Over a 12-month period, the premiums a Colorado life producer writes on his own life, his family members, and his business employees exceed the premiums on all of his other business combined. Under C.R.S. § 10-2-401, what is the consequence?

Why D is correct

C.R.S. § 10-2-401(4) and (5) treat a license as misused when, during any 12-month period, the aggregate premiums on controlled business exceed the aggregate premiums on all other business of the licensee. Writing predominantly for oneself, family members, and employees signals that the license is being used for the licensee's own benefit rather than for the insuring public.

Why the other options are wrong

• A) The consequence under C.R.S. § 10-2-401 is that the license is deemed misused, not a required refund of commissions.
• B) C.R.S. § 10-2-401 does not convert the license into a limited license; the license is deemed misused.
• C) Even legitimate policies create a misuse problem when controlled-business premiums exceed all other premiums over a 12-month period.

Memory hook

More business for yourself than for others? License misuse.