What is required before a licensee can use an assumed name for their business?

In the context of insurance licensing, it is essential for a licensee to notify the commissioner before using an assumed name for their business. This requirement ensures that all business operations comply with state regulations and maintains transparency within the industry. By notifying the commissioner, the licensee allows for a proper review and approval process that helps uphold standards and protects consumers.

The rationale behind this requirement includes the need to prevent fraud and misleading representations that could arise from using an unregistered or unapproved business name. The commissioner’s oversight also allows for a record of business entities in the insurance sector, facilitating accountability and regulatory compliance.

Using an assumed business name without prior notification could lead to disciplinary actions or penalties against the licensee, as it undermines the regulatory framework established for the insurance industry. Overall, obtaining this notification is a critical step in maintaining professionalism and compliance with state law.