U.S. insurer Prudential Financial Inc (>> Prudential Financial Inc) said on Monday it had suspended the distribution of a low-cost life insurance policy through Wells Fargo & Co (>> Wells Fargo & Co), pending a review of how the product was sold by the bank.
California Insurance Commissioner Dave Jones told Reuters on Monday he had ordered an investigation into allegations, the latest regarding Wells Fargo’s sales practices, that retail bankers signed up customers for life insurance policies from Prudential without their permission.
The New Jersey Division of Insurance is also investigating, according to a Prudential spokesman and a news release from Jones’s office. Spokesmen for the New Jersey office had no immediate comment.
The allegations are part of a wrongful termination lawsuit filed by three former managers in Prudential’s corporate investigation division. The lawsuit was filed in New Jersey state court last week.