State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
A California insurance agent wants to advertise and transact business under a catchy business name that is not the agent's own legal name. Under Sections 1724.5 and 1729.5, the agent:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
California requires that a licensee transacting under a fictitious or trade name obtain approval of that name from the Commissioner. This ensures consumers can identify who is actually licensed behind a brand name and prevents deceptive or misleading business names in the insurance marketplace.
Why the other options are wrong
- B) Unapproved fictitious names are prohibited in the insurance business; the Commissioner must approve the name first.
- C) County registration does not satisfy the Insurance Code requirement of Commissioner approval.
- D) Fictitious names are permitted in insurance, but only with the required approval.
Memory hook
Fancy name, formal approval. The Commissioner must sign off before the brand goes to market.