There is a lot going on that you, as a consumer, have to deal with when it comes to insurance. From something as simple as needing to find affordable coverage for your car, or something as troublesome as deciding which carrier best suits your business for your employees.
Very recently, a company called Zenefits has been called into question for their insurance practices. As background, Zenefits is a cloud-based company that provides benefit enrollment and payroll assistance for their clients for free in exchange for companies appointing them as their agent of record for their group health insurance plan.
The issue is that this company has been practicing without the use of a proper insurance license, actually bypassing the system to not have qualifying licensing hours for their agents.
Insurance agents are required to go through a certain amount of training to get their licensing. In California, where Zenefits is located, that number of hours is 52.
According to the San Francisco Business Times, this program, Macro, may have allowed employees to complete mandatory online pre-licensing classes to obtain a California Insurance brokers license in less than the legally required time.
In short, Zenefits is under investigation by multiple states. As many as 83 percent of the insurance policies that were sold and serviced by Zenefits brokers in Washington State through last August “were peddled by employees without necessary state licenses,” according to Buzzfeed who acquired the data through a public records request.
If this information is true, Buzzfeed reports that an individual who sells, solicits or negotiates the sale of insurance without a proper license can be punished by up to 10 years in prison, plus a civil penalty of up to $25,000 per violation.
A company like Zenefits could potentially be facing the same issue in all 50 states.
So let me talk about the positives. You don’t have to worry about any of this because there are plenty of qualified, licensed brokers in NC. Our agency and all of our licensed agents are in good standing with the NC Department of Insurance (NCDOI) and regularly complete all the required continuing education.
What’s more is that using a local experienced broker means more convenience for the consumer. We are able to answer your questions, help you work through any issues, and make certain that you have the coverage that you need and that fits within your budget.
We are not tied to any particular carrier. We represent all the carriers in the market and maintain preferred standing with all of them. The best part is, our guidance doesn’t cost you a dime!
Independent insurance agents and brokers are paid by their carriers, not by you, so you don’t have to worry about paying a fee for our help. We want to help you, and we want you to be happy.
Why? If you’re happy, you will tell your colleagues and friends and a good review from you is the most important thing that we could ask for.
If you have any questions regarding your current policy through our agency or want to get insurance coverage, please do not hesitate to contact us via email or by using the form below!
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