TDCI Levies $62,500 Fine Against Zenefits

Monday, July 25, 2016 | 01:45pm

NASHVILLE – The Tennessee Department of Commerce and Insurance (TDCI) announces a Consent Order against YourPeople, Inc., (DBA Zenefits FTW Insurance Services) whereby the California-based company is ordered to pay a civil monetary penalty of $62,500.

The penalty and Order represent the conclusion of a monthslong discussion and review of the company’s reported business practices and admitted unlicensed activity in Tennessee by Zenefits employees.

 “Under the company’s past leadership, compliance with insurance laws and regulations was almost an afterthought,” said TDCI Commissioner Julie Mix McPeak. “Tennessee requires individuals who sell, solicit, or negotiate insurance to be licensed. Under the old Zenefits model, they were not complying with state laws.”

 “Fortunately, new company leadership has demonstrated a dedication to righting the ship.  They have instituted new and enhanced agent training requirements as well as licensing controls to ensure that company employees comply with state licensing laws. They employed a reputable outside firm to help test and confirm these new procedures.”

Among such remediation efforts is a new company mandate that all insurance producers complete 52 hours of continuing education courses, including 12 hours of ethics training.  Technical controls will also confirm the license status of a producer before he/she begins selling insurance to a potential Tennessee client.

“Zenefits self-reported its violations and cooperated throughout the Department’s investigation,” said TDCI Assistant Commissioner Michael Humphreys. “The State of Tennessee takes unlicensed activity very seriously, and TDCI will continue to do everything in our power to protect consumers.”

###