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The following opinion is presented on-line for informational use only and does not replace the official version. (Mich Dept of Attorney General Web Site - www.ag.state.mi.us) STATE OF MICHIGAN FRANK J. KELLEY, ATTORNEY GENERAL Opinion No. 5756 August 19, 1980 INSURANCE: Use of term 'insurance' in corporate name of agency A corporate insurance agency may use the word 'insurance' in its corporate name providing that it is used in conjunction with the word 'agency'. E. C. Mackey Acting Commissioner Michigan Insurance Bureau Department of Commerce 1048 Pierpont Street Lansing, Michigan You have requested my opinion on the question of whether a corporate insurance agency is precluded by law from using the word 'insurance' in its corporate name. Prior to January 1, 1973, the general corporation act, 1931 PA 327, Sec. 6; MCLA 450.6; MSA 21.6, prohibited the use by a corporation, which was not an insurance company, of the word 'insurance' in its corporate name. 1931 PA 327, Sec. 6, supra, in pertinent part, provided: 'No corporation shall assume any name which is likely to mislead the public, or any name already in use by any other existing corporation of this state, or corporation lawfully carrying on business in this state, or so nearly similar thereto as to lead to confusion or deception: Provided, That in the case of a foreign corporation applying for admission to this state whose name is similar to that of any domestic corporation or of any foreign corporation already admitted into this state, but each having respectively the name of a different locality as a part of its corporate name, such names so distinguished shall not be deemed sufficiently similar as to lead to confusion or deception: And provided further, That no corporation formed or existing under or subject to the provisions of this act shall assume any name which implies that it is a banking corporation, an insurance or surety company or a trust company, and no such corporation shall use the words, 'bank', 'industrial bank', 'deposit', 'insurance', 'surety', 'security', 'trust', 'trust company', or 'guaranty' or 'building and loan' in its corporate name, or use any combination of letters or words along with other letters or words in its corporate name to indicate or convey the idea of a bank or banking or industrial banking activity or security: And provided further, That any nonprofit corporation formed or existing under or subject to the provisions of this act as a bona fide insurance trade association shall be entitled to use the word insurance as a part of its corporate name: Provided, That such name clearly indicates that the nonprofit corporation is an insurance trade association and is not engaged in the insurance business.' (Emphasis added.) Relying upon this statute, the Attorney General in OAG, 1930-1932, p 601 (June 10, 1932) ruled that a corporation organized under the general corporation laws of this state was prohibited from using the word 'insurance' in its corporate name, even though the word 'agency' was also used in the name of the corporation. 1931 PA 327, Sec. 6, supra, was repealed by the Business Corporation Act, 1972 PA 284, MCLA 450.1101 et seq; MSA 21.200(101) et seq. 1972 PA 284, supra, Sec. 213, provides: 'A corporation formed or existing under or subject to this act other than a bank holding company registered or to be registered as a bank holding company under the bank holding company act of 1956, being 12 U.S.C. sections 1841 to 1850, shall not assume a name which implies that it is a banking corporation, an insurance or surety company, or a trust company, and the corporation shall not use the word 'bank', 'industrial bank', 'deposit', 'surety', 'security', 'trust', or 'trust company' in its corporate name to indicate or convey the idea of a bank or banking or industrial banking activity or security unless from the other words constituting the name, it is clear that the business conducted does not include the business of banking.' A review of the legislative history of 1972 PA 284, supra, indicates that it was originally introduced as Senate Bill 602, and initially proposed prohibiting the use of the word 'insurance' in the corporate name of a company that was not an insurance company. However, after referral to the Committee on Corporations and Economic Development, Senate Bill 602 emerged with the Committee's recommendation that the word 'insurance' be stricken. 1 Senate Journal 1972, p 92. This recommendation was adopted. 1 Senate Journal 1972, p 132. 1972 PA 284, Sec. 213, supra, was subsequently enacted. The word 'insurance' does not appear in that section of the act. It is my opinion, therefore, that 1972 PA 284, Sec. 213, supra, does not preclude the use of the word 'insurance' in the name of a corporate insurance agency, provided that the word 'insurance' is used in conjunction with the word 'agency' so as not to mislead the public or imply that the corporation is an insurance company. Frank J. Kelley Attorney General
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