Skip to content

Carrier Management

Critical Information for P/C Carrier Executives

Highlights

  • Culture Tips: Transforming a 150-Year-Old Mutual
  • Exclude It, Harness It, Get Greedy: Insurers' AI Playbook
  • Ranking Industry AI Talent, Maturity Leaders
  • 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
FEMA’s New Flood Maps Means More Homes Require Flood Insurance: Cotality
The Technology Taking Parametric Insurance Mainstream
  • U.S.
  • International
  • Industry News
  • Government
  • Technology & Science
Starbucks Settles Florida Lawsuit Claiming Diversity Policies Were Illegal
Driver Arrested in Bus Collision That Occurred Before Deadly LA News Copter Crash

See all News

  • Executive Spotlight
  • Innovation
  • Strategy
  • Leadership
  • Performance
  • Growth Initiatives
  • Social Responsibility
Why Automation-First AI Falls Short in Specialty Lines
AI Data Center Boom Creates New Risks, Opportunities for Insurers
  • Reinsurance
  • Emerging Markets
  • Global Economy
  • Personal Lines
  • Commercial Lines
  • Specialty
WTW, Ivans Reports Signal More Commercial Rate Moderation
The Big Data/AI ‘Revolution’ Is Driving Up Verdicts, Settlements as Plaintiffs Buy In
  • Insurance Regulation
  • Securities Regulation
  • Accounting & Tax
  • Rating Agencies
Pritzker Signs Bills Giving Insurance Department Power to Overturn Rate Changes
Can Reinsurers Maintain Underwriting Discipline or Will ‘Irrational’ Competition Return?
The $400,000 Chief of Staff Is the CEO’s Secret Weapon in the AI Age
Exiting California’s FAIR Plan
What I Wish I Knew While Leading Insurance Carriers
Nearly 100% Chance of a Mediterranean Tsunami Within Next 30 Years

See all Top 50

In Bots We Trust? For Insurance?
Viewpoint: What U.S. Insurers Should Learn From the EU AI Act
Help Me Understand: How Insurers Build Trust
How Leading Voices Can Help Claims Organizations Leap Ahead

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.

Atlantic Hurricane Season Sets Record for Longest Without One
FDA Declares Cyclospora Outbreak Over
AI Data Center Boom Creates New Risks, Opportunities for Insurers
Satellites Show Earth Lost More Than 12T Tons of Ice in 47 Years

Related Articles

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

Latest Magazine

Carrier Management magazine
View All

Research & Whitepapers

Free Newsletter

NewsletterSign up to receive daily news!

Research & Whitepapers

Latest

  • FEMA’s New Flood Maps Means More Homes Require Flood Insurance: Cotality
  • Starbucks Settles Florida Lawsuit Claiming Diversity Policies Were Illegal
  • Driver Arrested in Bus Collision That Occurred Before Deadly LA News Copter Crash
  • AIG’s Hancock to Retire as Head of General Insurance
  • Senate Committee Sends TRIA Reauthorization to the Floor
  • Emerging Risks to Watch: Quantum Computing, Data Center Buildout, and Peptides
  • FDA Declares Cyclospora Outbreak Over
  • UK Insurers Urge Bank of England to Rethink ‘Dynamic’ Stress Test
  • C-Suite
  • News
  • Leadership
  • Markets
  • Regulation
  • Top 50
  • Members Only
  • Videos

Headlines

  • Culture Tips: Transforming a 150-Year-Old Mutual
  • Exclude It, Harness It, Get Greedy: Insurers' AI Playbook
  • Ranking Industry AI Talent, Maturity Leaders

Resources

  • Videos / Podcasts
  • Contributors

Popular Topics

  • Boardroom Agenda
  • Technology
  • Financial
  • News

Brand Spotlight

  • Cotality
  • Cytora
  • 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