Prudential Financial Inc. is reviewing Wells Fargo & Co.'s distribution practices related to the insurer's MyTerm policies and will suspend policy distribution through all bank branches and its website, pending review results.
Launched in 2007, MyTerm is a simplified issue term insurance product created to give customers access to life insurance through a self-assisted, technology-enabled application process. In June 2014, Prudential entered into a distribution agreement with Wells Fargo, whereby the latter's customers could buy the product through bank branches and website.
Prudential's 2015 survey of Wells Fargo customers about their experience with MyTerm did not indicate potential fraudulent activity. However, Prudential expanded its review into how the product was being sold after the bank's sales practices scandal made headlines.
Steve Pelletier, executive vice president and COO of Prudential's U.S. businesses, said any Wells Fargo MyTerm customer concerned about the way in which the product was purchased will be fully reimbursed and the policy will be cancelled.
The New York Times recently reported that three former Prudential executives said Wells Fargo employees appeared to have signed up bank customers, without their authorization, for Prudential insurance, particularly its MyTerm policies.