For which type of insurance does controlled business typically apply?

Controlled business typically refers to insurance transactions where the producer has a financial interest or ties to the insured party, which usually manifests in policies covering family members or oneself. This type of situation is often scrutinized because it can lead to conflicts of interest or ethical concerns regarding the producer's motivations for selling insurance policies.

With controlled business, the focus is often on personal relationships rather than on serving the broader market. The insurance industry aims to mitigate the risks associated with controlled business to ensure that agents and brokers are acting in the best interest of their clients, rather than primarily benefiting from the sale of policies to those they are closely associated with.

In contrast, commercial property insurance, pension and retirement plans, and health insurance for clients can extend beyond personal relationships and do not strictly fit the definition of controlled business in a typical context. These types of insurance are more aligned with broader client bases and do not inherently carry the same potential for ethical dilemmas concerning self-dealing or favoritism. Thus, policies that involve covering family members or oneself clearly illustrate the concept of controlled business.