October 25, 2016

American Labor Alliance Served Cease and Desist for Alleged Illegal Insurance Sales

Employers with workers’ compensation and liability policies from American Labor Alliance or CompOne USA may not have valid insurance coverage. The California Department of Insurance issued a cease and desist order to Agricultural Contracting Services Association, Inc., doing business as American Labor Alliance and its affiliate CompOne USA, alleging that the company was soliciting, marketing, selling and issuing policies that were not properly registered with the regulator and is transacting insurance without proper authority and operating as an unregistered multiple employer welfare arrangement.

“Employers who purchased insurance from American Labor Alliance are likely at great financial risk,” said Insurance Commissioner Dave Jones in a press release from the California Department of Insurance. “Employers must protect themselves, their employees, and their business by checking with the Department of Insurance to verify the company and agent or broker’s license is valid and that the policy they purchased is also valid.”

The cease and desist order is effective immediately. Those insured through Agricultural Contracting Services Association, Inc., American Labor Alliance, or affiliate CompOne USA, should contact Western Growers Insurance Services at (800) 333 – 4942 for assistance in determining the validity of their workers’ compensation coverage.