National Rifle Association Settles New York Insurance Violation Case for $2.5M

National Rifle Association NRA
National Rifle Association Settles New York Insurance Violation Case for $2.5M

New York – -( The National Rifle Association will pay the state of New York $2.5 million to settle a claim by that state’s Department of Financial Services (DFS) that it violated the state’s insurance laws by “soliciting and marketing the sale of insurance products” under its Carry Guard program, according to ABC News.

Under terms of the settlement, NRA will not market insurance in the Empire State for the next five years.

The Times Herald-Record quoted a statement from DFS Superintendent Linda Lacewell in which she said, “The NRA operated as an unlicensed insurance producer and broke the New York Insurance Law by soliciting insurance products and receiving compensation. 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.”

New York law does not allow insurance that covers intentional acts, which would include the act of self-defense.

The settlement does not get NRA out of trouble in New York, however.

The organization is still in the crosshairs of New York Attorney General Letitia James, who sued earlier this year to have the NRA dissolved. NRA was founded in New York State in 1871, making the association subject to New York state law.

According to The Guardian, the insurance lawsuit 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 $1.8m in associated royalties and fees.”

The NRA had endorsed “certain insurance products offered by Lockton Affinity” including the Carry Guard insurance. NRA received “substantial compensation” for endorsing these “insurance products,” the ABC story noted.

Carry Guard was launched in 2017 at a time when there was a growing interest in similar efforts. As recalled by the Minneapolis Star-Tribune and Associated Press, gun control advocates quickly labeled such programs as “murder insurance.”

There has always been considerable irony in this because among the demands of anti-gunners over the years was one specifically aimed at mandating insurance for gun owners. When programs such as Carry Guard were created, however, the gun prohibition lobby began howling.

While it did settle and will pay the fine, NRA did not admit wrongdoing, a fact noted by the Guardian’s coverage of the settlement. Also, NRA said it didn’t underwrite its insurance programs.

Lockton Affinity was reportedly fined $7 million as part of the same investigation.

The Star-Tribune referred to an email from William A. Brewer III, NRA’s attorney, which asserted, “The DFS inquiry, which began with a roar, ends with a whimper.” He said no NRA member money will be used to pay the settlement.

The consent order settling the case was signed a week ago, according to published reports, and only announced Wednesday.

The NRA has been under fire for the past couple of years, with allegations of spending improprieties and no small amount of intrigue beginning with the abrupt resignation of Lt. Col. Oliver North as association president as the annual members’ meeting and convention was about to open in Indianapolis in an apparent dispute with Executive Vice President Wayne LaPierre. At the time, there were allegations of an attempted “coup” effort to remove LaPierre, who has been at the NRA helm for more than two decades and remains there today.

The ongoing legal action by Attorney General James is detailed in the 164-page complaint, which may be read here. She began investigating NRA in February 2019, a move NRA members and supporters have called purely political.

In a prepared statement released in early August as she filed the lawsuit, James asserted, “The NRA’s influence has been so powerful that the organization went unchecked for decades while top executives funneled millions into their own pockets. The NRA is fraught with fraud and abuse, which is why, today, we seek to dissolve the NRA, because no organization is above the law.”

Among the allegations spelled out in the complaint and James’ statement are that four current or past NRA officials named as defendants “failed to fulfill their fiduciary duty to the NRA and used millions upon millions from NRA reserves for personal use, including trips for them and their families to the Bahamas, private jets, expensive meals, and other private travel.”

About Dave Workman

Dave Workman is a senior editor at and Liberty Park Press, author of multiple books on the Right to Keep & Bear Arms, and formerly an NRA-certified firearms instructor.

Dave Workman

Most Voted
Newest Oldest
Inline Feedbacks
View all comments

Although it’s becoming easier to attack the NRA these days, this sentence caught my attention the most:
“New York law does not allow insurance that covers intentional acts, which would include the act of self-defense.”

That is an astonishing assault on constitutional rights and freedom.

Ansel Hazen

This is why we should never give the Left what it wants as you can pretty much guarantee they will turn around and twist it to their advantage.

Green Mtn. Boy

“Little Wayne La Pew Pew’s disastrous Carry Guard insurance program, which has since ceased operation, has cost it tens of millions of dollars in fines and legal fees. The ill-conceived program wasn’t structured in such a way as to comply with insurance laws in many of the states in which it sold policies. ”

Negotiating Rights Away strikes or should I say fails yet again, if nothing else WLP guidance could best be described as ill-conceived.
Not Another Penny !

