The Bottom Line (Air Date: March 3, 2015) –Last November Utah Insurance Commissioner Todd Kiser warned Parker Conrad’s San Francisco-based company Zenefits that they would be fined and banned from operating in Utah. The problem? Zenefits offers small businesses their cloud-based software for free, hoping they’ll purchase health benefits for their employees using Zenefits. This recurring commission is how the company makes most of its money, says Conrad, the company’s Founder and CEO. And it’s partly why the company is widely considered to be among the fastest growing SAAS companies ever to come out of Silicon Valley. Amazingly, less than 3 years after its founding, Zenefits has raised more than $80 million dollars at a rumored valuation of $500 million dollars. Although this disruptive business model is why some incumbent insurance brokers- such as in Utah – are crying foul, the state’s lawmakers are currently debating a bill (HB141) that would open Utah’s doors to Zenefits.
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