The Department of Financial Services fined Lockton Cos. $7 million for its liability coverage sales.
New York state regulators have deemed an NRA branded insurance program to be unlawful. Lockton Cos. said back in February that it would shut down its National Rifle Association brokerage services.
The company continued to sell the branded insurance policies meant for firearm owners and users.
The NRA branded insurance program was designed to cover gun owners. It is a form of liability coverage in case the firearm owners were ever charged with a crime involving the gun. The New York Department of Financial Services fined Lockton Cos, the administrator of the insurance, as well as an affiliate $7 million.
Moreover, those companies will no longer be able to participate in the NRA’s “Carry Guard” program. Live Insurance News reported on the launch of the Carry Guard program launch in April 2017.
The fines and penalties were described in official detail in an NY Department of Financial Services press release.
Lockton stated that it fully intended to cooperate with regulators regarding the NRA branded insurance program.
That insurance company initially stated that it would cease providing brokerage services for all NRA endorsed insurance programs. This occurred immediately following February’s Parkland, Florida school shooting.
It is our responsibility to ensure we are fully compliant,” said Dean Davison, a company spokesperson as quoted in a Bloomberg report. “We believe this settlement is the best way to resolve these issues.”
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According to NRA lawyer, William Brewer, the NRA never deviated from appropriate actions. Moreover, it relied on Lockton and the assurances that company made to know that the program was in full compliance with New York State regulations.
The NRA branded insurance program, Carry Guard, is marketed on its website as the Unit
ed States’ “most complete self-defense membership program.” It describes Lockton’s policies as being “comprehensive personal firearms liability insurance.”
On the other hand, New York regulators explained that the insurance plans offered unlawful protection in the case of certain intentional illegal acts. Moreover, the plan, nicknamed “murder insurance’ by gun control advocates, offered improper coverage for acts of self defense.