Mor-Ben Insurance Markets Corp. v. Department of Insurance

Petitioners Mor-Ben Insurance Markets Corporation and Morton Hoffman appeal a judgment denying their petition for writ of mandate against the State of California Department of Insurance (Department).

The Department revoked petitioners’ licenses to engage in the insurance business and denied their applications for additional licenses. The Department found petitioners violated the Insurance Code by knowingly making false representations in processing a claim and by acting as agent for and aiding and abetting a Pakistani insurance company to transact insurance in California without obtaining a certificate of authority. The superior court upheld the Department’s decision. We affirm.

I

In March 1976 the Department licensed Mor-Ben as an “insurance broker,” “surplus line broker” and “special lines’ surplus line broker.” Hoffman was licensed as a “transactor” under Mor-Ben’s licenses.

In October 1979 Mor-Ben executed a management agreement with Pioneer Insurance Company, a Pakistani company not licensed by the Department to transact insurance business as an insurer in California. Under the management agreement, Pioneer appointed Mor-Ben its sole manager for transacting…