When might the Director refuse to issue a license based on the amount of controlled business premiums?

The director might refuse to issue a license based on the amount of controlled business premiums during the two calendar years immediately preceding the extension date of the license. This rule is in place to ensure that insurance practices maintain a balanced approach to underwriting and distribution, preventing any potential conflicts of interest or abuse that could arise from an over-reliance on controlled business.

Controlled business refers to insurance sold primarily to the licensee's own business interests or employees. By examining a two-year period leading up to the license extension, the director can effectively assess patterns and practices in the applicant's business that may indicate excessive controlled premium income. This measure helps protect the integrity of the insurance market and ensures that licenses are issued to candidates demonstrating a healthy distribution of business practices rather than excessive self-serving activities.

The period options provided directly compare to the two-year assessment period, which is specifically designed to evaluate the applicant's recent business activities and ensure compliance with regulatory standards aimed at maintaining fair competition and ethical insurance practices. The other options do not align with this rationale, as they either focus on shorter or different timeframes which do not adequately capture the necessary historical context of an applicant's business operations.