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.
Led by Insurance Commissioner Ricardo Lara, the California Department of Insurance is the consumer protection agency for the nation's largest insurance marketplace and safeguards all of the state’s consumers by fairly regulating the insurance industry. Under the Commissioner’s direction, the Department uses its authority to protect Californians from insurance rates that are excessive, inadequate, or unfairly discriminatory, oversee insurer solvency to pay claims, set standards for agents and broker licensing, perform market conduct reviews of insurance companies, resolve consumer complaints, and investigate and prosecute insurance fraud. Consumers are urged to call 1-800-927-4357 with any questions or contact us at www.insurance.ca.gov via webform or online chat. Non-media inquiries should be directed to the Consumer Hotline at 800-927-4357. Teletypewriter (TTY), please dial 800-482-4833.
