Current through Register 2024 Notice Reg. No. 38, September 20, 2024
For the purpose of this Section, the meaning of the word "name"
includes a name that has been reserved pursuant to Insurance Code Section
881 and includes
a proposed name for which an application is pending before the Commissioner.
(a) A name is too similar to or is an interference
with the name of a business, other entity or Licensee if:
(1) the first two words, initials or numbers of
the proposed name are identical to the first two words, initials or numbers of the
name of a business, entity or Licensee, other than an Affiliate.
(2) it contains words or phrases used in the name
of another Licensee, other than an Affiliate, that are not general words or phrases
or are not commonly used in the names of Licensees.
(3) it contains a coined word (i.e., a word that
is made up) that is part of the name of a business, entity, or Licensee, other than
an Affiliate.
(4) it is so similar in
words, usage, word order, spelling, pronunciation, or appearance to the name, logo,
symbol, trademark, trade name, or service mark of a well-known business or entity
(other than an Affiliate) or Licensee (other than an Affiliate) as to borrow on the
name of, or imply affiliation with, or create a likelihood of confusion with the
name of such business, entity or Licensee. The foregoing applies regardless whether
the business or entity is licensed or regulated by the Insurance Commissioner or is
otherwise identified with the insurance industry.
(5) it is identical in words, regardless of order,
to the name of a Licensee (including an Affiliate).
(b) a name is likely to mislead the public if:
(1) it would tend to cause the public to believe
that the Applicant offers, or will offer, classes or types of insurance that it does
not or will not offer.
(2) it includes
the name of a state or other jurisdiction other than the state or jurisdiction in
which the Applicant is domiciled.
(3) it
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.
(4) it is the same as, closely
resembles, borrows on the name of, implies affiliation, or is too similar to the
name of a bank, savings association, trust company, industrial loan company, or
other financial institution that it not an Affiliate of the Applicant.
(5) it contains words or numbers indicating or
implying that it was organized or commenced transacting business prior to another
Licensee or Applicant, whether or not the Licensee or other Applicant is an
Affiliate.
(6) it would lead the public
to believe that the Applicant is an insurance agent, life agent, insurance broker,
insurance solicitor, or other holder of a license specified in Insurance Code Part
2, Chapters 5 and 7.
(c) In
addition to the circumstances set forth in Subdivisions (a) and (b), the
Commissioner may exercise discretion to determine that a name is too similar to or
is an interference with the name of a business, other entity or Licensee, or is
likely to mislead the public under other circumstances on a case by case
basis.
1. New section
filed 10-11-2010; operative 11-10-2010 (Register 2010, No.
42).
Note: Authority cited: Sections
700,
720 and
790.10,
Insurance Code; CalFarm Ins. Co. v. Deukmejian, (1989) 48 Cal.3d 805; and 20th
Century Ins. Co. v. Garamendi, (1994) 8 Cal. 4th 216. Reference: Sections
742.42,
790.02,
790.03,
880,
881,
881.1,
881.2,
881.5,
882,
882.5,
883,
10970,
12162,
12389 and
12743, Insurance
Code.
