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Software company Zenefits has been fined $7 million by California's insurance regulator, marking the biggest penalty yet for the startup that has faced multiple investigations for flouting insurance laws. California Insurance Commissioner Dave Jones said in a statement posted on the state insurance department's website that Zenefits was charged with allowing unlicensed employees to sell insurance and circumventing education requirements for insurance agents. (Somerville, 11/28)

The settlement is the largest thus far for Zenefits, which has faced investigations from multiple states for improper sales practices by some of its staff. The San Francisco company has already settled investigations with other states, including Tennessee, Arizona and Minnesota, paying much smaller fines in the tens of thousands of dollars. (Winkler, 11/28)

California’s insurance regulator said Zenefits has agreed to pay as much as $7 million over licensing violations. The human resources startup will pay $3.5 million upfront and will be on the hook for the rest if additional violations are found or if it fails a follow-up compliance test in 2018, the insurance department said. The fine is the largest single penalty assessed against Zenefits, the regulator said. Fines from other states this year totaled about $1 million, Zenefits said. The company said it’s resolved issues in 17 states. (Newcomer, 11/28)