Sacramento, CA – California Insurance Commissioner Dave Jones recently issued a Decision and Order imposing a $4,345,000 penalty on American Labor Alliance and CompOne USA for selling workers’ compensation and liability policies to employers of farmworkers without being properly licensed with the Department of Insurance.
“My priority as Insurance Commissioner is to protect California consumers,” said Insurance Commissioner Dave 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 wellbeing of the farmworkers was put at risk by the unlicensed insurers who sold workers’ compensation insurance illegally to the employers of farmworkers.”
Despite a Cease and Desist Order issued by the Department of Insurance in October 2016 against the Agricultural Contracting Services Association, Incorporated and its affiliates, the American Labor Alliance and CompOne USA, and Board Chair Marcus Asay, and a Decision and Order issued by Commissioner Jones in November 2017 ordering them to refrain from selling insurance policies in California, the company continued to transact insurance without a license. Today’s Decision and Order imposes the $4.3 million penalty that represents $5,000 for each of the 869 days that the companies sold workers’ compensation insurance without a license.
Employers transacting business with Agricultural Contracting Services Association, Inc., American Labor Alliance, or affiliate CompOne USA, should contact the Department of Insurance Investigation Division at 661-253-7500 for assistance in determining the validity of their workers’ compensation coverage.