Zenefits has paid its first settlement with a state regulator, the Tennessee Department of Commerce and Insurance. According to state officials, the startup must pay $62,500 for violating insurance laws. Zenefits still faces ongoing investigations and potential settlements in Washington, Massachusetts and California.
Additional states also have asked Zenefits to turn over more information; it is unclear whether they will fine the company or impose more severe penalties. Sacks said Zenefits now mandates brokers complete 52 hours of continuing education courses from the National Association of Health Underwriters, including 12 hours of ethics training. Zenefits was once deemed by investors to be the fastest growing software startup in Silicon Valley history. The company last month slashed its valuation from $4.5 billion to $2 billion in a deal that sought to appease investors by increasing their combined stake from 11% to 25%.