Which loan should be first on insurance?

Whichever loan closed first is the first lien holder. That's how it works.

Unless the first mortgage rolls over on it you are not going to get a loan from Wells Fargo.

Tell them to go fly a kite, and also tell them that you are going to report them to your state's insurance regulators. And then do it. Because what they are trying to get you to do is illegal. If your first mortgage lender ever foreclosed on you, the second is, as the name implies, second in line. They may get nothing. But if there is a property loss, as long as you carry sufficient insurance on the property, Wells Fargo will be paid, but NOT before the first lienholder.

They can insist all they want it's not possible. The first mortgage was there first. The only way is to pay off the first mortgage.

Wells Fargo know better. The first mortgage will not relinquish their position and Wells Fargo know this.

Wells Fargo will be listed as a payee after the first mortgage lender.

"FIGHT ON"

The first mortgage lender is first and the other one second, that is how it goes