Los Angeles Claims Adjuster Property and Causality Practice Exam

What is required from an insurance producer who wishes to use a trade name?

1. A notification to clients

2. Written notification to the Commissioner of Insurance

3. A fee payment

4. A verbal agreement

The correct answer is: Written notification to the Commissioner of Insurance

An insurance producer must provide written notification to the Commissioner of Insurance if they intend to use a trade name. This requirement exists to ensure that the trade name is registered and accurately reflects the producer's business activities. The notification serves various purposes, such as consumer protection, maintaining industry standards, and preventing potential fraud by ensuring that the trade names being used are legitimate and associated with the proper licensing. The expectation for written notification emphasizes the importance of formal processes in the insurance industry, allowing regulatory bodies to keep track of the various entities operating under trade names and ensuring compliance with state laws. This process facilitates transparency and enables clients to make informed decisions about the insurance producers they work with.