Chubb, Lockton fined $8.3m for NRA-branded insurance

The New York State Department of Financial Services (DFS) has fined Chubb and Lockton a combined $8.3 million for underwriting an NRA- (National Rifle Association) branded insurance programme.

The underwriting of “Carry Guard” insurance violates New York insurance law, according to the official statement. “DFS investigation found that NRA ‘Carry Guard’ insurance programme unlawfully provided liability insurance to gun owners who may be charged with a crime involving firearms,” according to an official statement.

Financial Services Superintendent Maria Vullo said that Lockton and its affiliate Lockton Affinity have agreed to pay a $7 million fine as part of a consent order with the DFS for serving as the administrator of the NRA-branded “Carry Guard” insurance programme, through Lockton Affinity, in violation of New York Insurance Law.

A DFS investigation found that the NRA “Carry Guard” insurance programme unlawfully provided liability insurance to gun owners for certain acts of intentional wrongdoing, and improperly provided insurance coverage for criminal defence for any act of self-defence covered under the policy for gun owners and their resident family members who may be charged with a crime involving a firearm. The NRA, which does not have a license from DFS to conduct insurance business in New York, actively marketed and solicited for the “Carry Guard” programme through a website, email, and direct mail, among other channels, the DFS said.

DFS’s investigation found that Lockton issued 680 Carry Guard insurance policies to New York residents between April and November 2017. As administrator for the Carry Guard program, Lockton carried out such functions as marketing the insurance, binding the insurance, collecting and distributing premiums and delivering policies to insureds.

Similarly, Chubb and Chubb’s subsidiary, Illinois Union Insurance Company, have agreed to pay a $1.3 million fine as part of a consent order with the DFS for underwriting the NRA-branded “Carry Guard” insurance program, through Lockton Affinity, in violation of New York Insurance Law.

Make sure you are GDPR compliant and  confirm your email address to keep getting our daily emails

More of today's news

Low major losses boost Munich Re Q1 results

Buffett warns on cyber insurance risks

Hannover Re grows 18% in Q1

Sompo advances European expansion with Luxembourg unit

Hiscox grows 24% in Q1 as reinsurance, ILS expand

Munich Re grows 8% at April renewals

HDI unveils management board changes as Eicken departs

Aon reinsurance business grows 6% organically in Q1

Don't miss our insurtech email newsletter - sign up today