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 – -(AmmoLand.com)- 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 TheGunMag.com and Liberty Park Press, author of multiple books on the Right to Keep & Bear Arms, and formerly an NRA-certified firearms instructor.

Dave Workman

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Will
Will
11 days ago

JOIN GOA,THE ONLY NO-COMPROMISE GUN LOBBY IN WASHINGTON!

Bill
Bill
11 days ago

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.

Will
Will
10 days ago
Reply to  Bill

Scumbag Lapierre was trying and succeeded in getting “his BOD of gutter trash”” to purchase him a $2.5M mansion too! The NY AG put the brakes on that ! Not exactly what us former members signed up for is it?

JNew
JNew
11 days ago

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
Ansel Hazen
10 days ago
Reply to  Dave Workman

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.

Wass
Wass
11 days ago

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 11 days ago by Wass
Intrceptor
Intrceptor
10 days ago
Reply to  Wass

Their headquarters are in VA.

Charlie Foxtrot
Charlie Foxtrot
10 days ago
Reply to  Wass

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.

Green Mtn. Boy
Green Mtn. Boy
12 days ago

“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
Watch um
11 days ago
Reply to  Green Mtn. Boy

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
Green Mtn. Boy
11 days ago
Reply to  Watch um

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 »

Boz
Boz
11 days ago
Reply to  Watch um

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

JSNMGC
JSNMGC
11 days ago
Reply to  Watch um

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

Patriot Solutions
Patriot Solutions
11 days ago
Reply to  JSNMGC

^^^^^That^^^^^

Dave in Fairfax
Editor
Dave in Fairfax
10 days ago
Reply to  Watch um

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 10 days ago by Dave in Fairfax
Will
Will
10 days ago

Dave,I really doubt that Watch um was ever a Constable or a member of LE anywhere. It’s obvious he has some sort of mental/emotional problems. GMB was stating the absolute truth about the former NRA and all Watch um had for him was insults and nothing else. Even JSNMGC was trying to get him to explain his position about the NRA but to no avail.

JSNMGC
JSNMGC
10 days ago
Reply to  Will

Even?

Will
Will
10 days ago
Reply to  JSNMGC

,I should had worded that different. My bad brother.

JSNMGC
JSNMGC
7 days ago
Reply to  Will

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
Ansel Hazen
10 days ago
Reply to  Will

The Constable of Claptrap I suspect.

Will
Will
10 days ago
Reply to  Ansel Hazen

Ansel,ain’t that the truth!

Green Mtn. Boy
Green Mtn. Boy
9 days ago
Reply to  Will

@ Will

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
Green Mtn. Boy
9 days ago

Dave

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
Editor
Dave in Fairfax
9 days ago
Reply to  Green Mtn. Boy

GMB,

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.

Stag
Stag
9 days ago
Reply to  Watch um

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

Will
Will
9 days ago
Reply to  Stag

Stag,that’s the absolute truth. Lapierre and his corrupt and complicit BOD is the last thing this country and the 2A need. The last fives years they have done decades worth of damage to our rights. Total scum all of them! JOIN GOA!

Will
Will
12 days ago

Does the criminal,corrupt,and complicit NRA BOD still plan on buying full time scumbag and thief Wayne Lapierre a $3.5 M.mansion? When these son of a bitches names turn into numbers in the federal lockup it will be a wonderful thing!

JSNMGC
JSNMGC
12 days ago
Reply to  Will

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 »

Will
Will
12 days ago
Reply to  JSNMGC

I’m personally all in with GOA although there are other fine Pro-2A groups too! You’re correct in sending money directly to political candidates and never through the NRA. The money would just be stolen once it hit those greedy bastards hands.Every dollar that goes to the NRA is spent on 2M$ a month attorney fees to keep these thieving parasites out of jail. They betrayed former members,the 2A and the country! They can rot in hell!

JSNMGC
JSNMGC
12 days ago
Reply to  Will

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.

Watch um
Watch um
11 days ago
Reply to  Will

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

JSNMGC
JSNMGC
11 days ago
Reply to  Watch um

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?

Will
Will
11 days ago
Reply to  Watch um

Watch um,is being a scumbag something you work at or does it just come natural?

Dave in Fairfax
Editor
Dave in Fairfax
10 days ago
Reply to  Watch um

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
Charlie Foxtrot
10 days ago

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: https://www.ammoland.com/2020/08/nras-wayne-lapierre-has-a-message-for-members/#comment-2838386

Dave in Fairfax
Editor
Dave in Fairfax
10 days ago

CF,

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.