The United States Concealed Carry Association was fined $100,000 by the Washington State Department of Insurance. The violation was “selling unauthorized insurance that illegally covers defense costs for criminal shootings. ” USCCA also agreed to pay “$5,457 in unpaid premium taxes, penalties and interest. “
In a press release dated October 21st, Insurance Commissioner Mike Kreidler (D-WA) said:
“We made two things very clear to USCCA,” Kreidler said. “Insurers must be authorized to sell in our state, and policies can’t cover illegal activity. These law violations are fixable, if the company wishes to do business in Washington state.”
USCCA and other such plans only cover you for viable self-defense incidents and not “illegal activity”. Even though USCCA made this perfectly clear, the Department of Insurance contended that there was no mechanism to reclaim payments made to members who were later convicted of a crime.
Anti-gunners love to talk about “loopholes”. The only loophole I see here is one that allows bureaucrats to make regulations out of whole cloth.
On the authorization issue, Washington is probably correct. Selling insurance in a state does require a license from each individual state and the District of Columbia.
Kreidler’s press release notes that USCCA could possibly still do business in the state.
USCCA could sell insurance legally in Washington by changing its policies to not insure criminal activity, and either becoming a registered insurer or by placing insurance business through surplus lines brokers.
Earlier in the year, Kreidler and the Department of Insurance went after the NRA’s Carry Guard program.
Insurance Commissioner Mike Kreidler today banned the sale of illegal insurance policies branded by the National Rifle Association (NRA) and will fine two companies involved in underwriting and selling them in Washington state.
Kreidler ordered Illinois Union Insurance Co. to stop underwriting the policies, branded under the NRA as self-defense policies. They are illegal in Washington state because they insure unlawful activity.
Kreidler also seeks to fine the company $102,000 for selling 811 of the illegal policies to Washington state consumers.
Kreidler also seeks to fine Lockton Affinity L.L.C. $75,000. Lockton Affinity is the licensed insurance producer that sold the illegal policies on behalf of the NRA.
“When it comes to insurance products associated with the NRA, it’s buyer beware,” Kreidler said. “The attempt to insure a criminal act is a rip-off for consumers. The policies sold are deceptive and dishonest. I would be remiss as the state’s insurance regulator if I didn’t shut them down.”
Kreidler, 76, is in his fifth term as insurance commissioner. He is an optometrist by training. He served 16 years in the Washington House and Senate as well as one term in Congress. He lost re-election in 1994 after voting for the Clinton “assault weapons ban”.