South Carolina Insurance Practice Exam

What is the required action to be taken by a South Carolina licensee before operating under an assumed business name?

1. Submit a new application

2. Notify the Director

3. File a DBA certificate

4. Change the existing license

The correct answer is: Notify the Director

The required action a South Carolina licensee must take before operating under an assumed business name is to file a DBA (Doing Business As) certificate. This certificate ensures that the assumed name is officially registered and recognized by the state, and it protects the public from confusion regarding the identity of the business. By filing a DBA, the licensee is complying with state regulations that promote transparency in business operations. It also serves to establish the legitimacy of the business under the assumed name, which is particularly crucial for consumer trust and legal accountability. Notifying the Director, while potentially important in other contexts, is not the primary step required for operating under an assumed business name. Submitting a new application or changing an existing license does not pertain to the formal acknowledgment of a DBA, as these actions are generally associated with changes to the structure or ownership of the business rather than just the name.