{"id":30812,"date":"2020-11-19T01:27:56","date_gmt":"2020-11-19T01:27:56","guid":{"rendered":"https:\/\/onlygunsandmoney.com\/?p=30812"},"modified":"2020-11-19T01:28:00","modified_gmt":"2020-11-19T01:28:00","slug":"nra-settles-carryguard-debacle-with-ny-state","status":"publish","type":"post","link":"https:\/\/onlygunsandmoney.com\/?p=30812","title":{"rendered":"NRA Settles CarryGuard Debacle With NY State"},"content":{"rendered":"<div class='__iawmlf-post-loop-links' style='display:none;' data-iawmlf-post-links='[{&quot;id&quot;:4319,&quot;href&quot;:&quot;https:\\\/\\\/www.dfs.ny.gov\\\/reports_and_publications\\\/press_releases\\\/pr202011181&quot;,&quot;archived_href&quot;:&quot;&quot;,&quot;redirect_href&quot;:&quot;&quot;,&quot;checks&quot;:[],&quot;broken&quot;:false,&quot;last_checked&quot;:null,&quot;process&quot;:&quot;done&quot;},{&quot;id&quot;:4320,&quot;href&quot;:&quot;https:\\\/\\\/www.dfs.ny.gov\\\/reports_and_publications\\\/press_releases\\\/pr202002051&quot;,&quot;archived_href&quot;:&quot;&quot;,&quot;redirect_href&quot;:&quot;&quot;,&quot;checks&quot;:[],&quot;broken&quot;:false,&quot;last_checked&quot;:null,&quot;process&quot;:&quot;done&quot;}]'><\/div>\n<p>The National Rifle Association entered into a consent order with the New York State Department of Financial Services today. The Department of Financial Services had charged the NRA with violating New York insurance law with its CarryGuard program as well as with its affiliate insurance programs.<\/p>\n\n\n\n<p><strong><a href=\"https:\/\/www.dfs.ny.gov\/reports_and_publications\/press_releases\/pr202011181\" class=\"rank-math-link\" target=\"_blank\" rel=\"noopener\">From the NY DFS new release<\/a>:<\/strong><\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>Superintendent of Financial Services Linda A. Lacewell today announced that the New York State Department of Financial Services (DFS) has entered into a consent order with the National Rifle Association (NRA).\u00a0On\u00a0<a rel=\"noreferrer noopener\" class=\"rank-math-link\" href=\"https:\/\/www.dfs.ny.gov\/reports_and_publications\/press_releases\/pr202002051\" target=\"_blank\"><strong>February 5, 2020<\/strong>,<\/a>\u00a0DFS served a statement of charges and notice of hearing to the NRA\u00a0over violations of New York\u00a0Insurance\u00a0Law.\u00a0That\u00a0case is now resolved\u00a0by a\u00a0consent\u00a0order\u00a0that\u00a0includes a civil monetary penalty of $2.5 million for violations of New York\u00a0insurance\u00a0laws.\u00a0\u00a0<\/p><p>In addition, the NRA is banned from marketing insurance in the State or receiving compensation in connection with any newly issued New York insurance policies for five years, irrespective of whether the NRA obtains a license.\u00a0This brings to a close\u00a0a\u00a0three-year\u00a0investigation.\u00a0<\/p><p>In the consent order, DFS found that, despite lacking a license to conduct insurance business in New York, the NRA violated various\u00a0New York\u00a0insurance\u00a0laws and\u00a0regulations\u00a0by, among other things, acting as an insurance producer without a license in participating in efforts to solicit and market the sale of insurance products, including the NRA\u2019s Carry Guard insurance program.\u00a0<\/p><p>\u201cThe NRA operated as an unlicensed insurance producer and broke the New York Insurance Law by soliciting insurance products and receiving compensation,\u201d\u00a0<strong>said Superintendent Lacewell.<\/strong>\u00a0\u201cEven worse, the NRA violated the New York Insurance Law by soliciting dangerous and impermissible insurance products, including those within its Carry Guard program that purported to insure intentional acts and criminal defense costs. The Department will continue to protect the integrity of the insurance market for the purposes of safety and soundness and the good of all consumers.\u201d\u00a0<\/p><\/blockquote>\n\n\n\n<p>The CarryGuard program was rushed into the market under the management of former Executive Director of General Operations and former Chief of Staff Josh Powell. As I understand it, his predecessor Kyle Weaver, then Director of General Operations, was building the program out step by step which wasn&#8217;t fast enough for the powers that be. The thought behind the program was that the NRA had helped get shall-issue concealed carry introduced in many states. However, they saw groups like USCCA offering legal defense programs which the NRA saw as making money off their hard work and they wanted in on it.<\/p>\n\n\n\n<p>Then, Powell replaced Weaver and rushed the product to market with big fanfare at the NRA Annual Meeting in Atlanta. That rush has now cost the NRA $2.5 million it can ill afford to spend.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.dfs.ny.gov\/reports_and_publications\/press_releases\/pr202011181\" class=\"rank-math-link\" target=\"_blank\" rel=\"noopener\"><strong>In a story from Reuters<\/strong><\/a> on this consent order, NRA outside counsel William Brewer III tries to put a positive spin on it.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>The NRA has said it did not underwrite its insurance programs, and that like \u201ccountless\u201d affinity groups it relied on industry experts to market products to members.. It did not admit wrongdoing in agreeing to settle.<\/p><p>William Brewer, a lawyer for the NRA, said in a statement: \u201cThe DFS inquiry, which began with a roar, ends with a whimper.\u201d He said the settlement has no effect on other litigation pending between New York state and the NRA.<\/p><\/blockquote>\n\n\n\n<p>That story also has this from Superintendent Lacewell regarding the other insurance offered through the NRA.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>She also accused the NRA of misleading gun collectors, dealers, instructors, clubs and shows by promising coverage at the \u201clowest possible cost,\u201d when the group typically kept between 13.7% and 21.9% of premiums paid.<\/p><\/blockquote>\n\n\n\n<p><\/p>\n<div style=\"margin-top: 0px; margin-bottom: 0px;\" class=\"sharethis-inline-share-buttons\" ><\/div>","protected":false},"excerpt":{"rendered":"<p>The National Rifle Association entered into a consent order with the New York State Department of Financial Services today.&hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":1,"footnotes":""},"categories":[1],"tags":[263,265,311,26,5071],"class_list":["post-30812","post","type-post","status-publish","format-standard","hentry","category-uncategorized","tag-carryguard","tag-josh-powell","tag-new-york-state","tag-nra","tag-ny-dept-of-financial-services"],"_links":{"self":[{"href":"https:\/\/onlygunsandmoney.com\/index.php?rest_route=\/wp\/v2\/posts\/30812","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/onlygunsandmoney.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/onlygunsandmoney.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/onlygunsandmoney.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/onlygunsandmoney.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=30812"}],"version-history":[{"count":1,"href":"https:\/\/onlygunsandmoney.com\/index.php?rest_route=\/wp\/v2\/posts\/30812\/revisions"}],"predecessor-version":[{"id":30813,"href":"https:\/\/onlygunsandmoney.com\/index.php?rest_route=\/wp\/v2\/posts\/30812\/revisions\/30813"}],"wp:attachment":[{"href":"https:\/\/onlygunsandmoney.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=30812"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/onlygunsandmoney.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=30812"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/onlygunsandmoney.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=30812"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}