What term describes writing insurance on oneself, one's family, or employer?

The term "controlled business" refers to the practice of an insurance agent or producer writing policies on themselves, their family members, or their employer's interests. This concept arises from the provision that agents may have a closer affinity or advantage in selling insurance to those within their personal or professional circles, leading to potential ethical concerns regarding the motivations behind such sales.

In many states, including Tennessee, regulators monitor controlled business to avoid the risk of agents prioritizing their own financial interests over the best interests of the public. This practice ensures that insurance agents remain responsible and ethical in their practices, balancing personal and professional gains. It serves to uphold the integrity of the insurance marketplace by ensuring that premiums collected contribute to broader risk pools, rather than being concentrated among a single agent's immediate connections.

The other terms have distinct meanings: "direct business" pertains to insurance sold directly to consumers without intermediaries, "personal insurance" usually describes policies that provide coverage for individual needs, and "group insurance" refers to plans that collectively cover groups of individuals, often through employers. Understanding these definitions helps clarify why "controlled business" is the most accurate term in this context.