For Immediate Release: May 23, 2017

Causey Touts $104,500 Penalty Recovery from Zenefits Insurance

RALEIGH -- Insurance Commissioner Mike Causey today announced that the North Carolina Department of Insurance has reached a settlement agreement with YourPeople, Inc., dba Zenefits FTW Insurance Services (Zenefits) resulting in a $104,500 penalty.

Department of Insurance Agent Services Division had charged Zenefits with engaging in unauthorized insurance activity in North Carolina resulting in 46 unlicensed and/or un-appointed insurance producers participating in the issuance of 186 policies to North Carolina consumers from January 2014, through November 2015.

"All insurance companies, whether North Carolina based or from other states, must comply with North Carolina law," said Causey. "I am glad Zenefits accepted responsibility for their actions."

Zenefits is a California-based business entity that has an active North Carolina non-resident insurance business entity license and was the subject of a multi-state inquiry into unlicensed and unauthorized insurance activity. Zenefits self-reported potential violations to the Department of Insurance in November 2015, followed by an investigation by PriceWaterhouse Coopers.

The proceeds of all civil penalties, civil forfeitures and civil fines that are collected by the North Carolina Department of Insurance are placed in the Civil Penalty and Forfeiture Fund used exclusively for maintaining free public schools per ยง 115C-457.2. More information available at http://www.ncleg.net/EnactedLegislation/Statutes/PDF/ByArticle/Chapter_115C/Article_31A.pdf

Zenefits has provided the Department with detailed information regarding personnel and system changes to address statutory violations and has taken a number of actions that address remediation and correction of the licensing issues that led to these violations. Zenefits has also agreed to ensure future compliance to North Carolina laws and regulations applicable to licensed insurance business entities.

The NCDOI Agent Services Division regulates all licensed agents, brokers, limited representatives, appraisers, adjusters, premium finance companies, collection agencies, motor clubs, bail bondsmen, surety bondsmen and bail bond runners authorized to do business in North Carolina. Oversight includes licensure qualification, pre-licensing education, continuing education, telephone inquiries, complaint investigations and agency examinations. Information is also available at www.ncdoi.com.

--NCDOI--