It is also a violation of N. Y. Ins. The subsidiaries, by using a name they are not licensed under and that they know may mislead the public, would be engaging in untrustworthy conduct in violation of Section 2110. In addition, N. Y. Gen. Bus. N. Y. Gen. Bus. Each certificate shall be executed and duly acknowledged by the person or, if there be more than one, by all of the persons conducting the business.
False advertising is a class A misdemeanor.
In conclusion, a subsidiary can only use the name the Department licensed it to use. It must file and get approval from both this Department and the county clerk to use a brand name or any other name. If these procedures are not followed, the subsidiary is prohibited from using any other name, including the name of its parent company, in advertisements or business transactions. In using the name of the parent company in advertisements, prospective insureds are likely to believe that the services will be provided by the parent company. However, if they attempt to purchase the services, they would be channeled to the subsidiaries, whose names were not used in the advertisement.