Updated with Zenefits comment at end.

Officials at the California Department of Insurance say they areinvestigating Zenefits to see whether the company iscomplying with California laws and regulations.

The department opened the Zenefits investigation last year,officials said in a news release.

Dave Jones, the California insurance commissioner, said he hasasked the department's enforcement branch to "deploy additionalinvestigative resources to the Zenefits investigation."

Zenefits, a human resources and benefits automationcompany, announced earlier this week that David Sacks,a former PayPal executive, had taken over from Parker Conrad, acompany co-founder, as chief executive officer

Many news organizations quoted from an internal email, said tobe written by Sacks, in which Sacks allegedly told employees, "Thefact is that many of our internal processes, controls, and actionsaround compliance have been inadequate, and some decisions havejust been plain wrong."

The department cannot release information about its Zenefitsinvestigation findings and conclusions until the investigation iscompleted, officials said.

In a statement about the investigation, Jones said newtechnologies and new business models can bring value andconvenience to California consumers.

"But businesses deploying new technologies and new businessmodels must comply with California's strong consumer protectionlaws, including the laws and regulations governing the licensingand training of insurance agents and brokers, which are designed tomake sure that only individuals and firms with the expertise andintegrity to transact insurance are allowed to do so," Jones saidin the statement.

Kenneth Baer, a Zenefits representative, said the company toldthe department about the matter that led to the investigation.

"We are communicating and cooperating fully with regulators withregards to this issue that we discovered and self-reported tothem," Baer said in a statement.