Illinois has become the 17th state to reach a settlement with a California-based human resources software startup for alleged insurance code violations.
Illinois Department of Insurance investigators found the startup Zenefits violated state law by allowing unlicensed employees to sell insurance to Illinois-based businesses. The department announced the settlement on Feb. 1.
The company has agreed to pay a civil forfeiture of up to $560,000. Of that amount, $100,000 will be suspended pending the successful completion of a probation period.
Zenefits has replaced its top management and has instituted new controls and procedures to ensure that its employees are properly trained and licensed. The Illinois Department of Insurance will continue to monitor the company’s practices to ensure compliance with Illinois law.
Was this article valuable?
Here are more articles you may enjoy.
Old Republic to Acquire Small Farmowner Insurer Everett Cash Mutual 
GEICO Sues Medical Firms in Florida, NY Over Alleged No-Fault Auto Fraud 
Update: Catastrophe Bond Investors Told to Brace for Jamaica Payout 
Alaska Airlines Vows IT Upgrades After Outage Forces 400 Flight Cancellations 
