New York’s Department of Financial Services recently levied a $7 million fine against Lockston Cos. for an insurance policy Lockston had administered to the National Rifle Association. The policy that was found to be unlawful provided liability coverage for gun owners in the event that they were charged with a crime that involved their firearms.
The program was known as “Carry Guard” and was actually branded as an NRA policy. Lockton, in an effort to distance themselves from the NRA, has said that they will to continue to fully cooperate with investigators and are stopping brokerage services for any NRA-endorsed insurance programs.
Lockton spokesman Dean Davison emailed a statement to press about the settlement, saying that “…It is our responsibility to ensure we are fully compliant…We believe this settlement is the best way to resolve these issues.”.
New York’s Department of Financial Services found that Lockton had issued approximately 680 Carry Guard policies to New York residents between April and November of 2017. But Carry Guard was not the only NRA-endorsed insurance program that Lockton dealt with. Between 2000 and March 2018 Lockton offered eleven NRA-related insurance programs.
Lockton is not the only one to come out of this in trouble, the NRA has a lot to answer for too. As it turns out, the policy was advertised by the NRA online and via traditional mail. Since the NRA does not have a license to advertise to conduct business in New York, those advertisements were unlawful as well.
Financial Services Superintendent Maria Vullo remarked in the emailed statement that “Today’s action is part of the Department’s continuing investigation into this matter to uphold and preserve the integrity of New York law,”.
We’ll just have to wait and see if any fines are brought against the NRA. An NRA spokesperson has said that they will continue to cooperate with the Department of Financial Services investigation.