CAL INS Wells Fargo $10mn Fine

On Jan. 2, CAL INS fined Wells Fargo $10mn re insurance sales.

Alleged Violations

  • Improper insurance sales practices related to online insurance referral program.
  • Consumers were signed up and charged for insurance products without consent.


  • No transactions of new business during remaining term of two insurance licenses.
  • Current insurance licenses are to expire in Jul. and September 2020 respectively.
  • Cannot apply for a license for at least 2 years following current license expiration.
  • $10mn penalty as part of an agreement with California Department of Insurance.
  • $5mn of the penalty due immediately and if the company ever seeks to return to
    the California insurance marketplace, it will then pay the remaining $5mn penalty.
  • Provide restitution to California consumers who were charged premium, bank fee
    and other direct monetary losses in connection to unauthorized insurance policies.