What does controlled business refer to in the context of Indiana's insurance regulations?

In the context of Indiana's insurance regulations, controlled business refers to insurance transactions that primarily involve individuals or entities with which the producer has a personal or close relationship. This includes relationships such as family members, where there may be potential conflicts of interest due to the personal ties.

While options involving sales to employees and friends also highlight relationships that a producer may have, the core definition of controlled business focuses on the direct, often familial, connection. The intent behind regulating controlled business is to prevent potential abuses and ensure that insurance transactions are conducted fairly and ethically, promoting the best interests of the insured.

Therefore, understanding that controlled business is specifically about relationships that lead to concentrated business efforts in a personal context is crucial in grasping the broader regulatory framework intended to ensure ethical practices in the insurance industry.