Filing Summary

This agreement between the insurance firm Lockton Companies (“Lockton”) and New York State memorializes a settlement between the parties with respect to the State’s investigation of the NRA Carry Guard product.  Lockton agrees to pay a monetary penalty of $7 million. (para. 41)

Key Points

• Lockton and the NRA offered an insurance program called “Carry Guard” to new and existing NRA members in New York from April to November 2017.  Promotional materials for Carry Guard indicated that Carry Guard was “created by the NRA.” (para. 5-6)
• Despite not possessing an insurance producer license, the Consent Decree states the NRA “nonetheless engaged in aggressive marketing of and solicitation for the Carry Guard Program.” (para. 14)
• Lockton served as the administrator of Carry Guard, carrying out functions such as marketing, binding the insurance, collecting and distributing premiums, and delivering policies to insureds. (para. 8)
• Separate and apart from Carry Guard, Lockton worked with the NRA on a variety of insurance products from 2000 – 2018, including Self-Defense Insurance, Firearms Insurance, Firearms Instructor Plus Liability Insurance, Gun Collector Insurance, among others. (para. 15)
• The Consent Decree indicates that the Carry Guard product violated New York State Insurance Law by providing coverage that may not be offered in the excess line market, specifically “(a) defense coverage in a criminal proceeding that is not permitted by law; (b) liability coverage for bodily injury or property damage expected or intended from the insured’s standpoint in an insurance policy limited to use of firearms and that was beyond the use of reasonable force to protect persons or property; and (c) coverage for expenses incurred by the insured for psychological counseling support.” (para 18)
• The NRA Retired Law Enforcement Officer Self-Defense Insurance Program, according to the Consent Decree, is similarly violative of New York State law. (para. 19)
• Lockton told the State that revenue to the NRA from the Carry Guard product and other NRA insurance programs in New York State totaled approximately $1.8 million. (para 25)
• Lockton agreed to full cooperation with the State in its ongoing investigation of the NRA. (para 48)