M&F Fishing, Inc. v. Sea-Pac Insurance Managers, Inc.

This is an action alleging violations of the unfair competition law (UCL; Bus. & Prof. Code, 1 § 17200 et seq.) predicated on violations of the Insurance Code. M&F Fishing, Inc. (M&F), and C&F Fishing, Ltd. (C&F) (together, respondents), owned and operated commercial fishing companies. Between 1996 and 2003, respondents purchased commercial marine insurance from Sea-Pac Insurance Managers, Inc., doing business as Sea-Pac Insurance Services (Sea-Pac), Raleigh, Schwartz & Powell, Inc., Brown & Brown of Washington, Inc. (B&B Washington), a subsidiary wholly owned by Brown & Brown, Inc. (B&B), and Sharon Edmondson (Edmondson; together, appellants).

Respondents sued appellants in 2004 claiming they violated certain provisions of the Insurance Code in connection with the sale of such insurance *1513 because, among other allegations, appellants lacked a special lines’ surplus lines broker license to sell insurance issued by a “nonadmitted” insurer (e.g., a carrier that has not submitted to Cal. regulation and supervision) and because appellants failed to provide respondents with a “disclosure statement” required for each placement of nonadmitted coverage. Respondents alleged…