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Software startup Zenefits must pay the state of Tennessee $62,500 for violating insurance requirements, state officials said on Monday, marking the first settlement with regulators as the scandal-hit company seeks to redeem itself after revelations it had flouted the law. "Under the company's past leadership, compliance with insurance laws and regulations was almost an afterthought," Julie Mix McPeak, commissioner of the Tennessee Department of Commerce and Insurance, said in a statement. "Under the old Zenefits model, they were not complying with state laws. Fortunately, new company leadership has demonstrated a dedication to righting the ship." (Somerville, 7/25)

Zenefits faces several continuing investigations from other states, including Washington, California and Massachusetts, after the company failed to get the necessary licenses for its sales staff to broker health-insurance benefits, the primary way the startup makes money. Zenefits reported its licensing issues to all 50 states earlier this year and said it has stopped the unlicensed practices. The company won’t be restricted from doing business in Tennessee, said Zenefits’s chief executive, David Sacks, in an email to employees that was released by the company. (Winkler, 7/25)

Zenefits reached its first settlement with a state government over its use of unlicensed health insurance brokers, an issue that prompted investigations in at least three other states and led its founding chief executive officer to resign this year. As part of the settlement, Zenefits said it will pay the Tennessee Department of Commerce and Insurance $62,500 in fines. The company will continue to sell insurance in the state. (Huet, 7/25)

Tennessee is the first state to impose a fine against one-time Silicon Valley darling Zenefits for not complying with state laws around selling insurance. The $62,500 civil penalty from the Tennessee Department of Commerce and Insurance wraps up a months-long evaluation that started when Zenefits self-reported to states across the country in November that it breached laws including allowing unlicensed brokers to sell health insurance. (Fletcher, 7/25)