State RegulationsCO specificDifficulty 1/5
Under C.R.S. § 10-2-401(4), controlled business includes insurance written on:
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
C.R.S. § 10-2-401(4) defines controlled business as insurance on the producer's own life or property, on the lives or property of the producer's family or employees, or on interests in which the producer holds a stake. The definition targets self-dealing by Colorado licensees, not ordinary agency production.
Why the other options are wrong
- A) Business flowing through a general agency is ordinary production, not controlled business, unless the producer holds the enumerated interests.
- B) Assignment to a third-party administrator does not make coverage controlled business under the statute.
- D) Employer group coverage is controlled business only where the producer's own interests are covered, not merely because an employer controls the plan.
Memory hook
Controlled business: your life, your family, your employees, your property.