Current through Register 2024 Notice Reg. No. 52, December 27, 2024
No name proposed by an applicant or licensed producer
(other than the bona fide natural name of an individual) shall be approved if
it appears that use of the proposed name may mislead the public in any respect.
When the true name of an organization is disapproved under these regulations,
said organization may operate under an approved fictitious name provided that a
commitment to use said approved fictitious name exclusively in the
solicitations of insurance is made by the applicant or licensee to the
Commissioner. A disapproval under this section may be based on one or more of
the following criteria:
(a) The name
is the same as, closely resembles, borrows on the name of, or implies
affiliation with or sponsorship by, a federal, state, or local governmental
authority or program.
(b) The name
is the same as the name of a well-known company, or is so similar in spelling,
pronunciation or appearance to the name, trade name, trademark or service mark,
logo, or symbol of a well-known company as to borrow on the name of, or imply
affiliation with, the said well-known company. This rule shall apply whether or
not the company or business entity that would suffer the infringement is
licensed by the Insurance Commissioner or regulated by the Department of
Insurance, or is otherwise identified with the insurance industry.
(c) The name fails to state or clearly
indicate that the applicant or licensed producer is or will be an insurance
producer by any of the following:
(1) Failing
to include in its name the word "insurance" followed by one of the following
definitive words:
(A) "agency", "services",
"marketing", "sales", "solutions", "center;
(B) "broker", "brokers", or "brokerage", as
long as the applicant or licensed producer holds broker-authority and has a
broker's bond on file with the Commissioner; or,
(C) "associates", as long as the applicant or
licensed producer is applying for a business entity
license.
(2) An
administrator or applicant for an administrator certificate that fails to
include one of the following words in its name: "administrator",
"administrative", or "administration".
(3) A bail applicant or bail licensee that
fails to include the word "bail" in its name.
(d) The name states or implies, or would lead
reasonable persons to infer:
(1) That the
applicant or licensee is primarily engaged in some line of business other than
the insurance business, and the applicant cannot qualify for any of the
exceptions set forth in paragraphs (2), (3), and (4) of this
subsection.
(2) That the applicant
or licensee has expertise in the area of investment, tax shelter, financial or
estate planning or computer programming. An applicant may overcome this
objection by showing that the applicant qualifies under either of the two
following exceptions:
(A) An exception to
this rule may be made on a case by case basis where the applicant or licensee
holds a certificate as a broker\ dealer under California Corporations Code
Section
25210
and/or where applicant holds a certificate as an investment adviser under the
provisions of California Corporations Code Section
25230,
and applicant has submitted evidence satisfactory to the Commissioner that in
excess of 80% of applicant's net income from the said business entity for which
name approval is being sought is derived from sources of business other than
insurance. The foregoing exception is not available to an agent of a
broker-dealer, as the word "agent" is defined in California Corporations Code
Section
25003.
(B) An exception to this rule may be made on
a case by case basis where a licensee is seeking approval for the use as a
corporate name the same name, whether true or fictitious, in which he is
licensed as an unincorporated producer, provided the said licensee is an
officer owning 10% or more of the shares of the corporate applicant for
license. The foregoing exception, however, shall not be available to an
applicant or a licensee who purchases the unincorporated business or businesses
of another licensed producer subsequent to the adoption of these
regulations.
(3) That the
applicant or licensee is a regulated finance or mortgage company. An exception
to this rule may be made where the applicant presents evidence satisfactory to
the Commissioner that applicant's principal business is that of a regulated
finance or mortgage company and that 80% of applicant's net income from said
business entity is derived from sources of business other than insurance or
where the applicant presents a verified statement to the effect that insurance
coverage will be written only on those persons who are customers of the finance
or mortgage company generally identified with the name for which approval is
sought. This exception to the rule shall apply whether the applicant is a
regulated finance or mortgage company or is held or controlled by a regulated
finance or mortgage company.
(4)
That the applicant or licensee is engaged in any other business activity,
including but not limited to retail sales or benefits consulting. An exception
to this rule may be made where the applicant presents evidence satisfactory to
the Commissioner that applicant's principal business is that of retail sales
having nothing to do with insurance and that 80% of applicant's net income from
said business entity is derived from sources of business other than insurance
or where the applicant presents a verified statement to the effect that
insurance coverage will be written only on those persons who are customers of
the retail business generally identified with the name for which approval is
sought. This exception to the rule shall apply whether the applicant is the
said retail business entity or is held or controlled by such business
entity.
