New Jersey Life Producer Practice Exam

How long does a business name authorization last before it expires?

1. 6 months

2. 12 months

3. 24 months

4. 36 months

The correct answer is: 12 months

A business name authorization typically lasts for 12 months before it expires. This timeframe allows businesses to register their names with the appropriate state authorities, ensuring that they are officially recognized as operating under that name. It's an important aspect for maintaining the legitimacy of the business, as well as protecting the name from being used by others. After this period, businesses must renew their authorization to continue using the name legally. This helps support the regulation of business practices and ensures that names are not indefinitely held without active use.