What does the term 'controlled business' refer to in insurance practice?

The term 'controlled business' in the context of insurance practice refers specifically to insurance sold primarily to family members or close relatives of the insurance agent. This concept is significant because it implicates ethical considerations and regulatory scrutiny; insurance regulators often require agents to limit the amount of controlled business they write to prevent conflicts of interest and ensure that agents are serving a broader customer base rather than primarily benefiting from family connections.

Controlled business is often subject to specific regulations to maintain transparency and fairness in the market. The intent is to protect consumers by ensuring that insurance agents do not exploit personal relationships for financial gain at the expense of providing appropriate services to a wider community.

The other options do not accurately reflect the definition of controlled business. Insurance sold to corporations, group insurance plans, and discounted rates may involve legitimate business practices but do not capture the essence of 'controlled business' as it pertains to personal relationships with family members or how business is generated through those connections.