Chairman of Nonprofit Says Federal Exemption Allows Comp Sales

The owner of a California nonprofit that was ordered to stop selling workers' compensation policies in the state insisted on Friday that state regulators do not understand an exemption in federal law for organizations that implement collectively bargained employee benefit plans. The California Insurance Department's cease-and-desist order against Agricultural Contracting Services Association Inc., doing business as American Labor Alliance, accuses the Clovis-based organization of failing to register with the state as a municipal employer welfare arrangement, or MEWA. But American...