Krumme v. Mercury Insurance
California Court of Appeal
1Opinion of the Court
Opinion
KAY, P. J.
Insurance Code section 1704 1 requires that certain kinds of insurance may be sold only by what are known as “appointed agents”— persons for whom the insurer has filed with the Insurance Commissioner a notice of appointment formally designating the person to act on the insurer’s behalf. A trio of related insurers (which for purposes of simplicity will hereinafter be collectively referred to as Mercury) sold policies of automobile insurance within the state through “broker-agents” who are not appointed agents. Suit was instituted to stop this practice, as well as permitting…
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