The National Rifle Association has been hit with a $2.5 million fine stemming from charges it violated New York insurance law by failing to obtain a license to sell insurance products in New York.
The fine was announced Wednesday morning by Financial Services Superintendent Linda Lacewell, a top insurance regulator in New York state government.
The case began earlier this year when insurance regulators focused on the NRA's marketing of products like the Carry Guard insurance program. The gun rights group marketed and sold the policies to NRA members, family members and affiliated businesses in the state. The NRA had endorsed the insurance products and played a role in selling them, but lacked the proper license to do so from the Department of Financial Services.
More than 28,000 policies were sold in New York through Lockton Affinity Series of Lockton Affinity, state officials said.
“The NRA operated as an unlicensed insurance producer and broke the New York Insurance Law by soliciting insurance products and receiving compensation,” Lacewell said.
“Even worse, the NRA violated the New York Insurance Law by soliciting dangerous and impermissible insurance products, including those within its Carry Guard program that purported to insure intentional acts and criminal defense costs. The Department will continue to protect the integrity of the insurance market for the purposes of safety and soundness and the good of all consumers.”
This is not the end of the NRA's legal woes in New York. The organization is being investigated by New York Attorney General Letitia James following reports of improper money transfers and contracts.
The probe could result in the loss of its non-profit status and dissolution; the NRA's charter to operate was filed in New York.