State RegulationsCO specificDifficulty 1/5
Over what measurement period does Colorado law evaluate whether a producer's controlled-business premiums exceed the premiums on all other business?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
C.R.S. § 10-2-401(4) measures the controlled-business comparison during any 12-month period, so a producer cannot escape review by shifting the mix of business across calendar or license-cycle boundaries. Any rolling 12-month window in which controlled-business premiums dominate triggers the deemed-misuse consequence.
Why the other options are wrong
- B) The statute does not tie the measurement to calendar years.
- C) The two-year license continuation period is irrelevant to the controlled-business comparison.
- D) There is no exemption limited to a producer's first 6 months of licensure.
Memory hook
Any rolling 12 months can expose controlled business.