Insurance Commissioner investigating allegations that Wells Fargo signed up consumers for insurance without their permission
News: 2016 Press Release
SACRAMENTO, Calif. — Insurance Commissioner Dave Jones today directed the California Department of Insurance to launch an investigation into allegations made by former employees of Prudential Insurance Company that Wells Fargo employees signed up consumers for Prudential insurance without the consumers' authorization.
Commissioner Jones asked department investigators to investigate all aspects of these allegations, including possible violations of California laws that requiring persons transacting insurance to have an insurance license issued by the department.
"Investigators with the California Department of Insurance will investigate new allegations of fraud and misconduct made by former Prudential employees regarding Wells Fargo and its employees," said Commissioner Dave Jones. "Former Prudential employees who filed a whistleblower lawsuit allege that Wells Fargo signed up consumers for Prudential insurance policies without consumer permission much as Wells Fargo admitted its employees illegally signed up consumers for bank products without permission. We will also examine Prudential Insurance company's practices in this regard."
Wells Fargo has admitted that as many as two million unauthorized accounts for its consumers were created by thousands of Wells Fargo employees. Prudential has a partnership with Wells Fargo to sell insurance products to Prudential's customers. The California Department of Insurance will conduct its independent investigation in collaboration with the New Jersey Division of Insurance, which is also investigating this issue.
Led by Insurance Commissioner Ricardo Lara, the California Department of Insurance is the consumer protection agency for the nation's largest insurance marketplace and safeguards all of the state’s consumers by fairly regulating the insurance industry. Under the Commissioner’s direction, the Department uses its authority to protect Californians from insurance rates that are excessive, inadequate, or unfairly discriminatory, oversee insurer solvency to pay claims, set standards for agents and broker licensing, perform market conduct reviews of insurance companies, resolve consumer complaints, and investigate and prosecute insurance fraud. Consumers are urged to call 1-800-927-4357 with any questions or contact us at www.insurance.ca.gov via webform or online chat. Non-media inquiries should be directed to the Consumer Hotline at 800-927-4357. Teletypewriter (TTY), please dial 800-482-4833.