NRA Carry Guard Investigation

Case Summary

The NRA’s Carry Guard insurance program, which promised to cover an individual’s legal expenses if they shot someone and claimed self-defense, was unveiled at the 2017 NRA convention with much fanfare but has subsequently become a regulatory debacle.

In February 2020, the New York State Department of Financial Services (DFS) formally charged the NRA with acting as an unlicensed insurance producer with respect to the Carry Guard insurance product.  These civil charges followed a multiyear investigation into the NRA’s insurance program that began, in 2017, when the Everytown for Gun Safety Support Fund, along with the volunteer network Mom’s Demand Action, conducted and shared with regulators an investigation and legal analysis of the NRA’s Carry Guard program.

Among other allegations, the state’s charging document states: Despite representing to its members that the NRA insurance programs were negotiated in order to obtain coverage ‘at the lowest possible cost’ to its members, it is clear that the NRA members could have negotiated less expensive coverage for its members but for the fact that a substantial portion of the premiums paid by NRA members — sometimes exceeding 20% — was being paid to the NRA in the form of royalties. Marketing materials relating to NRA-endorsed insurance programs wholly failed to disclose that the NRA was receiving royalties based on the amounts paid by its members.”

The proceedings with DFS promise to extend through 2020, costing the NRA even more.  Some of the NRA’s partners in this venture—Lockton Affinity, Illinois Union, and Lloyd’s of London—have already settled with regulators in New York State and/or Washington State for an aggregate of more than $13 million in fines. 

In a separate litigation, the NRA brought suit against DFS for various First Amendment claims (such as selective prosecution) in the federal court in the Northern District of New York.  The majority of that case has subsequently been dismissed by the court.  The filings on this page are a collection of significant filings from New York state court and the federal court in the Northern District of New York and settlement documents made public by DFS.

New York State Department of Financial Services Brings Charges Against NRA for Carry Guard Insurance Product

Timeline

October 25, 2017
Reporting reveals Everytown investigation of Carry Guard shared with the NYS Department of Financial Services
May 2, 2018
Lockton settles with NYS for NRA Carry Guard
May 7, 2018
Chubb settles with NYS for NRA Carry Guard
May 11, 2018
In an attempt to preempt New York's investigation into Carry Guard, the NRA sues New York
November 6, 2018
The bulk of the NRA’s claims against the State are thrown out
May 9, 2019
Additional parts of the NRA's case against NYS are thrown out
July 19, 2019
NRA ends Carry Guard insurance program.
February 4, 2020
NY Charges NRA for Carry Guard Product