Lloyd’s Directs Syndicates to Exit NRA Programs
Lloyd’s has directed syndicates to stop covering insurance programs associated with the National Rifle Association (NRA). The action comes after New York State regulators hit Chubb with a $1.3 million fine for underwriting an NRA-branded Carry Guard program in violation of state law. In a statement, Lloyd’s said it gave the matter very careful consideration, and “Lloyd’s Corp. has decided to direct underwriters in the market to terminate any existing programs of this type and not to enter into any new ones.”
The New York Department of Financial Services found that the insurance program unlawfully provided liability insurance to gun owners for acts of intentional wrongdoing, according to a department statement, and improperly provided legal services insurance to gun owners and resident family members charged criminally after a covered act of self-defense. Lockton Cos. and affiliate Lockton Affinity earlier were fined $7 million for its administration of the Carry Guard insurance program.
The NRA has sued Lockton Cos., alleging the brokerage breached its contract by refusing to offer the NRA’s Carry Guard insurance program in New York state as part of a consent agreement with state regulators. In addition, the NRA has filed a lawsuit against New York’s insurance regulator and Governor Andrew Cuomo, alleging a regulatory overreach that resulted in violations of the NRA’s First Amendment rights.