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Features/Scandals

Wells Scandal Spreads to Prudential Life Insurance Policies

December 12, 2016

Prudential Financial announced Monday it would suspend distributing insurance policies through Wells Fargo, a response to the sales-practices scandal.

 

Prudential said it was reviewing how the matter affected the sales of its MyTerm life insurance policy, which it agreed in 2014 to sell to Wells Fargo customers through self-service kiosks in Wells branches as well as through its website. Prudential COO Steve Pelletier said that “if any Wells Fargo MyTerm customers have concerns about the way in which the product was purchased, we will reimburse the full amount of the premiums they paid and cancel the policy.”

 

Last year, Prudential said it surveyed Wells Fargo customers about their experience with MyTerm, including reasons why some of them allowed the product to lapse. Those responses didn’t indicate potential fraudulent activity, but in a statement Prudential said that “following the revelations about Wells Fargo’s sales practices this fall,” the company expanded its review into how the product was sold.