Controlled business is defined as insurance a producer writes on which of the following individuals?

Controlled business refers to insurance that a producer writes on individuals or entities with whom they have a close personal or professional relationship. This includes individuals like family members, business partners, personal friends, and neighbors, depending on the context.

The correct response pertains to neighbors, as this term encompasses individuals living nearby, with whom the producer may have an established personal relationship, making it easier for the producer to sell insurance policies. This definition allows regulators to monitor and manage the potential for misuse or unethical practices that could arise from financial ties between the producer and the insured.

In most contexts, other terms such as family members, business partners, and personal friends can also be classified as controlled business relationships, but the primary focus in regulation is often on maintaining integrity in the insurance industry regardless of the type of relationship involved. Thus, while neighbors can indeed fall under the broader definition, the emphasis on the local community aspect in this instance points to the nature of controlled business in a way that signifies both personal interaction and potential ethical considerations in the selling process.