State RegulationsCO specificDifficulty 1/5
Under C.R.S. 10-2-401(4), when is a producer's license deemed misused because of controlled business?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
C.R.S. 10-2-401(4) provides that a license is deemed misused if, during any 12-month period, aggregate controlled-business premiums exceed the aggregate premiums on all other business of the licensee. The test is comparative and measured over 12 months, not on any single sale or single month.
Why the other options are wrong
- A) A sale to a relative is not automatically a violation; the premium-volume test over 12 months controls.
- B) The measurement period is any 12-month period, not a single calendar month.
- C) Holding multiple licenses is unrelated to the controlled-business test.
Memory hook
12 months, more own than others - license misused.