Skip to content

Carrier Management

Critical Information for P/C Carrier Executives

Highlights

  • Keeping Humanity Alive in Tech-Forward Insurance Teams
  • Turbocharging E&S: AIG's AI Push
  • Data Insight: Who's Growing in Personal Lines?
  • 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 Chief Says Agency Will Raise State Burden for Disasters to 50%
Workers Express Lower Tolerance for Toxic Environments
  • U.S.
  • International
  • Industry News
  • Government
  • Technology & Science
Insurance Pacesetters Creating New Skills, Career Pathways to Remain Relevant: Report
Report: California Workers Comp Combined Ratio Highest in 14 Years

See all News

  • Executive Spotlight
  • Innovation
  • Strategy
  • Leadership
  • Performance
  • Growth Initiatives
  • Social Responsibility
Former XL CEO McGavick Returns to Insurance With AI Firm Mea Platform
The Latest Launches: Chubb, Zurich, FM, QBE NA and More
  • Reinsurance
  • Emerging Markets
  • Global Economy
  • Personal Lines
  • Commercial Lines
  • Specialty
Zurich NA Names New U.S. National Accounts, Underwriting Leaders
Georgia Becomes Second State to Shield Bayer From Roundup Cancer Claims
  • Insurance Regulation
  • Securities Regulation
  • Accounting & Tax
  • Rating Agencies
Too Late? S&P Downgrades State Farm General (Updated)
State Farm’s Emergency Homeowners Rate Hike Gets OK in California
AIG: Turning One Human Underwriter Into Five, ‘Turbocharging’ E&S
Progressive Insurance Is Hiring Again; 12,000 More People Needed
Too Late? S&P Downgrades State Farm General (Updated)
Lawsuits Accuse Insurers of Colluding to Drop Coverage in Fire-Prone Areas of California

See all Top 50

‘Can’t Cut to Greatness’: Wilson Lays Out Simple Strategy for Markel E&S
Rethinking the Carrier-Agent Relationship in a Digital-First World
How Embedded Insurance Supports Real Livelihoods in the On-Demand Economy
Insurers: It’s Time to Overexplain Your Use of AI

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.

Wells Fargo, National General Face CA Regulatory Scrutiny in Auto Insurance Scandal

Print Email
August 8, 2017 by Suzanne Barlyn

California will investigate whether Wells Fargo & Co and an insurance company harmed hundreds of thousands of residents by selling them insurance they did not need, the state’s insurance regulator said on Tuesday.

California Insurance Commissioner Dave Jones said in a statement his department will look into so-called “force-placed” or “lender-placed” auto insurance underwritten by National General Insurance Co for customers with auto loans from Wells Fargo.

Wells Fargo declined to comment on the probe, while a National General representative could not be immediately reached for comment.

Unwanted auto insurance is the latest chapter in a months-long scandal over sales practices at Wells, where employees also created as many as 2.1 million deposit and credit card accounts in customers’ names without their permission.

The probe by California follows subpoenas issued by New York state’s banking and insurance regulator to two Wells Fargo units on Aug. 2.

The New York Department of Financial Services (NYDFS) is demanding Wells turn over loan contracts with New York borrowers, its financing agreements with auto dealers, and agreements between Wells units and insurers, among other details, according to copies of the subpoenas seen by Reuters.

Wells first became aware of potential problems a year ago, when the auto lending business began receiving an unusually high number of complaints, Franklin Codel, head of consumer lending, said in a recent interview.

The bank said it would refund about $80 million to an estimated 570,000 customers who were wrongly charged for auto insurance from 2012 to 2017, including roughly 20,000 whose vehicles were repossessed.

“Wells Fargo discontinued its Collateral Protection Insurance (CPI) program in September 2016 after finding inadequacies in vendor processes and our internal controls that negatively impacted some customers,” the company said in a statement.

National General was identified as an underwriter of the insurance in a report into the matter prepared for Wells by consultancy Oliver Wyman. The New York Times obtained a copy of the report.

