Pollak

The Insurance Commissioner of the State of California (hereinafter Commissioner), sued herein as Department of Insurance of the State of California, appeals from a judgment granting a writ of mandate.

Section 1738 of the Insurance Code provides for the suspension of an insurance agent’s license for any cause constituting grounds for denial of a license application under section 1668, which includes a showing of “incompetency or untrustworthiness in the conduct of any business . . . .” (Subd. (j).) Resolution of the issues presented by the Commissioner’s appeal turns upon an interpretation of the term “incompetency” within the meaning of the statutory provision. For reasons which we explain, we conclude that the trial court correctly determined that no incompetency was shown. Accordingly, we affirm the judgment.

Facts

The parties concede the facts are undisputed which, in relevant part, are summarized as follows:

The Meaning of “Incompetency ”

Although the Legislature has provided a similar standard of unprofessional conduct for disciplinary purposes for a number of licensed business activities, neither party has cited nor have we independently found any decision…