NRA Carry Guard Investigation

Chubb Consent Decree with NYS DFS

May 7, 2018

Filing Summary

This agreement between the insurance firm Chubb Group Holdings Inc. (“Chubb”) and New York State memorializes a settlement between the parties with respect to the State’s investigation of the NRA Carry Guard product.  Chubb, who was the underwriter for the insurance product, agreed to pay a monetary penalty of $1.3 million. (para. 20)

Key Points

  • Chubb served as the underwriter of Carry Guard, “providing insurance to individuals who purchased Carry Guard insurance.” (para. 7)
  • The NRA offered 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 “engaged in aggressive marketing of and solicitation for the Carry Guard insurance program.” (para. 9)
  • 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 10)
  • Lockton agreed to full cooperation with the State in its ongoing investigation of the NRA. (para 27)