NRA pays $2.5M after NYS probe into 'dangerous' insurance
New York financial regulators say the National Rifle Association is banned from marketing insurance in New York for five years and will pay $2.5 million to settle an investigation into "dangerous" policies that covered gun owners' costs related to self-defense shootings.
The New York State Department of Financial Services announced the consent order with the powerful gun advocacy group after a three-year investigation into possible violations of state insurance law.
“The NRA operated as an unlicensed insurance producer and broke the New York Insurance Law by soliciting insurance products and receiving compensation,” said DFS Superintendent Linda Lacewell. “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.”
DFS said more than 28,000 NRA-endorsed policies were placed in New York. Carry Guard was marketed and sold throughout the United States, with about 680 policies issued to New York residents.
"In the Consent Order, DFS found that the Carry Guard program offered coverage that is unlawful in New York State, namely coverage for losses and costs associated with the aftermath of the purposeful use of the firearm, including defense costs in a criminal prosecution," Lacewell continued. "Under New York law, intentional acts cannot be insured."
An attorney for the NRA said the organization has not admitted to any crimes as a part of the settlement.