A license is deemed to be used for controlled business if during any 12-month period:

A license is deemed to be used for controlled business when the licensee's total premium on controlled business exceeds the total premiums on all other business. This definition is crucial because controlled business refers to the insurance sold to the licensee's own interests, such as family members, employees, or closely affiliated individuals or entities. Colorado regulations are designed to prevent abuse where agents might primarily serve their financial interests rather than those of the broader public.

By determining that controlled business exists when such premiums exceed total premiums from other sources, the regulation ensures that agents maintain a balanced and ethical practice, serving a wider range of clients rather than focusing predominantly on personal or closely related financial interests. This helps promote fairness and trust in the insurance system, which ultimately benefits consumers.