NEW YORK – The state of California has ordered an investigation into allegations Wells Fargo retail bankers signed up customers for life insurance policies from Prudential Financial without their permission.
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Dave Jones, California's Insurance Commissioner, told Reuters on Monday that his office would hold an inquiry.
Earlier on Monday, Prudential Financial said it had suspended the distribution of a low-cost life insurance policy through Wells Fargo, pending a review of how the product was sold by the bank.
Wells Fargo's sales practices have been under a spotlight since September when regulators ordered the bank to pay $190 million in fines and restitution to settle charges that its employees opened as many as 2 million deposit and credit card accounts without customers' permission.
(Reporting by Suzanne Barlyn; Editing by Carmel Crimmins and Meredith Mazzilli)