After a rocky relationship with regulators, software startup Zenefits has announced that it is changing its business model to provide software to insurance brokers.

Insurance Broker reports that the company, which had been hit with regulatory penalties for problems ranging from unlicensed employees selling insurance to overoptimistic revenue projections, will no longer act as an insurance broker, but instead will furnish software to brokerages that sell insurance benefits to companies — for a cut of the revenue.

According to the report, Zenefits, founded in 2013 and based in San Francisco, originally provided free software for businesses to automate their human resources services such as hiring and payroll. Back then it made its money by acting as a broker and selling companies health insurance plans.

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