Soon, Zenefits ran into snags. The Utah Insurance Department banned it from operating in the state because the agency considered the free HR software to be in violation of a law against offering rebates to customers. Zenefits was also finding that some insurance companies weren’t technologically advanced enough to integrate with its system. “Most of these insurance transactions are still done on paper or with e-mailed PDFs,” says Sabrina Corlette, a research professor at Georgetown University’s Health Policy Institute. This increased the odds of errors—and Zenefits’ employees were often moving too fast to catch mistakes.

http://www.bloomberg.com/features/2016-zenefits/