Watch um

The problem is you Mr green mt.boy, not the NRA. You and your asshat friends. As a retired Constable I hope you are the first that my police friends knock on your door and take your guns you asshat

Green Mtn. Boy

For some the awful truth of Negotiating Rights Away and their battle against Americans second amendment rights is a hard pill to swallow. The truth is out there in records and testimony if one looks and it doesn’t speak well for the organization now or historically and the Anti gun crowd doesn’t realize that the NRA is their best friend. For myself I spent a life time of support for the organization and about ten years back I came across some of the of the same damming documents.I looked even further and stopped being a willing sheep for the NRA… Read more »


Come and get it, MF’r! ßring your own ßody ßag.


87% of LEOs give the other 13% a bad name.

Dave in Fairfax

Watch um,

OK, I’ll bite, what did he say that was wrong? The problem IS with the actions of the NRA. Why would you want to send your “friends” into a deadly situation without cause? Where were you a constable, that might explain a lot of your attitude.

Last edited 1 year ago by Dave in Fairfax



Ah, no problem. Hopefully “Watch um” is a tiny minority within the LEO community. However, I am concerned after watching:

LEOs arresting a person for playing catch with his daughter in a vacant park, arresting a paddle boarder in the ocean, arresting a gym owner for operating his gym, arresting a woman for cutting hair, arresting a person for singing in a church parking lot, etc.

LEOs not arresting people for committing arson, intimidating motorists, beating people, looting, and committing major acts of vandalism

Ansel Hazen

The Constable of Claptrap I suspect.

Green Mtn. Boy


I didn’t really ever expect to hear back from Watch Em as it’s rather difficult to dispute truth. No matter how hard it is to comes to terms with what Negotiating Rights Away has perpetrated on it’s members since 1934.

Green Mtn. Boy


Funny as it was a friend who is a constable in Vermont that educated me as to the NRA’s historical capitulation of Americans 2 nd. amendment rights.

Dave in Fairfax


It seems odd, given as how they are used as the Left’s whipping boy for all things gun. We’ve covered it here repeatedly. They really want to be a training org and little more. They had to be dragged kicking and screaming into the political side of gun rights, which may have a lot to do with their views and actions now. If the Left had 1/2 a brain, they’d rally behind the NRA and try to help it return to its roots. It’s a strange world.


This tyrant, like the NRA, loves his red flag laws!


It’s very difficult to feel sorry for a large percentage of the people running the NRA. It’s unfortunate that such a large percentage of firearm owners still view them as our advocate. Instead of giving money to the NRA, it would be wiser for people to: 1) Give money to other 2nd Amendment advocacy organizations, especially those who encourage grassroots activism (the NRA does not lead activism by its members) 2) Give money directly to pro 2nd Amendment candidates 3) Use your money to hold your own town hall meetings, debates, Q&A forums, etc. for your state legislators. Advertise the… Read more »


I also highly recommend organizing debates with state legislature candidates. It’s a great way to get them to commit to specific positions or learn they are in favor of yet more gun control. It’s also a good way to allow the community to ask questions directly.


Is there a problem? Doesn’t Wayne LaPierre LIKE expensive suits? In reality, though, I am ashamed and outraged to see my donations going for crap like this.


I can understand the NRA incorporating in NY in 1871, when the state’s view of gun owner rights didn’t differ from any other state, and the organization was mainly a gun club. But after all these years, the higher-ups couldn’t find a friendlier local? What was wrong with Virginia? Or, better yet, and still near DC, West Virginia?

Last edited 1 year ago by Wass

Their headquarters are in VA.

Charlie Foxtrot

Moving the charter to a different state is complex and requires dissolving the NRA in one state and re-incorporating it in another state. This requires significant changes to the NRA bylaws, corporate structure and assets that would give the members the opportunity to get rid of the old guard (Wayne LaPierre & Co). That’s why this will not happen as long as the old guard runs the NRA.

Watch um

Screw you, you don’t know what you are talking about.


Are you a fan of Red Flag laws (the worst “gun control” laws of all time)? How about encouraging the President to bypass the legislature and direct an agency to enact new gun control without the review of elected officials?

Do you believe Wayne has not inappropriately used the donations of NRA members?

Dave in Fairfax

Watch um,

You seem to be new here. I see two comments in your history, both today, both personal attacks with no explanation for your views. I recommend that you re-read the comment policy.
Ammoland Comment Policy

Charlie Foxtrot

This may be a new account, but the poster named “Watch um” with that attitude toward attacking people that criticize the NRA isn’t new:

Dave in Fairfax


Thanks. I did a more thorough search. He started getting cranky around March and changed his name. I still recommend that he read the policy and start doing more in his replies than merely attack people.