(Reuters) – The National Rifle Association agreed to a five-year ban on insurance business in New York State and will pay a $ 2.5 million bail to settle fees they offered insurance to unlicensed and hidden members how it routinely kept some premiums to itself.
The New York Department of Financial Services announced the settlement on Wednesday, just over three months after State Attorney Letitia James sued to dissolve the gun rights group, accusing it of widespread corruption.
Wednesday's agreement resolved charges for the NRA's two-decade relationship with insurance broker Lockton Cos. Inc., including the sale of 28,015 New York City insurance policies and the NRA's receipt of more than $ 1
Linda Lacewell, State's Chief of Insurance, said Lockton's NRA-labeled "Carry Guard" program offered illegal policyholders coverage for criminal defense costs and "intentional" use of
She also accused the NRA of misleading promising coverage for arms dealers, instructor dealers, , clubs and exhibitions at the "lowest possible cost", while in fact the group normally held between 13.7% and 21.9% of premiums paid.
Lawyers for the NRA had no immediate comment. They have said that the NRA did not subscribe or administer insurance programs, and that "countless" affinity groups relied on industry experts to market products to their members.
The NRA has long struggled with New York government officials, including the May 2018 trial in which it accused Governor Andrew Cuomo of trying to "blacklist" to pressure banks and insurance companies to stop doing business with it.
"It would be very unusual for a state to allow an insurance company to reimburse an illegal activity," Gov Cuomo told CNN three months after the lawsuit was filed. "They call it" murder insurance. ""
The finance department fined Lockton $ 7 million in May 2018 for its involvement with Carry Guard. Catalog