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Reading Between the Lines of Utah’s Zenefits Exception Law

Apr 17, 2015

​The Council
April 14, 2015

Zenefits’ ability to conduct business in Utah has captured headlines for a year now. After back-and-forth petitioning, lawmakers in Utah yesterday reversed its ban on the company’s business model. Below is our examination of these recent developments. In the meantime, visit for a detailed description of the Zenefits platform and licensing information.

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Yesterday, the Governor of Utah signed into law what is being touted as a special Zenefits exception to the prevailing Utah insurance anti-rebating regime. Specifically, the bill – Utah H.B. 141 – amends Utah’s rules to allow an insurance agent, broker or consultant to provide goods or services free of charge or for less than fair market value provided that four things are true:

  1. The goods or services are available on the same terms to anyone;
  2. Receipt of the goods/services is not contingent on the sale, renewal, termination or price quotation of or for an insurance contract;
  3. There is no subsequent retroactive charge based on the occurrence or non-occurrence of an event subsequent to receipt of the goods or services; and
  4. The goods/services recipient receives an oral or written disclosure before an insurance solicitation is made indicating that receipt of the free/discounted goods/services is not contingent on the purchase, continuation, or termination of an insurance product or receiving a quote for an insurance product.

This expands the statutory list of insurance-related services that may be provided without running afoul of the Utah anti-rebating rules to free/discounted goods and services that are offered to the public. Any agent or broker doing business in Utah can take advantage of this if they so choose.

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