Gurewitz

Gurewitz and G.F.S. Insurance Agency, Inc. (GFS) (hereafter collectively Gurewitz) 1 appeals from a judgment denying his *463 petition for a writ of mandate to compel the Insurance Commissioner to vacate his decision revoking the insurance licenses and licensing rights of Gurewitz for a violation of Insurance Code section 1734. He contends that: 1) there could be no violation of the statute as his relationship with Fireman’s Fund (Fireman’s) was a joint venture or partnership rather than an agency; 2) even if the statute applies, there is insufficient evidence to establish a violation of section 1734, pursuant to the applicable “clear and convincing evidence” standard; and 3) the penalty imposed by the insurance commissioner was too severe, as there had been no appropriation or diversion of funds for personal use. For the reasons set forth below, we have concluded that there is no merit to any of these contentions and that the judgment must be affirmed.

The facts are not in dispute and are as follows: Since 1953, Gurewitz had been licensed as an insurance broker under several individual and corporate licenses. He directed and controlled the insurance business of each of…