United States Liability Insurance Co. V. Haidinger-Hayes Inc‪.‬

Plaintiff insurance company, an out-of-state corporation, entered into a general agency contract with defendant Haidinger-Hayes, Inc., a licensed California insurance agent, effective March 31, 1959. Under the terms of their agreement defendant corporation had authority to solicit and underwrite proposals for insurance, to determine the premium rate, and to issue contracts of insurance in the 11 western states in plaintiff's behalf. The consideration to it was 20 percent of the premiums paid. Numerous policies were solicited, underwritten and issued pursuant to this agreement. It was cancelled on December 12, 1963, at the request of plaintiff because of excessive loss history under a policy of liability insurance issued to Crescent   Wharf and Warehouse Company and its wholly owned subsidiaries (hereinafter all referred to as "Crescent").