Zenefits’ business practices under investigation
News: 2016 Press Release
SACRAMENTO, Calif. — The California Department of Insurance opened an investigation into Zenefits' business practices and compliance with California law and regulations last year. This week Zenefits announced the resignation of its founder and CEO, Parker Conrad.
"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," said Insurance Commissioner Dave Jones. "I have directed the Department of Insurance's Enforcement Branch to deploy additional investigative resources to the Zenefits investigation. New technologies and new business models can bring value and convenience to California consumers, but businesses deploying new technologies and new business models must comply with California's strong consumer protection laws, including the laws and regulations governing the licensing and training of insurance agents and brokers, which are designed to make sure that only individuals and firms with the expertise and integrity to transact insurance are allowed to do so."
Until the investigation is completed, the Department of Insurance cannot release information about its findings and conclusions.
The California Department of Insurance, established in 1868, is the largest consumer protection agency in California. Insurers collect $310 billion in premiums annually in California. Since 2011 the California Department of Insurance received more than 1,000,000 calls from consumers and helped recover over $469 million in claims and premiums. Please visit the Department of Insurance website at www.insurance.ca.gov. Non-media inquiries should be directed to the Consumer Hotline at 800.927.4357. Telecommunications Devices for the Deaf (TDD), please dial 800.482.4833.