Skip to content

Carrier Management

Critical Information for P/C Carrier Executives

Highlights

  • Does Spending More $ on Defense Reduce Indemnity?
  • P/C Industry Loss Reserves Redundant by More Than $20B: ...
  • How Modern is Modern Enough?
  • Carrier Management
  • C-Suite
  • News
  • Research
  • Leadership
  • Markets
  • Regulation
  • Top 50
  • Members Only
  • Join
  • Login
  • Boardroom Agenda
  • CEO / Chief Executive
  • CFO / Financial
  • Underwriting
  • CTO / Technology
  • Risk
  • Brand Management & Sales
  • Investment Officers
  • Claims / Legal
  • Talent Management
Independent Agents Can Get Appointed to Sell Root Auto Insurance in One Day
Speeding Drivers On Cell Phones More: IIHS Study
  • U.S.
  • International
  • Industry News
  • Government
  • Technology & Science
Chinese Air Bag Components Tied to 10 Crash Deaths Banned in the U.S.
Investigator Says Camp Mystic’s Teen Counselors Had No Emergency Training Before Flood

See all News

  • Executive Spotlight
  • Innovation
  • Strategy
  • Leadership
  • Performance
  • Growth Initiatives
  • Social Responsibility
Executive View: AI Strategy in Insurance Requires Plug-and-Play Operating Model
Marsh Aims to Be ‘AI Winner’ by Focusing on Gains in Growth, Productivity, Efficiency
  • Reinsurance
  • Emerging Markets
  • Global Economy
  • Personal Lines
  • Commercial Lines
  • Specialty
Balancing Authenticity and Compliance in Creator-Led Insurance Marketing
Rational Market? How About ‘Dumb’ and ‘Bizarre’?
  • Insurance Regulation
  • Securities Regulation
  • Accounting & Tax
  • Rating Agencies
Three Sentenced in Bear-Suit Attacks Insurance Fraud Case
NAIC Issues Nationwide Data Call to Homeowners Insurers
Is Commercial Auto Having Its ‘Sprinkler Moment’?
Hacked Hospitals, Hidden Spyware: Iran Conflict Shows Digital Fight in Warfare
Four Moves That Will Keep Midsize Mutuals Competitive
State Farm Paid a ‘Hail’ of a Lot of Claims in 2025

See all Top 50

How Insurers Are Using AI to Manage Rising Catastrophic and Accumulation Risk
AI for the Defense: Should Insurers or Law Firms Pay?
Executive Viewpoint: Why Insurers Are Struggling to Keep Pace With Risk
How Insurance Leaders Can Leverage AI Without Sacrificing Trust

See all Members Only Content

Benefits

  • News for the P/C Insurance C-Suite - Focused reporting from reliable sources and experienced financial journalists.
  • Research and Analysis Not Found Elsewhere - Exclusive content from researchers think tanks, industry experts and respected analysts.
  • High-Profile Peers - Interviews with thought leaders in the global and U.S. insurance industry.

Online Access

Complete, unrestricted access to the popular CarrierManagement.com website, which provides insurance company C-suite executives with daily news, white papers, advice, instruction and editorial on how to manage insurance companies more efficiently and more effectively.

Prudential May Seek Cover From Wells Fargo for Account Scandal Costs

Print Email
February 23, 2017 by Suzanne Barlyn

Prudential Financial Inc, the target of probes and lawsuits related to whether Wells Fargo & Co retail bankers improperly sold its insurance, may press the bank to cover costs it has run up because of the flap, according to a filing.

“The company has provided notice to Wells Fargo that it may seek indemnification under the MyTerm distribution agreement,” Prudential said in a Feb. 17 regulatory filing.

It was unclear how much in costs Prudential may seek.

A push by the Newark, New Jersey-based insurer for Wells to cover its costs could become another headache for the San Francisco-based bank, whose sales practices have been under a spotlight.

Last year, federal regulators ordered Wells Fargo to pay $190 million in fines and restitution because they said its high pressure sales environment pushed employees to open as many as 2 million deposit and credit card accounts without customers’ permission.

A Wells spokesman declined to comment on the filing.

In December, Prudential suspended the distribution of MyTerm, a low-cost life insurance policy it sold through Wells, pending a review of how the product was sold by the bank.

Prudential’s move followed a wrongful termination lawsuit filed in New Jersey by three former managers in its corporate investigation division who said Wells employees signed up bank customers for the Prudential policies without the customers’ knowledge or permission.

