Your People LLC, a San Francisco-based company that provides payroll and other services online for businesses, has been fined $1.2 million by New York state regulators for improperly selling insurance products.
The Department of Financial Services said that under a consent order signed Tuesday, Your People and its related corporate entity, Zenefits FTW Insurance Services, acknowledged “significant compliance failures” with New York law that restrict the sale of insurance to licenced and regulated entities.
Maria Vullo, the New York department superintendent, said that, beginning in September 2014, Zenefits allowed unlicensed brokers to sell group property, casualty, health and life insurance policies for employees of the small- and midsized companies in New York to which it provided other business services.
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New York Insurance Law Section 2102 limits the sale of commercial insurance products to agents licensed by the state. Zenefits acknowledged to the state in March 2016 that its provision of insurance products violated New York law, Vullo said.