeguard the integrity of the insurance market and protect consumer interests.

Other options, such as insurance for any business entity, insurance sold exclusively to large corporations, or insurance bought by individual consumers, do not accurately represent the concept of controlled business. These alternatives lack the specific context of agents procuring insurance for their own interests, which is the defining characteristic of controlled business.