New York fines NRA gun rights group, bans insurance sales for five years

By Jonathan Stempel NEW YORK (Reuters) - 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 civil fine to settle charges it offered insurance to members without a license and concealed how it routinely kept some premiums for itself.

Reuters November 19, 2020 01:06:09 IST
New York fines NRA gun rights group, bans insurance sales for five years

New York fines NRA gun rights group bans insurance sales for five years

By Jonathan Stempel

NEW YORK (Reuters) - 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 civil fine to settle charges it offered insurance to members without a license and concealed how it routinely kept some premiums for itself.

New York's Department of Financial Services announced the settlement on Wednesday, a little over three months after state Attorney General Letitia James sued to dissolve the NRA, the leading U.S. gun rights group, 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 associated royalties and fees.

Linda Lacewell, the state insurance superintendent, 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% and 21.9% of premiums paid.

The NRA has said it did not underwrite its insurance programs, and that like "countless" affinity groups it relied on industry experts to market products to members.. It did not admit wrongdoing in agreeing to settle.

William Brewer, a lawyer for the NRA, said in a statement: "The DFS inquiry, which began with a roar, ends with a whimper." He said the settlement has no effect on other litigation pending between New York state and the NRA.

The NRA has long battled with New York state officials, including in a May 2018 lawsuit where it accused Governor Andrew Cuomo of attempted "blacklisting" for pressuring banks and insurers to send business elsewhere.

"It would be highly unusual for a state to allow an insurance company to reimburse for an illegal activity," Cuomo told CNN in August 2018. "They call it 'murder insurance.'"

The financial services department fined Lockton $7 million in May 2018 over its involvement with Carry Guard.

(Reporting by Jonathan Stempel in New York; Editing by Jonathan Oatis and Chris Reese)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

U.S. job openings rise slightly in September
Business

U.S. job openings rise slightly in September

WASHINGTON (Reuters) - U.S. job openings increased moderately in September and layoffs appeared to abate, pointing to a gradual labor market recovery from the COVID-19 pandemic.

Central bankers seek new role in brave new world
Business

Central bankers seek new role in brave new world

By Balazs Koranyi and Francesco Canepa FRANKFURT (Reuters) - Taking a break from fighting the coronavirus crisis, the world's top central bankers will attempt to resolve the existential questions of their profession this week as they tune into the European Central Bank's annual policy symposium. Having struggled to lift anaemic inflation for years, officials including the heads of the ECB, the U.S. Federal Reserve and the Bank of England will attempt to figure out why monetary policy is not working as it used to and what new role they must play in a changed world - be it fighting inequality or climate change.

Asian stocks extend gains as vaccine hopes support global reopening
Business

Asian stocks extend gains as vaccine hopes support global reopening

By Lawrence Delevingne BOSTON (Reuters) - Asian shares rose on Wednesday as hopes for a successful coronavirus vaccine lifted expectations of a swift reopening of the global economy, which would help the region's heavily trade-dependent markets.