California Insurance Code Section 1724.5 provides that the Commissioner may, in writing, disapprove the use of any true or fictitious name (other than the bona fide natural name of an individual) by any licensee on any of the following grounds:

The purpose of these regulations is to promulgate the criteria whereby the Commissioner disapproves an application for name approval filed by or on behalf of an applicant or licensed producer and to set forth the Commissioner's interpretation of the terms and provisions appearing in subsections (a), (b), (c), (d), and (e) of Section 1724.5 of the Insurance Code, and to specify a list of words or phrases that shall serve as the grounds for disapproval if used (or in some cases if used improperly) in a producer's name. The list of such words and phrases appearing in these regulations is representative only and is intended to serve as a standard or guideline and shall not be construed as the only words or phrases which when used, or when used improperly, would be misleading or would have the capacity or tendency to mislead the public in any respect. Subsections (d) and (e) of Section 2052.4 of these regulations will be amended from time to time as conditions warrant the revision of the list of objectionable words and phrases.