A license for writing insurance only on family members or business relationships is referred to as?

The term that refers to a license for writing insurance only on family members or business relationships is known as "Controlled Business." This concept is crucial in the insurance industry as it specifies the nature of the relationships that an agent can maintain with their clients for their insurance practice.

Controlled Business generally indicates that the agent or broker is allowed to write policies primarily for individuals with whom they have a close personal or business relationship, essentially limiting their customer base to these specific groups. The rationale behind this regulation is to prevent potential conflicts of interest and ensure that agents do not exploit their professional positions for personal gain.

This practice maintains a level of ethical standards within the industry and ensures that insurance is provided on a fair basis to the broader public, rather than just to those within the agent's personal circle. Understanding the concept of Controlled Business helps clarify why agents are often regulated to limit their business interactions to family or established business relationships only.