No true or fictitious name proposed by an applicant or licensed producer shall be approved if such name states or implies, or would lead reasonable persons to infer, that the applicant or licensed producer is an insurer, motor club, hospital service plan, or other entity entitled to engage in insurance activities which in fact are not permitted under held or applied for licenses. This rule is intended to apply to names which are objectionable in and of themselves and, therefore, this rule shall apply whether or not the name proposed for use by an applicant or licensed producer would interfere with, or would be too similar to, a name already approved for use by another applicant or licensee.
Cal. Code Regs. Tit. 10, § 2052.2