Startup Under Scrutiny For Flouting Insurance Laws

Under Washington law, anyone who knowingly sells, solicits, or negotiates insurance without the proper state license is guilty of a Class B felony, which can carry a prison sentence of up to 10 years, as well as a civil penalty of up to $25,000 for each violation.

They're just a middleman in the health insurance business and that may explain why they thought they could slip by without checking to make sure their brokers are properly licensed. The sad truth is that it wouldn't have been that hard to work with a business license compliance partner and wake up from this PR nightmare before it began.