Bodenhamer

The sole issue in this mandate proceeding is whether the Unfair Trade Practices Act (Act) of the Insurance Code (Ins. Code, § 790 et seq.; see also § 1620.2) which regulates trade practices in the business of insurance applies to independent claims adjusters. We hold that it does.

I.

In November 1981, Bodenhamer Jewelers was burglarized as a result of which petitioners, Ronald and Nada Bodenhamer, filed claims under insur anee policies issued by St. Paul Fire & Marine Insurance Company and Lexington Insurance Company. Both insurance companies hired General Adjustment Bureau (GAB), to adjust the claims. When disputes arose concerning the amount of the claims, petitioners filed suit against the insurers, against Coldwell-Banker, insurance brokers, and against real parties in interest, GAB and Richard C. Rosa, the GAB employee who processed the claim. As to real parties, petitioners alleged fraudulent misrepresentations and violations of section 790.03.

In a motion for summary judgment or partial adjudication of issues, real parties challenged the cause of action for violation of subdivision (h) of section 790.03, on the ground that this section does not apply to…