Structured Settlement Buyers Need Regulation | Licensed vs Unlicensed Sales of Insurance Case Study

by Structured Settlement Watchdog®

In Washington state, a company called Zenefits is currently under regulatory scrutiny. It was found that  83% of the insurance policies sold or serviced by the company through August 2015 were peddled by employees without necessary state licenses, according to data obtained through a public records request. The apparent pattern of unlicensed insurance sales could strain Zenefits’ relationships with major insurance carriers, which demand that only properly licensed brokers sell their policies  [  Source:  Buzz Feed News February 5, 2016]

Data from the Washington regulator now shows the extent to which Zenefits apparently ran afoul of the state law. The data, contained in a spreadsheet that Zenefits sent to Washington regulators, includes a list of the insurance policies sold or serviced in the state, the names of the Zenefits employees who did those deals, the dates on which they did them, and the insurance companies standing behind the policies.

The Washington investigation of Zenefits, which started in early 2015, is ongoing, a spokesperson for the state insurance commissioner said.

Washington law is particularly severe when it comes to the unlicensed sale of insurance. Under current insurance law law, anyone who knowingly sells, solicits, or negotiates insurance without the proper state license can be punished with a prison sentence of up to 10 years, as well as a civil penalty of up to $25,000 for each violation

How many more mouths would the tax payers of the State of Washington need to feed if some of the the unlicensed workers that work for structured settlement payment purchasers and brokers soliciting Washington residents were required to be licensed and were incarcerated because they solicited Washington citizens when they weren't?     As it stands today there is no such regulation in place and felons can solicit citizens of the state of Washington

Just think,  instead of the figurative "its your money I want it now" they could be singing in the Jailhouse Now by Johnny Cash Now or the Soggy Bottom Boys  or the hip hop County Jail by Alufrumtha I, or Back on the Chain Gang by The Pretenders, or the Structured Settlement Watchdog favorite  Never Leave Me Alone, by who else but  Nate Dogg and Snoop Dogg