(e) The name
makes use of one or more of the following words or phrases in its singular or
plural form or a derivation of one or more of such words or phrases:
(1) "A," singly or in a series of such
capital letters as the initial part of a name;
(2) "Advisor";
(3) "Analyst," unless the licensee holds or
is applying for a Life and Disability Analyst License;
(4) "Assigned Risk";
(5) "Assurance Company" or "Assurance
Corporation" or "Assurance, Inc.";
(6) "Bureau";
(7) "Cal-Med";
(8) "Citius Altius Fortius";
(9) "Compensation";
(10) "Consultant";
(11) "Consumer";
(12) "Counselor" or "Counsellor";
(13) "Credit unless the licensee is a Credit
Union";
(14)
"Department";
(15) "Deposit
Insurance";
(16) "Excess", unless
the licensee holds or is applying for a Surplus Line Broker license;
(17) "E&S", unless the licensee holds or
is applying for a Surplus Line Broker license;
(18) "Federal";
(19) "Government";
(20) "Indemnity";
(21) "Institute";
(22) "Insurance" when comprising the last
word (e.g., Great Cliff Insurance) or preceding "Company" or "Corporation" or
"Incorporated" or "Inc.", or "Limited" or "Ltd", or "Limited Liability Company"
or "LLC", or "Limited Liability Partnership" or "LLP";
(23) "Insurer";
(24) "Insuror";
(25) "Investment";
(26) "Investor";
(27) "Life" when comprising the last word
(e.g., Acme United Life);
(28)
"Medi" when used as the first part or prefix of a word (e.g., Medical,
Medi-Cal, Medifund, Mediplan, and similar combinations);
(29) "Mortgage Guarantee" or "Mortgage
Guaranty";
(30)
"National";
(31) "Nationwide"
(except when an agent representing an insurance company whose name contains the
word "Nationwide" and the agent is authorized by said company to use the word
to identify with such insurer);
(32) "No Fault";
(33) "Olympic";
(34) "Olymiad";
(35) "Plan";
(36) "Reinsurance", unless the licensee holds
or is applying for a Reinsurance Intermediary-Broker or Reinsurance
Intermediary-Manager license;
(37)
"Reserve";
(38) "Social
Security";
(39) "State";
(40) "Statewide";
(41) "Trust";
(42) "Underwriter";
(43) "United States," "U.S." or
"U.S.A.";
(44)
"Veteran."
(f) The name
improperly makes use of one or more of the following words or phrases in its
singular or plural form or a derivation of one or more of such words or
phrases:
(1) "Administrator";
(2) "Advocate";
(3) "Affordable";
(4) "Asset";
(5) "Associate";
(6) "Broker";
(7) "California";
(8) "Care";
(9) "Cash";
(10) "Certified";
(11) "Cheap";
(12) "City";
(13) "Company";
(14) "Consolidate";
(15) "Cost";
(16) "County";
(17) "Discount";
(18) "Education";
(19) "Elder";
(20) "Enterprise";
(21) "Entitlement";
(22) "Equity";
(23) "Estate";
(24) "Expert";
(25) "Franchise";
(26) "Group";
(27) "Legal";
(28) "Long Term Care"
(29) "Money";
(30) "Mature";
(31) "Price";
(32) "Protection";
(33) "Provider";
(34) "Retire";
(35) "Safe";
(36) "Secure";
(37) "Securities";
(38) "Senior";
(39) "Specialist";
(40) "Tax";
(41) "Transcontinental."
1. Amendment
of section and new NOTE filed 12-29-2006; operative 1-28-2007 (Register 2006,
No. 52).
2. Change without regulatory effect amending subsection
(d)(2) filed 7-14-2021 pursuant to section
100, title 1, California Code of
Regulations (Register 2021, No. 29). Filing deadline specified in Government
Code section
11349.3(a)
extended 60 calendar days pursuant to Executive Order
N-40-20.
Note: Authority cited: Section
790.10,
Insurance Code Reference: Section
1724.5,
Insurance Code.
