The National Rifle Association (NRA) has agreed to pay $2.5 million to the state of New York for selling insurance to members without a license and concealing how the group kept some premiums for itself, Reuters reported.
The NRA is also banned from doing insurance business in New York for 5 years, according to the report.
The NRA violated several state insurance laws and regulations when selling insurance products, including Carry Guard, New York’s Department of Financial Services said when they announced the settlement Wednesday.
#ICYMI: #NYDFS Supt. @LindaLacewell announced a settlement with the NRA to resolve a case involving violations of New York Insurance Law. Learn more: https://t.co/stncKSgrYV.
— NYDFS (@NYDFS) November 18, 2020
The settlement was related to the NRA’s alleged ties to insurance broker Lockton Cos, which dates back 20 years, Reuters reported. The gun rights group received more than $1.8 million in royalties and fees associated with the sale of 28,015 insurance policies to New York residents. (NY AG Says ‘It Was The Diversion Of Millions, Upon Millions Of Dollars’ That Led Her To Make Move Against NRA)
“The NRA operated as an unlicensed insurance producer and broke the New York Insurance Law by soliciting insurance products and receiving compensation,” New York Department of Financial Services (DFS) Superintendent Linda Lacewell said in a press release. “Even worse, the NRA violated the New York Insurance Law by soliciting dangerous and impermissible insurance products, including those within its Carry Guard program that purported to insure intentional acts and criminal defense costs. The Department will continue to protect the integrity of the insurance market for the purposes of safety and soundness and the good of all consumers.”
Under state law, intentional acts associated with a shooting cannot be covered by insurance.
“The DFS inquiry, which began with a roar, ends with a whimper,” William A. Brewer III, counsel to the NRA, told the Daily Caller. “The consent order contains no admissions by the NRA, and no NRA member money will fund this settlement.”
“Although DFS has settled its claims against the NRA, the NRA’s claims against DFS – and New York Governor Andrew Cuomo, and New York Attorney General Letitia James – will go forward,” Brewer added.
In early August, New York Attorney General Letitia James announced that she was filing a lawsuit against the NRA for alleged financial misconduct by several senior executives, claiming that they cost the organization $64 million over a 3-year period. The NRA denied the allegations and filed a counter lawsuit claiming that James’ actions were politically motivated.