Controlled business refers to which of the following?

Controlled business in the context of insurance refers to the securing of an insurance license for personal benefits. This concept is important as it highlights the ethical and regulatory considerations in the insurance industry. Controlled business occurs when an insurance agent primarily sells insurance to themselves or to individuals or businesses in which they have a personal interest. This could lead to a conflict of interest, as the agent may prioritize their personal profit over the best interests of clients.

Understanding controlled business is crucial for maintaining professionalism and integrity within the insurance market. Many states, including Wisconsin, have regulations to limit the amount of controlled business an agent can write to prevent potential abuse and ensure that the agent is also focusing on serving the overall community and clients rather than just themselves.