Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 19 - LICENSING AND REGULATION OF INSURANCE PROFESSIONALS › Subchapter J - STANDARDS OF CONDUCT FOR LICENSED AGENTS › Section 19.902 - One Agent, One License

Current through Reg. 49, No. 28; July 12, 2024
(a) Only
				  one license of the same type permitted. No agent may hold more than one license
				  of the same type currently in effect. An agent doing an insurance business
				  subject to the provisions of this subchapter must have the agent's license
				  certificate issued in the agent's true name. If an individual is authorized to
				  act as a particular type of agent, that individual need not obtain an
				  additional license in order to participate in a licensed partnership or
				  corporate agency of the same type, but the partnership or corporation must
				  obtain a separate license. Any licensed agent may have additional offices or do
				  an insurance business under assumed names without obtaining an additional
				  license; provided, however, each agent must furnish the Texas Department of
				  Insurance with a certification showing any and all assumed names that the agent
				  will use. Where such a filing is required under the Assumed Business or
				  Professional Name Act (Texas Business and Commerce Code Chapter 71, concerning
				  Assumed Business or Professional Name), or any similar statute, the agent must
				  provide the Texas Department of Insurance with a copy of the valid assumed name
				  certificate reflecting proper registration of each assumed name used by the
				  agent.
(b) Standards for approval
				  and disapproval of names to be used by licensed agents.
(1) Name states or implies insurance
				  capabilities not permitted under licenses applied for or held. No name proposed
				  by an applicant or license will be approved if such name states or implies, or
				  would lead reasonable persons to infer, that the applicant or licensed agent is
				  an insurer, motor club, hospital service plan, health maintenance organization,
				  continuing care retirement community, or other entity entitled to engage in
				  insurance activities which in fact are not permitted under licenses applied for
				  or held.
(2) Name states or implies
				  ability to act as an insurer or guarantor. No name proposed by an applicant or
				  licensee will be approved if such name states or implies, or would lead
				  reasonable persons to infer, that the applicant or licensee is an insurer or
				  guarantor. Nothing in this subsection prohibits the following:
(A) any agent from indicating that such agent
				  is an authorized representative of an admitted insurer if such agent is also
				  clearly designated as an agent representing such insurer; or
(B) any agent from using a name which
				  includes "underwriter," "underwriters," or "underwriting."
(3) When name is misleading. No name proposed
				  by an applicant or licensee (other than the true name of an individual) will be
				  approved if it appears that use of the proposed name may mislead the public in
				  any respect. A disapproval under this paragraph may be based on one or more of
				  the criteria listed in subparagraphs (A) - (C) of this paragraph.
(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 fails to state or clearly
				  indicate that the applicant or licensee is or will be an insurance agent and
				  the name states or implies, or would lead reasonable persons to infer:
(i) that the applicant or licensee is
				  primarily engaged in some line of business other than the insurance
				  business;
(ii) that the applicant
				  or licensee has expertise in the area of investment, tax shelter, financial or
				  estate planning, or computer programming; or
(iii) that the applicant or licensee is a
				  public interest organization seeking to educate consumers or perform research
				  for the public's benefit.
(C) The name makes use of one or more of the
				  following words or phrases or a derivation of one or more of such words or
				  phrases in a misleading manner:
(i)
				  "administrator";
(ii)
				  "advisor";
(iii)
				  "agency";
(iv) "America" or
				  "American";
(v)
				  "analyst";
(vi) "assigned
				  risk";
(vii) "associate";
(viii) "association";
(ix) "assurance company" or "assurance
				  corporation" or "assurance, incorporated";
(x) "benefit";
(xi) "broker";
(xii) "bureau";
(xiii) "care";
(xiv) "city";
(xv) "company";
(xvi) "compensation";
(xvii) "consultant";
(xviii) "consumer";
(xix) "coop" or "cooperative";
(xx) "corporation" or "Corp.";
(xxi) "counselor";
(xxii) "county";
(xxiii) "credit union";
(xxiv) "department";
(xxv) "deposit insurance";
(xxvi) "federal";
(xxvii) "financial advisor" or "financial
				  consultant" or "financial planner";
(xxviii) "government";
(xxix) "group";
(xxx) "HMO" or "health maintenance
				  organization";
(xxi) "incorporated"
				  or "Inc.";
(xxxii) "Indemnity
				  Company" or "Indemnity Corporation" or "Indemnity Inc.";
(xxxiii) "insurer" or "insuror";
(xxxiv) "investment";
(xxxv) "investor";
(xxxvi) "Medi" when used as the first part of
				  prefix of a word leg;
(xxxvii)
				  "mortgage guarantee" or "mortgage guaranty";
(xxxviii) "national";
(xxxix) "nationwide";
(xl) "no fault";
(xli) "plan";
(xlii) "referral";
(xliii) "research";
(xliv) "reserve";
(xlv) "savings";
(xlvi) "senior";
(xlvii) "service";
(xlviii) "social security";
(xlix) "state";
(l) "statewide";
(li) "Texas";
(lii) "trust";
(liii) "United States," "US," or "USA"; or
(liv)
				  "veteran."
(D) The list
				  of words and phrases appearing in subparagraph (C) of this paragraph is
				  representative only. Such list is intended to serve as a standard or guideline
				  and will not be considered as enumerating the only words or phrases which might
				  be used in a manner that would be misleading or would have the capacity or
				  tendency to mislead the public in any respect. Subparagraph (C) of this
				  paragraph may be amended from time to time as conditions warrant
				  revision.
(4) Review of
				  disapproval of proposed name by Commissioner. Any applicant or licensee whose
				  proposed name has been disapproved pursuant to these standards may request a
				  hearing before the Commissioner. Such request for hearing must be in writing
				  and must be submitted to the Commissioner no later than 30 days from written
				  notice to the applicant or licensee of disapproval.
(5) Enforcement of standards. The standards
				  established by these regulations are applicable to names filed with the Texas
				  Department of Insurance upon the effective date of these rules. Agents may
				  continue to use the name(s) under which they are licensed. The adoption of
				  these regulations does not affect the authority of the department to order an
				  agent to discontinue the use of a name that is shown to mislead the public and
				  violate Insurance Code Chapter 541, concerning Unfair Methods of Competition
				  and Unfair or Deceptive Acts or Practices, or rules adopted under it; provided,
				  however, that any such action by the department must be conducted in accordance
				  with the Insurance Code.