| (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";
(xxxi) "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.
(c) An agent must register any assumed name using instructions
provided on the department's website.
|
| Source Note: The provisions of this §19.902 adopted to be effective October 6, 1987, 12 TexReg 3331; amended to be effective April 3, 1990, 15 TexReg 1589; amended to be effective April 26, 2021, 46 TexReg 2824; amended to be effective June 19, 2023, 48 TexReg 3285 |
