Which statement best describes a controlled business in Arkansas?

The statement that best describes a controlled business in Arkansas is that it involves policies written on individuals that a producer influences. In the context of Arkansas insurance regulations, a controlled business refers to insurance transactions where a producer has a significant impact on the placement of insurance for individuals they have a personal or professional relationship with. This can include policies sold to friends, associates, or other close contacts who are influenced by the producer's advice or actions.

This definition aligns with the intent of regulation, which seeks to prevent conflicts of interest and ensure that producers are acting in the best interest of their clients. The other options do not accurately reflect the nature of controlled business as defined within Arkansas law. For instance, selling insurance only to family members or avoiding regulation entirely does not encompass the broader scope of influence that a producer has in controlled business transactions, nor does it represent the typical relationship that exists between a producer and their clients.