NEWARK, N.J., Dec. 12, 2016 - Prudential Financial, Inc. (NYSE: PRU) announced today that it will suspend the distribution of MyTerm policies through all Wells Fargo bank branches and website, pending the results of Prudential’s review of how the product is sold by Wells Fargo.
Launched in 2007, MyTerm is a simplified issue term insurance product that was created to give customers greater choice and 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 MyTerm product was made available to Wells Fargo customers through self-service kiosks in Wells Fargo bank branches and its website.
Last year, Prudential’s Individual Life Insurance business surveyed Wells Fargo customers about their experience with MyTerm, including reasons why some of them allowed the product to lapse. The customer responses did not indicate potential fraudulent activity. Following the revelations about Wells Fargo’s sales practices this fall, Prudential expanded its review into how the product was sold and asked for Wells Fargo’s assistance in gathering all the necessary facts.
“We stand behind the MyTerm product but have decided to suspend sales of that product through Wells Fargo’s retail banking franchise until we have all the facts about whether it is being distributed properly and in the best interest of customers,” said Steve Pelletier, executive vice president and chief operating officer of Prudential’s U.S. Businesses. “While our review is ongoing, Prudential remains squarely focused on doing what is right for our customers. If any Wells Fargo MyTerm customers have concerns about the way in which the product was purchased, we will reimburse the full amount of the premiums they paid and cancel the policy. We have also set up a toll-free hotline for these customers.”
Any Wells Fargo customer questions regarding MyTerm should be directed to the Prudential customer hotline. The toll-free hotline number is 1-877-291-7193. The hotline is staffed from 8 a.m. – 8 p.m. EST.
Prudential Financial, Inc. (NYSE: PRU), a financial services leader with more than $1 trillion of assets under management as of September 30, 2016, has operations in the United States, Asia, Europe, and Latin America. Prudential’s diverse and talented employees are committed to helping individual and institutional customers grow and protect their wealth through a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds and investment management. In the U.S., Prudential’s iconic Rock symbol has stood for strength, stability, expertise and innovation for more than a century. For more information, please visit www.news.prudential.com.