California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 1 - Production of Insurance › Article 1 - Standards for Approval and Disapproval of Names of Insurance Producers › Section 2050.1 - Purpose

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
California Insurance Code Section
					 1724.5
					 provides that the Commissioner may, in writing, disapprove the use of any true
					 or fictitious name (other than the bona fide natural name of an individual) by
					 any licensee on any of the following grounds:
(a) Such name is an interference with or is
				  too similar to a name already filed and in use by another licensee;
(b) The use of the name may mislead the
				  public in any respect;
(c) The name
				  states or implies that the licensee is an insurer, motor club, hospital service
				  plan or entitled to engage in insurance activities not permitted under licenses
				  held or applied for;
(d) The name
				  states or implies that the licensee is an underwriter. This subdivision shall
				  not prevent natural persons who are life licensees from describing themselves
				  as an "underwriter" or from using the designation "Chartered Life Underwriter"
				  if entitled thereto nor shall it prevent a natural person who is a fire and
				  casualty licensee from using the designation "Chartered Property and Casualty
				  Underwriter" entitled hereto nor a producers trade association each member of
				  which is also separately licensed from having a name containing the word
				  underwriter; or
(e) The licensee
				  has already filed and not discontinued the use of more than two names including
				  the true name. This subdivision shall not prevent a licensee who has lawfully
				  purchased or succeeded to the business or businesses of other licensees from
				  using for each such business not more than two additional names, true or
				  fictitious, consisting of names used by the licensee's predecessors in the
				  conduct of such businesses.
The purpose of these regulations is to promulgate the
					 criteria whereby the Commissioner disapproves an application for name approval
					 filed by or on behalf of an applicant or licensed producer and to set forth the
					 Commissioner's interpretation of the terms and provisions appearing in
					 subsections (a), (b), (c), (d), and (e) of Section
					 1724.5 of
					 the Insurance Code, and to specify a list of words or phrases that shall serve
					 as the grounds for disapproval if used (or in some cases if used improperly) in
					 a producer's name. The list of such words and phrases appearing in these
					 regulations is representative only and is intended to serve as a standard or
					 guideline and shall not be construed as the only words or phrases which when
					 used, or when used improperly, would be misleading or would have the capacity
					 or tendency to mislead the public in any respect. Subsections (d) and (e) of
					 Section 2052.4 of these regulations will
					 be amended from time to time as conditions warrant the revision of the list of
					 objectionable words and phrases.
1. Change
					 without regulatory effect amending subsections (d) and (e) 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.