New York Bans NRA Insurance Program, Fines Lockton

The NRA is suing Lockton Cos., alleging the insurance broker breached its contract.
May 8, 2018

The New York Department of Financial Services (DFS) has fined Lockton Cos. $7 million for arranging the NRA Carry Guard insurance program because it violated state law. The National Rifle Association (NRA) program allows policyholders to buy policies that cover legal costs in self-defense shootings. Sales of the policies were halted last fall when DFS began its investigation. DFS Superintendent Maria T. Vullo said the investigation concluded that Carry Guard unlawfully provides liability insurance to gun owners for certain acts of intentional wrongdoing, which is prohibited by state law. Vullo added that Carry Guard is “an egregious violation of public policy designed to protect all citizens.”

Vullo’s investigation also concluded that the NRA needed a New York insurance license for the program and did not have one, even though it actively marketed Carry Guard. The state found other problems with the program’s structure. DFS continues its investigation of the NRA, as well as Chubb and Lloyd’s of London for their roles in the insurance program.

The NRA acted appropriately at all times and relied on Lockton and its assurances that the program complied with state regulations, according to William Brewer, a lawyer for the NRA. The NRA is suing Lockton Cos., alleging the insurance broker breached its contract with the firearms lobbying group.

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