California Insurance Commissioner Dave Jones on Wednesday imposed a $4,345,000 penalty on American Labor Alliance and CompOne USA for selling workers' compensation and liability policies to employers of farmworkers without having a license from the Department of Insurance.
"My priority as Insurance Commissioner is to protect California consumers," said Jones. "Insurance companies not properly licensed to transact insurance in California place policyholders at risk because the insurers have not met the standards required under state law. In this case the health and well-being of the farmworkers was put at risk."
The Department of Insurance documents state that though there was a cease and desist order issued by the Department of Insurance in October of 2106 against the Agricultural Contracting Services Association and its affiliates, the American Labor Alliance and CompOne USA, and Board Chair Marcus Asay, and a penalty issued by Commissioner Jones in November of 2017 ordering them to refrain from selling insurance policies in California, the company continued to do just that without a license.
Jones is encouraging employers who have done business with Agricultural Contracting Services Association, American Labor Alliance, or CompOne USA to contact his department at 661-253-7500 for help in determining if their workers' compensation coverage is valid.