AG Defends $4.3M Penalty, Saying ALA Knew It Was Not Authorized to Sell Comp Coverage

American Labor Alliance had to know its customers believed they were buying legal workers’ compensation coverage and that it was not licensed to sell insurance in California, the attorney general’s office argued in court filings supporting a $4.3 million penalty handed down last year. The Department of Insurance in December fined American Labor Alliance $5,000 for each of the 869 days between Dec. 10, 2015, and April 26, 2018, that the company and an affiliate allegedly sold workers’ compensation coverage without having a license to transact insurance business in the sta...