California Company’s Workers’ Comp Program Declared Illegal

October 20, 2016

California Insurance Commissioner Dave Jones moved to stop a central valley company from selling workers’ compensation and liability policies because they are not properly registered with the Department of Insurance.

In a cease and desist order served on Monday the department alleges Agricultural Contracting Services Association Inc., doing business as American Labor Alliance and its affiliate CompOne USA, are soliciting, marketing, selling, and issuing to employers statewide what the company claims are valid workers’ comp policies when in fact department investigators found are not properly registered.

The department said the company is allegedly transacting insurance without proper authority.

“Employers who purchased insurance from American Labor Alliance are likely at great financial risk,” Jones said in a statement. “Employers must protect themselves, their employees, and their business by checking with the Department of Insurance to verify the company and agent or broker’s license is valid and that the policy they purchased is also valid.”

mass-workers-comp-ratesAn ALA representative did not immediately return a call for comment.

ALA attracted customers by marketing low workers’ comp premium rates, but the end result is employers holding “worthless pieces of paper” because the policies are not valid, according to the department.

ALA has requested an administrative hearing before an administrative law judge. The hearing is not yet set.

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Latest Comments

  • October 4, 2017 at 2:10 pm
    Kanya Ellington says:
    My understanding is that CompOneUSA is self funded. I would think that when determining whether a workers comp benefit is, as you say, selling BS, one would look at whether t... read more
  • February 3, 2017 at 3:23 pm
    need to know says:
    Can you tell me who at Travelers told you that there is an open investigation of CompOne? That would be pretty clear evidence that this is a scam
  • January 12, 2017 at 10:21 pm
    Cathy says:
    I believed my attorney on wilshire blvd. and after 7 years of waiting i won $280,000.00 from age 60 to 71 years then a pension of 285,000.00 from age 71 to 90 years old...@ 1,... read more

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