State RegulationsCO specificDifficulty 2/5
During the current 12-month period, a Colorado producer's premiums from policies on the producer's own life and business have exceeded the premiums on all of the producer's other business combined. Under C.R.S. § 10-2-401(4),(5), what is the consequence?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
C.R.S. § 10-2-401(4),(5) deems a producer's license misused if, during any 12-month period, aggregate controlled-business premiums exceed the aggregate premiums on all of the licensee's other business. The measure is a premium comparison over a rolling 12-month window; the consequence is that the license is deemed misused, subjecting the producer to action by the Colorado Division of Insurance.
Why the other options are wrong
- A) Some controlled business is lawful, but exceeding the premium comparison in a 12-month period is the statutory tipping point.
- C) The statute deems the license misused; it does not order forfeiture of all commissions as the remedy.
- D) The policies remain in force; the consequence falls on the license, not on the controlled policies themselves.
Memory hook
When your own business outsells everyone else's in 12 months, your license is on trial.