Colorado Life Producer License Practice Test

If a producer wants to use an assumed name for their business, what must they do?

1. Notify the clients

2. Register the name with the commissioner

3. Submit an application for review

4. Change their business structure

The correct answer is: Register the name with the commissioner

When a producer wants to use an assumed name for their business, it is essential for them to register that name with the commissioner. This process ensures that the assumed name is officially recognized and complies with state regulations. Registering the name not only protects the producer's legal standing but also helps maintain transparency within the industry, especially for clients and regulatory bodies. This step emphasizes the importance of accountability in business practices, allowing clients to have clear and trustworthy information about the producers they work with. A registered assumed name also helps avoid potential legal disputes over business identity and branding in the marketplace. Other actions such as notifying clients, submitting an application for review, or changing the business structure may be important in different contexts, but they do not fulfill the requirement of formalizing the use of an assumed name.