Since bankers are not licensed to sell insurance, Wells Fargo employees were meant to direct customers to either self-service kiosks in branches or online to buy the insurance, without getting into specifics about the products.

In some cases, policies were opened and closed after a month or two and then reopened, and sometimes monthly fees were withdrawn from the accounts, according to evidence in the lawsuit.

Insurance regulators in California and New Jersey are investigating the allegations.

Prudential was also hit with a class action lawsuit on behalf of Wells Fargo customers who said they were unknowingly signed up for Prudential policies. The lead plaintiff withdrew the lawsuit on February 17.

Prudential has received “inquiries, requests for information a subpoena and a civil investigative demand related to this matter from state and federal regulators,” the insurer said in the Feb 21 filing. Prudential also received a demand from shareholders to inspect its books and records, it said.

Copyright 2026 Reuters. Click for restrictions.
Print Email
Claims / LegalCommercial LinesLitigation/Liability TrendsMarketsNewsThe C-SuiteU.S.

Was this article valuable?

Thank you! Please tell us what we can do to improve this article.

Thank you! % of people found this article valuable. Please tell us what you liked about it.

Here are more articles you may enjoy.

‘Alarming’ High Flood Risk for 17M Along Atlantic, Gulf Coasts: Study
State Farm Paid a ‘Hail’ of a Lot of Claims in 2025
Executive Viewpoint: How AI Is Changing the Role of the Insurance Broker
Meta to Capture Employee Mouse Moves, Keystrokes to Train AI: Reuters

Related Articles

Wells Fargo Believes Customers Properly Reimbursed in Fake Account Scandal
Prudential Reportedly Plotting Escape From ‘Too Big to Fail’ Label
Wells Fargo Board Blames Ex-CEO, Other Exec for Much of Fake Account Scandal
Proposed Capital Rules Would Reflect AIG, Prudential’s Insurance Identities
AIG, Prudential Won’t Need Bank Capital Rules: Fed Reserve Governor
Wells Fargo Investors Urged to Unload Most Board Members Over Fake Account Scandal
Wells Fargo Phony Account Scandal May Be Bigger Than Previously Thought
Wells Fargo Will Pay $50M to Settle Suit Over Homeowners Fees
Wells Fargo Will Settle Lawsuit Over Account Abuses With $110M Payment
Prudential Will Pay $2.35B for Online Insurance Startup Assurance IQ
Wells Fargo Settles Racial Bias Broker Lawsuit

Latest Magazine

Carrier Management magazine
View All

Research & Whitepapers

Free Newsletter

NewsletterSign up to receive daily news!

Features

  • Balancing Authenticity and Compliance in Creator-Led Insurance Marketing
  • Executive View: AI Strategy in Insurance Requires Plug-and-Play Operating Model
  • Insurance’s Data Problem Comes Into Focus at Hormuz
  • 2026 Viral Work Trends
  • How Insurers Are Using AI to Manage Rising Catastrophic and Accumulation Risk
  • Legal Analysis: Insurer Subrogation Rights Under Scrutiny

Latest Magazine

Carrier Management magazine
View All
  • C-Suite
  • News
  • Leadership
  • Markets
  • Regulation
  • Top 50
  • Members Only
  • Videos

Headlines

  • Does Spending More $ on Defense Reduce Indemnity?
  • P/C Industry Loss Reserves Redundant by More Than $20B: ...
  • How Modern is Modern Enough?
  • Liberty Mutual Done with Fixing, On to Building

Resources

  • Videos / Podcasts
  • Contributors

Popular Topics

  • Boardroom Agenda
  • Technology
  • Financial
  • News

Brand Spotlight

  • Cotality
  • Cytora
  • HazardHub
  • Indico Data
  • Majesco
  • Verisk
  • Vertafore

Connect with us

  • Email Newsletters
  • Twitter
  • Facebook
  • LinkedIn
  • Do Not Sell My Info

Carrier Management

  • Submit Content
  • Advertise
  • Subscribe
  • Contact Us

Wells Media Group Network

  • Carrier Management iconCarrier Management
  • Insurance Journal iconInsurance Journal
  • Claims Journal iconClaims Journal
  • IJ Academy iconInsurance Journal Academy
  • Insurance Journal TV iconInsurance Journal TV
  • MyNewMarkets.com iconMyNewMarkets.com
© 2026 by Wells Media Group, Inc. Privacy Policy | Terms & Conditions | Site Map