New Broker Licensing Controls at Zenefits

February 19, 2016
By

Category: Zenefits

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Blog posts about new products are common, but today we are announcing a product that customers will never see. Nevertheless, it is one of the most important products that we’ve ever released.

Last month, Zenefits implemented sophisticated new controls in Salesforce.com, our CRM system, to ensure that every one of our sales representatives is licensed to sell insurance in the state where that current or prospective client resides. This is an important step to changing how Zenefits operates and living up to our new core value of operating with integrity. This, in turn, enables us to better deliver for the thousands of entrepreneurs and small businesses who rely on Zenefits to manage and grow their businesses.

Here’s how the technology works:

  1. Before any potential customer can be assigned to a sales rep, the system checks to make sure that the sales rep is licensed in that customer’s state. If that is not the case, the system will produce an error message and prevent the assignment from taking place.  [see screenshot 1]
  2. Every sales rep must enter all of their licensing information into the system. They must also upload a PDF of their license certificate. [see screenshot 2]
  3. Our compliance team (which lives outside of our sales organization and reports to our Chief Compliance Officer) then checks the sales rep’s license information against the Department of Insurance (DOI) website for that state. The compliance team member verifies that the employee is appropriately listed on the DOI website. [screenshot 3]
  4. The compliance team member then takes a screenshot of the employee listing from the DOI website and uploads it into Salesforce.com. This is like a “dual entry” accounting system. [see screenshot 4]
  5. Only when both pieces of information have been entered into the system — the sales rep’s certificate and the compliance team’s verification — will the sales rep be approved by the system to conduct sales conversations in that state.

This new system of checks and balances applies to both existing and future sales opportunities. This means that our compliance team has reviewed all existing opportunities in Salesforce.com to ensure that the sales rep working that opportunity is licensed to transact business in that state.

We have very similar controls in place for our Benefit Advisors as well, ensuring that they only service clients for whom they are properly licensed.

We know that no technology is foolproof, and that is why we will conduct regular reviews of the technology to ensure that it is working as expected — just like we conduct regular tests of our security.

As we’ve acknowledged, Zenefits has had issues with licensing compliance in the past, but as of today, we believe that this sophisticated new technology provides some of the best-in-class controls in the industry and corrects our broker licensing issues. This technology helps us live up to the high standards of integrity that we have now set for ourselves, that our regulators rightly expect, and that our customers deserve.  

Screenshot 1

Screenshot1

An error message prevents any opportunity from being assigned to a sales rep who is not licensed to do business in the customer’s state.

Screenshot 2

Screenshot2

Each sales rep must submit their license information, including a PDF version of their state license, to be validated by our compliance team before they are able to sell.

Screenshot 3

Screenshot3

On the DOI website of the relevant state, the compliance team members verifies that the employee is properly licensed. 

Screenshot 4

Screenshot4

A record of both the 1) license uploaded by the Zenefits employee and 2) verification completed by the compliance team member are stored in Salesforce.com.

About

After working in the field of psychology research for years, Bella loves sharing what she's learned in a more directly impactful context. She's interested in the intersection of people and business, and wants to promote conversations about HR. She's an amateur ceramicist, pro dog walker, and produces podcasts on the side.

Category: Benefits, Featured


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