ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fifth Legislature

Second Regular Session

Senate: FIN DP 9-0-1-0 | 3rd Read 29-0-1-0

SB 1394: DIFI; business name; trade name

Sponsor: Senator Livingston, LD 22

Committee on Commerce

Overview

Provides requirements for certain licensees under the jurisdiction of the Arizona Department of Insurance and Financial Institutions (DIFI) using an assumed or trade name.

History

DIFI regulates the insurance industry as well as financial institutions and enterprises by issuing licenses, conducting examinations and investigating complaints.

Licensed mortgage brokers, mortgage bankers and loan originators are required to use the name and license number as issued on the business license, except that certain licensees may employ or refer to the commonly used name and any trademarks or service marks of any affiliate, when advertising for or soliciting business in any manner. (A.R.S. §§ 6-903, 6-943, 6-991.02).

Provisions

1.   Stipulates an enterprise or a consumer lender is not required to obtain a separate license when doing business under an assumed name or trade name provided a written notification is submitted to DIFI prior to using the assumed name or trade name. (Sec .1)

2.   Prohibits the use of an assumed name or trade name that:

a)   is so substantially similar to another licensee's name that it may cause uncertainty or confusion; or

b)   tends to deceive or mislead the public as to the nature of business that the licensee conducts. (Sec. 1)

3.   Prohibits a loan originator, real estate appraiser or property tax agent from using an assumed name or trade name. (Sec. 1)

4.   Directs a person to notify DIFI within 15 days after any material change to the information sent to DIFI regarding the used assume name or trade name. (Sec. 1)

5.   Requires the license name or other assumed name or trade name to be contained in a debt management company's advertising, communication and sales materials. (Sec. 3)

6.   Permits a licensed mortgage broker, mortgage banker or commercial mortgage banker to advertise or solicit mortgage business using an assumed name or trade name that has been submitted to DIFI. (Sec. 4, 5, 6)

7.   Removes the authorization for certain licensees to employ or refer to the commonly used name and any trademarks or service marks of any affiliate. (Sec. 4, 5)

8.   Clarifies a loan originator cannot advertise for or solicit mortgage business in any manner without the employer's name, or other assumed name or trade name, and the employer's license number. (Sec. 7)

9.   ☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteRequires a sales finance company licensee, when transacting business, to use the license name or other assumed name or trade name that was submitted to DIFI. (Sec. 8)

10.  Makes technical and conforming changes. (Sec. 2, 4, 5, 6, 8)

 

 

 

 

 

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                        SB 1394

Initials PRB     Page 0 Commerce

 

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