August 1, 2021 23:08

NRA Pays $2.5M Fine, Suspends NY Insurance Business

The National Rifle Association agreed to a five-year suspension of its insurance business in New York state and will pay a $2.5 million fine to settle charges it offered insurance to members without a license and concealed how it kept some premiums for itself, reports The Guardian. New York’s department of financial services announced the settlement on Wednesday, a little over three months after the state attorney general, Letitia James, sued to dissolve the NRA, accusing it of widespread corruption. The settlement resolved charges over the NRA’s two-decade relationship with insurance broker Lockton Cos, including the sale of 28,015 policies to New Yorkers and the NRA’s receipt of more than $1.8 million in royalties and fees.

State Insurance Superintendent Linda Lacewell said Lockton’s NRA-branded “Carry Guard” program illegally offered policyholders coverage for criminal defense costs and the “intentional” use of firearms in shooting incidents. She also accused the NRA of misleading gun collectors, dealers, instructors, clubs and shows by promising coverage at the “lowest possible cost” when the group typically kept between 13.7 percent and 21.9 percent of premiums paid. The NRA has said it did not underwrite its insurance programs, and that relied on industry experts to market products to members. It did not admit wrongdoing in agreeing to settle. The NRA has long battled with New York state officials, including a 2018 lawsuit accusing Gov. Andrew Cuomo of attempted “blacklisting” for pressuring banks and insurers to send business elsewhere.

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