STATE & URBAN 12/15/2014 @ 6:18AM
Republican Crony Capitalism On Display Out West
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Utah’s traditional insurance brokerage community is none too pleased about having to compete with Zenefits. On November 20, Utah Insurance Commissioner Todd Kiser sent a letter to Zenefits, informing the company that it is violating Utah inducement and rebating laws because it offers its software for free. Kiser said the company should be assessed $5,000 for each violation and twice the profit generated per violation. Because of this, Zenefits would currently be on the hook for at $97,000 penalty.
Kiser told Zenefits that it could come into compliance with state law by raising prices and ceasing to advertise. Zenefits does not charge businesses for their software, but they generate a profit from commission paid by the insurance providers with which they connect their clients. Zenefits understandably does not wish to go along with Kiser’s orders. It’s worth noting that Commissioner Kiser was an insurance broker for 25 years prior to being elected to the state legislature. Kiser’s dictate, at the expense of small businesses, will protect brick-and-mortar brokerages like the one he used to run. He even said, in his own words, “the ease of using Zenefits” is part of the reason why he went after them.
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“Crony capitalism is a term describing an economy in which success in business depends on close relationships between business people and government officials. It may be exhibited by favoritism in the distribution of legal permits, government grants, special tax breaks, or other forms of state interventionism.”
Crony capitalism – Wikipedia, the free encyclopediaen.wikipedia.org/wiki/Crony_capitalism
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Anyone, who thinks that EITHER political party is not corrupt, is naïve at best.
This is an example of why the USA isn’t “land of the free”.
You can’t compete if you don’t kowtow to the politicians and bureaucrats!
At least, the Mafia protects you for your money!
Robbery is robbery reguardless of if you use the guns of Gooferment or your own.
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