Under C.R.S. § 10-2-401(4), controlled business includes insurance written on:

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.

Why A is correct

Under C.R.S. § 10-2-401(4), controlled business is insurance written on risks the producer effectively controls: the producer's own life or property and the lives or property of close associates such as family or employees. The concern is that the producer controls the purchase decision rather than serving an arm's-length client, which is why the statute watches its share of the producer's book.

Why the other options are wrong

• B) Representing multiple insurers is ordinary independent production, not controlled business.
• C) A client's shopping history has no bearing on the definition; control by the producer is the trigger.
• D) A large commercial account is an arm's-length client relationship, not the producer's own controlled risk.

Memory hook

Controlled business = you, yours, and the people who take your word at the dinner table.