Following Prudential Financial Inc.'s suspension of the distribution of MyTerm policies through Wells Fargo & Co., the latter said it has discontinued referrals of renters' insurance to another insurer, according to separate reports from Reuters and The New York Times, citing Wells Fargo spokesman Mark Folk.
The bank plans to suspend the sale of the product pending completion of its review of online insurance product referrals, according to the Times' report. Although Folk did not specify the carrier, Reuters said Wells Fargo offers the product through a partnership with Assurant Inc.
Assurant does not comment on the company's clients, according to the reports, citing a spokeswoman.
Further, a class-action lawsuit was filed against Prudential on behalf of Wells Fargo clients claiming they did not know they were enrolled for the insurer's policies, Reuters reported. The suit was filed Dec. 12 in the U.S. District Court for the District of New Jersey. Three former Prudential employees have filed a separate lawsuit against the company, alleging that the insurer wrongfully terminated them after they had attempted to escalate their findings about the activities at Wells Fargo.