The California Insurance Commissioner said in a statement that the fine was levied for circumventing education requirements for insurance agents. The fine is one of the largest penalties for licensing violations ever assessed in the department's history.
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Zenefits hit with $7 million fine by California insurance regulator
"Zenefits is an example of an internet-based startup whose former leaders created a culture where important consumer protection laws were broken — a bad strategy that placed the company at risk and that other startups should not follow," Jones said in the statement. A spokeswoman for Zenefits did not immediately respond to a request for comment. Zenefits co-founder and former Chief Executive Parker Conrad resigned in February amid revelations that employees were not meeting training and licensing requirements. Multiple states launched investigations into the company's practices.
