Current through Register 2024 Notice Reg. No. 38, September 20, 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.