Insurance on a producer's own life or their immediate family is known as?

The term for insurance on a producer's own life or that of their immediate family is known as controlled business. This concept specifically refers to insurance policies that producers, or agents, take out on themselves and their close relatives. The underlying reason for calling it controlled business is that the producer has significant influence and authority over these policies, as they are directly involved in the procurement and management of the insurance.

Controlled business is a crucial term in the insurance industry, as regulators often monitor the amount of controlled business that an agent or producer writes to ensure that the market remains fair and competitive. This is to prevent situations where producers might exploit their position to benefit personally at the expense of broader market dynamics.

In this context, the other answer choices do not hold the same relevance. Personal business could imply insurance purchased for one’s own use, but it does not specifically address the aspect of having influence over the policy as the term controlled business does. Family risk generally refers to the financial risk faced by a family unit, rather than the specific insurance policies held by industry professionals. Related business could imply connections to professional activities but does not pinpoint the personal aspect of family insurance as accurately as controlled business does.