Quackenbush

California’s Insurance Commissioner appeals from a judgment holding he cannot revoke an insurance broker’s license for refusing to permit a warrantless search of the books and records the broker is required by law to maintain. We affirm.

Facts and Proceedings Below

The facts are not in dispute.

The California Department of Insurance received an anonymous complaint alleging certain insurance agencies in the Los Angeles area were selling insurance through unlicensed agents. The department began an inquiry which eventually led it to the office of Jose De La Cruz, a licensed broker.

A department investigator went to De La Cruz’s office unannounced and asked to see a list of his employees and to review his trust account records. De La Cruz told the investigator the persons who maintained their records were not in the office, it being late on a Friday afternoon. The investigator told De La Cruz he would return the following week and to have the personnel and trust account records available for inspection.

Prior to returning to De La Cruz’s office, the investigator received a telephone call from De La Cruz’s attorney, who asked why the investigator wanted to see his…