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| | California Department of Insurance Issues Cease And Desist Order Against American Labor Alliance And Affiliate CompOne USA
By Lonce LaMon with the California Department of Insurance - October 20, 2016
The California Department of Insurance today put out a news release stating that California Insurance Commissioner, Dave Jones, had a cease and desist order served upon Agricultural Contracting Services Association, Incorporated, dba American Labor Alliance and its affiliate CompOne USA. In this order, which was served on Monday, October 17th 2016, the Commissioner alleges these businesses are soliciting, marketing, selling, and issuing to employers in California what they claim are valid workers’ compensation policies, when in fact investigators found the companies are not properly registered with the regulator and are transacting insurance without proper authority.
American Labor Alliance attracted customers by marketing low workers’ compensation premium rates. But the California Department of Insurance is stating employers are holding worthless pieces of paper, as the policies are not valid. This means the employers have no coverage which leaves them at great risk.
The order is effective immediately and employers who are transacting business with Agricultural Contracting Services Association, Inc., American Labor Alliance, or affiliate CompOne USA should contact the Department of Insurance Investigations Division at 661 253-7500.
American Labor Alliance has requested an administrative hearing before an administrative law judge. The hearing has not yet been scheduled.
If American Labor Alliance continues marketing and selling the alleged illegal products in defiance of the department’s cease and desist order they face fines of up to $5,000 per day for each day they do not comply.
lonce@adjustercom.com, Lonce LaMon, journalist, and the California Department of Insurance news release dated October 20, 2016.
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