Filing Summary

This document contains the operative facts and allegations, as put forward by the New York State Department of Financial Services, against the NRA for its involvement in the Carry Guard insurance product.  In particular, the charging document alleges the NRA violated the insurance laws by operating as an insurance producer without a license, offering unlawful insurance coverage, and by misleading NRA members with “unfair and deceptive” claims about Carry Guard.

Key Points

• With respect to deceiving its own members, the State notes that “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.” (para. 8, 52-53)
• Further, the State alleges that “marketing materials relating to the NRA-endorsed insurance program wholly failed to disclose that the NRA was receiving royalties based on the amounts paid by its members.” (para. 8)
• The State details all the actions the NRA took, despite not possessing an insurance producer license, to market Carry Guard, including: (1) having Ackerman McQueen create and place commercials for the product, (2) sending promotional emails by Wayne LaPierre and Dana Loesch, (3) operating the website www.nracarryguard.com and promoting the product on www.nra.org, and (4) heavily promoting the program at the 2017 Carry Guard Expo and NRA Annual Meeting.  (para 39)
• “Pursuant to its written agreement with [insurance company] Lockton, the NRA was responsible for all costs of marketing the Carry Guard program.” (para 40)
• The State also notes that Carry Guard “provided insurance that may not legally be offered in New York State, specifically: (a) defensive 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 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 42)
• Separate and apart from Carry Guard, the State alleges that NRA solicited or aided its insurance partners in selling over 28,000 insurance policies in New York from 2000 – 2018. (para 44-45).  This was despite the fact the NRA did not possess an insurance license from the State.
• The charging document notes “the NRA was compensated handsomely for its participation in these insurance programs through royalties that were based on a percentage of the insurance premium paid by NRA members.”  With respect to just New York consumers, the State estimates the NRA received “more than $1.8 million from Lockton administered programs in royalties and administrative fees.” (para 49)