A producer in Colorado Springs writes primarily his own personal policies and those of his close family members. Under C.R.S. § 10-2-401(4),(5), the producer's license is deemed misused if, during any 12-month period, the aggregate premiums on this controlled business:

Why D is correct

Under C.R.S. § 10-2-401(4),(5), a license is deemed misused if, during any 12-month period, the aggregate premiums on controlled business — policies written on the licensee's own life or property or that of close associates — exceed the aggregate premiums on all other business of the licensee. The test is a comparative premium ratio measured over a rolling 12-month period, and exceeding it exposes the license to suspension or revocation.

Why the other options are wrong

• A) This inverts the statutory test of C.R.S. § 10-2-401(4),(5); misuse occurs when controlled business dominates, not when it shrinks.
• B) Writing controlled business without commission does not cure the imbalance; the statute compares premium volumes, not commissions paid.
• C) The comparator under C.R.S. § 10-2-401(4),(5) is the aggregate of all other business, not any single unrelated policy.

Memory hook

Keep controlled business under half, or the license is on the line.