AEA Ins. Co. v. Garamendi
The appellants in this case are related insurance companies incorporated in the British Virgin Islands. They are in the business of selling automobile insurance policies which provide coverage to residents of Mexico for travel in California. In operating their business, appellants retained the services of an insurance agent in California who issued policies to subagents and received premium payments on their behalf. They also retained the services of a California claims adjuster who adjusted claims for accidents that occurred in California and were covered on policies they issued.
Because appellants do not have certificates of authority permitting them to transact business in California, the California Insurance Commissioner issued appellants a cease and desist order. Appellants challenged the order administratively and an administrative law judge upheld the commissioner's order. Appellants then filed a petition for a writ of mandate, which the trial court denied.
Court affirm.
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