California Life and Health Insurance Practice Exam

All of these are reasons the Commissioner may disapprove a licensee's request to use a fictitious name EXCEPT?

1. The name is confusingly similar to a competitor

2. The name is misleading to the public

3. The name is the licensee's actual name

4. The name implies a level of expertise not held by the licensee

The correct answer is: The name is the licensee's actual name

The correct answer highlights that the use of a licensee's actual name does not constitute a valid reason for disapproval of a request to use a fictitious name. In the context of insurance regulations, a fictitious name is meant to be a name under which a business operates that is different from the legal name of the entity or individual behind it. When a licensee wishes to use their real name, it does not mislead or confuse the public about who they are or their qualifications. The other options describe circumstances that can legitimately raise concerns for the Commissioner. For example, if a name is similar to that of a competitor, it could confuse consumers and cause issues in the marketplace. Similarly, a name that misleads the public or implies qualifications that the licensee doesn’t possess could be considered harmful and warrant disapproval. Thus, having a licensee's actual name does not fit into these categories of potentially problematic names.