Insurance company Lockton Cos LLC has been fined $7 million for providing insurance on behalf of the National Rifle Association in New York, despite the fact that the NRA has no license from the Department of Financial Services to make such an offering.
According to the NRA Carry Guard website, the program’s mission is to provide training and other resources for the millions of legally-armed Americans who the website characterizes as “among the safest, most responsible, most law-abiding group of people on the planet”.
While those other resources are not explicitly outlined, the NRA notes that because “bad things sometimes happen to good people”, it can help gunowners facing “serious criminal or civil liability” when such bad things happen.
A DFS investigation found that the NRA Carry Guard insurance program provided insurance to gun owners for acts of intentional wrongdoing, and improperly provided insurance coverage for criminal defense.
“DFS will not tolerate conduct by any entity, licensed or otherwise, in contravention of New York Insurance Law,” said Maria Vullo, DFS superintendent, in a press release describing a consent order the agency reached with Lockton.
In New York, Lockton provided such insurance policies for 680 gunowners, but as part of its arrangement with the state, it will no longer participate in the NRA Carry Guard program or other programs like within the state of New York.
Reuters reports Lockton announced in February that it would no longer sell insurance products endorsed by the NRA.