Parker Conrad has surrendered his insurance license for his alleged role in licensing compliance violations that occurred at Zenefits during his tenure as CEO, California Insurance Commissioner Dave Jones announced on Wednesday.
It was the conclusion of an enforcement action against Conrad. Following the filing of an official accusation, Conrad entered into a settlement with the California Department of Insurance resulting in the surrender of his license.
“As Zenefits’ CEO, the buck stopped with Parker Conrad,” Jones said in a statement. “Unlicensed insurance transactions occurred under Conrad’s management and employees were provided with a computer program that enabled them to skirt the pre-licensing education requirements. Conrad was ultimately responsible.”
In late 2015, the CDI learned of alleged violations regarding the transaction of insurance by unlicensed Zenefits’ employees as well as the creation of a software macro that enabled employees to circumvent the pre-licensing study requirements.
Following an investigation, the department concluded an enforcement action against Zenefits in November 2016. Zenefits agreed to pay a fine of $7 million, with half of the fine suspended if Zenefits had no future insurance code violations. This is one of the largest fines imposed for licensing violations in the history of the department.
Conrad was a co-founder of Zenefits and acted as the company’s CEO from its inception in 2012, until his resignation in February 2016. He also held a seat on the company’s board of directors and had an ownership interest in the company during the time the alleged violations occurred.
In addition to surrendering his license, Conrad agreed to pay $66,000 in reimbursement costs to the department and to not transact insurance, either directly in his name or indirectly by managing or directing the transaction of insurance through any other licensee, without first applying for and obtaining an insurance license.
Related:
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- Insurtech Zenefits, Co-Founder to Pay $1M for Misleading Investors
- Zenefits Rises Quickly to Join Billion-Dollar Start-Up Club
Topics California
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