State RegulationsPA specificDifficulty 2/5
A producer wants to market her services under an assumed business name rather than her own. What does Pennsylvania law require?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
40 P.S. § 310.7 requires a licensee who will conduct business under an assumed name to notify the Pennsylvania Insurance Department, so the public and the department can connect the trade name to the licensed individual. The license attaches to the person; the assumed name is permitted only inside that transparency. Using an unregistered trade name puts the licensee outside her authority.
Why the other options are wrong
- A) Secrecy is inconsistent with 40 P.S. § 310.7; the department must know which licensee operates behind the trade name.
- C) The insurer has no ownership role in the producer's trade name; the statutory duty runs from the licensee to the Pennsylvania Insurance Department.
- D) The assumed-name rule applies to licensees generally, not to one line of authority.
Memory hook
Trade name, known name — the department must see both.