Zenefits under investigation by California insurance regulators

insurance companies investigation

The software company has now had its business practices called into question and officials will be examining them.

Zenefits, a software company, is now facing an investigation by California insurance department officials, as the firm’s business practices have been called into question.

The California Department of Insurance released a statement with regards to the investigation that launched last year.

While the California insurance officials have only just recently announced that they are looking into Zenefits and the way it conducts its business, it also stated that its efforts started back in 2015. At that time, the investigation was launched in order to better understand exactly what the situation entailed. Insurance Commissioner Dave Jones released the statement about the agency’s efforts to determine whether or not Zenefits had been in compliance with regulations that require insurance agents and brokers to undergo training and licensing.

It was under the California Insurance Commissioner’s direction that the investigation was set into motion.

insurance companies investigationThis was revealed on the heels of an announcement by Parker Conrad, the now former CEO of Zenefits, who announced his resignation. Conrad has since been replaced during a time in which the company has been accused of having failed to obtain the necessary licenses for its salespeople, in order to ensure that its customers were being properly served.

The company is a provider of software for businesses in order to make it possible to be able to automate certain HR tasks. Among them is the health insurance coverage provided to employees.

In his announcement, Commissioner Jones stated that “The recent resignation of Zenefits’ CEO Parker Conrad is an important development, but it does not resolve our ongoing investigation of Zenefits’ business practices and their compliance with California law and regulations.”

The California insurance department also explained that it would not be releasing any information about the findings of the investigation until the examination of the business practices at Zenefits has been completed. The company is not entirely new to being investigated, as another one has also been launched in Washington state, where it has allegedly been selling health insurance to customers, through unlicensed brokers.

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