Copyright 2025 Reuters. Click for restrictions.
Print Email
Claims / LegalCommercial LinesGlobal EconomyIndustry NewsInternationalLitigation/Liability TrendsMarketsNewsRiskThe C-SuiteU.S.Underwriting

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.

Too Late? S&P Downgrades State Farm General (Updated)
Free Calculator Helps Businesses Estimate Their Cyber Risk
Rethinking the Carrier-Agent Relationship in a Digital-First World
Commercial Property Customers Cutting Insurance Corners Despite Risk

Related Articles

Wells Fargo Plan to Repay Customers Pushed Into Unnecessary Auto Insurance Reportedly Rejected by Regulators
Another Wells Fargo Snafu: It May Have Harmed Customers by Closing Real Accounts
Wells Fargo Will Refund $80M to Customers Wrongly Charged for Car Loan Insurance
U.S. Regulator Faults Wells Fargo Over Auto Insurance Abuses: NYT Report
New York Regulators Seek Info From National General, Others in Wells Fargo Scandals
Wells Fargo Accused of Charging Improper Mortgage Fees in Proposed Class Action Lawsuit
Wells Fargo Admits Discovery of 1.4M Additional Bogus Customer Accounts
New Wells Fargo Disclosures May Jeopardize $142M Customer Class Action Settlement
Another Wells Fargo Lawsuit, This Time Over Merchant Credit Card Fees
Wells Fargo Customers Sue Bank, Alleging Insurance Scheme Was a Scam
Wells Fargo Will Fork Over $108M to Settle Lawsuit Over Veterans’ Loans

Our Contributors

Umakant NarkhedeInsurers: It’s Time to Overexplain Your Use of AI
Taro RambergInsuring Emerging Risks in Era of Rapid Technological Change
James Felton KeithNavigating DEI Legally: Emphasizing Equity Without Legal Pitfalls
Dan BratshpisHow Embedded Insurance Supports Real Livelihoods in the On-Demand Economy
Dawn D. Bennett-AlexanderNavigating DEI Legally: Emphasizing Equity Without Legal Pitfalls
Sandra TataThe Workplace Is Changing; So Are the Risks for Employment Discrimination Claims
See All Our Contributors

Free Newsletter

NewsletterSign up to receive daily news!

Features

  • P/C Market Challenges Fuel Surplus Lines Opportunities: AM Best
  • ‘Can’t Cut to Greatness’: Wilson Lays Out Simple Strategy for Markel E&S
  • Rethinking the Carrier-Agent Relationship in a Digital-First World
  • How Embedded Insurance Supports Real Livelihoods in the On-Demand Economy
  • Insurers: It’s Time to Overexplain Your Use of AI
  • Innovation: Why Carriers Shouldn’t Try to Keep Up With the Joneses

News

  • FEMA Chief Says Agency Will Raise State Burden for Disasters to 50%
  • Insurance Pacesetters Creating New Skills, Career Pathways to Remain Relevant: Report
  • Workers Express Lower Tolerance for Toxic Environments
  • Report: California Workers Comp Combined Ratio Highest in 14 Years
  • New Jersey Announces $450M PFAS Settlement With 3M Days Before Trial
  • Zurich NA Names New U.S. National Accounts, Underwriting Leaders
  • C-Suite
  • News
  • Leadership
  • Markets
  • Regulation
  • Top 50
  • Members Only
  • Videos

Headlines

  • Keeping Humanity Alive in Tech-Forward Insurance Teams
  • Turbocharging E&S: AIG's AI Push
  • Data Insight: Who's Growing in Personal Lines?
  • Evacuating in a Wildfire: A Personal Story

Resources

  • Videos / Podcasts
  • Contributors

Popular Topics

  • Boardroom Agenda
  • Technology
  • Financial
  • News

Brand Spotlight

  • Cotality
  • 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
© 2025 by Wells Media Group, Inc. Privacy Policy | Terms & Conditions | Site Map

We have updated our privacy policy to be more clear and meet the new requirements of the GDPR. By continuing to use our site, you accept our revised Privacy Policy.