{"id":31343,"date":"2021-07-02T13:22:36","date_gmt":"2021-07-02T13:22:36","guid":{"rendered":"https:\/\/onlygunsandmoney.com\/?p=31343"},"modified":"2021-07-02T13:22:41","modified_gmt":"2021-07-02T13:22:41","slug":"is-wayne-lapierre-a-peril-or-a-hazard","status":"publish","type":"post","link":"https:\/\/onlygunsandmoney.com\/?p=31343","title":{"rendered":"Is Wayne LaPierre A Peril Or A Hazard?"},"content":{"rendered":"<div class='__iawmlf-post-loop-links' style='display:none;' data-iawmlf-post-links='[{&quot;id&quot;:3594,&quot;href&quot;:&quot;https:\\\/\\\/thereload.com\\\/nra-creates-fund-to-protect-directors-as-llyods-of-london-fails-to-renew-insurance&quot;,&quot;archived_href&quot;:&quot;&quot;,&quot;redirect_href&quot;:&quot;https:\\\/\\\/thereload.com\\\/nra-creates-fund-to-protect-directors-as-llyods-of-london-fails-to-renew-insurance\\\/&quot;,&quot;checks&quot;:[],&quot;broken&quot;:false,&quot;last_checked&quot;:null,&quot;process&quot;:&quot;done&quot;},{&quot;id&quot;:3708,&quot;href&quot;:&quot;https:\\\/\\\/thereload.com\\\/nra-quietly-moves-on-in-first-board-meeting-since-bankruptcy-failure&quot;,&quot;archived_href&quot;:&quot;&quot;,&quot;redirect_href&quot;:&quot;https:\\\/\\\/thereload.com\\\/nra-quietly-moves-on-in-first-board-meeting-since-bankruptcy-failure\\\/&quot;,&quot;checks&quot;:[],&quot;broken&quot;:false,&quot;last_checked&quot;:null,&quot;process&quot;:&quot;done&quot;},{&quot;id&quot;:3709,&quot;href&quot;:&quot;https:\\\/\\\/www.lloyds.com&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;:3710,&quot;href&quot;:&quot;https:\\\/\\\/thismatter.com\\\/money\\\/insurance\\\/risks-perils-hazards.htm&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;:3711,&quot;href&quot;:&quot;https:\\\/\\\/www.valuepenguin.com\\\/ho3-home-insurance&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;:3712,&quot;href&quot;:&quot;https:\\\/\\\/www.nytimes.com\\\/2021\\\/06\\\/26\\\/us\\\/miami-building-collapse-investigation.html&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;:3713,&quot;href&quot;:&quot;https:\\\/\\\/www.safegardgroup.com\\\/blog\\\/2017\\\/03\\\/08\\\/underwriting-considerations-insurance&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;:3714,&quot;href&quot;:&quot;https:\\\/\\\/taitnra.substack.com\\\/p\\\/lloyds-of-london-refuses-to-renew&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;:3715,&quot;href&quot;:&quot;https:\\\/\\\/www.pagunblog.com\\\/2021\\\/07\\\/01\\\/wayne-lapierre-a-bigger-risk-than-fire-and-brimstone&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>While I had heard rumors of Lloyd&#8217;s of London refusing to renew the NRA&#8217;s Directors and Officers insurance, <strong><a href=\"https:\/\/thereload.com\/nra-creates-fund-to-protect-directors-as-llyods-of-london-fails-to-renew-insurance\/\" target=\"_blank\" rel=\"noreferrer noopener\">Stephen Gutowski of The Reload<\/a><\/strong> confirmed it yesterday morning. He noted that in this past weekend&#8217;s Board of Directors meeting, they voted to create a $5 million fund to cover the board and executives as they search for a new policy. <\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>NRA board member Phillip Journey told\u00a0<em>The Reload<\/em>\u00a0the fund was announced during the closed executive session of\u00a0<a href=\"https:\/\/thereload.com\/nra-quietly-moves-on-in-first-board-meeting-since-bankruptcy-failure\/\" target=\"_blank\" rel=\"noopener\">the gun group\u2019s Saturday board meeting<\/a>. He said board members were authorized to talk about it after the session ended, though. He believes the fund was created to alleviate concerns about liability raised by a number of board members.<\/p><p>\u201cIt was apparent from the comments that there are several board members that have expressed concerns,\u201d Journey said. \u201cThis was their attempt to address the concern, knowing that the policy expires in, golly, less than 40 days.\u201d<\/p><p>Lloyd\u2019s did not respond to a request for comment. The elite business group has a reputation for insuring high-risk clients, and Journey said its decision not to renew the NRA\u2019s policy is bad news.<\/p><p><strong>\u201cI mean, if Lloyd\u2019s won\u2019t insure you, who the hell will?\u201d he said.<\/strong><\/p><\/blockquote>\n\n\n\n<p>Judge Journey is correct. <strong><a href=\"https:\/\/www.lloyds.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">Lloyd&#8217;s of London<\/a><\/strong> will insure and reinsure risks that traditional insurance companies will refuse to cover. It should be noted that Lloyd&#8217;s is not a company but a marketplace that brings together investors, underwriters, brokers, and insurance companies.<\/p>\n\n\n\n<p>I taught insurance and financial planning at Western Carolina University as an adjunct instructor for a decade. One of the topics we covered was risk management and ways to mitigate it. Insurance is the proper tool to use when the severity of the loss is high and the likelihood of an occurrence is low. It is properly termed &#8220;risk transfer&#8221;. <\/p>\n\n\n\n<p>Without getting too deep into the weeds, there are a few <strong><a href=\"https:\/\/thismatter.com\/money\/insurance\/risks-perils-hazards.htm\" target=\"_blank\" rel=\"noreferrer noopener\">definitions that need to be clarified when speaking of insurance.<\/a><\/strong> First, risk is the probability or chance of a loss. In the NRA&#8217;s case, I am speculating the underwriters calculated that the probability of a loss or claim against the directors and officers for failing to do their fiduciary duty was rather high.<\/p>\n\n\n\n<p>Going further, peril is the direct cause of a loss while a hazard is something that either causes or increases the likelihood of a loss. If you have a<strong><a href=\"https:\/\/www.valuepenguin.com\/ho3-home-insurance\" target=\"_blank\" rel=\"noreferrer noopener\"> homeowner&#8217;s policy<\/a><\/strong> you will see these terms on it. Looking at the recent <strong><a href=\"https:\/\/www.nytimes.com\/2021\/06\/26\/us\/miami-building-collapse-investigation.html\" target=\"_blank\" rel=\"noreferrer noopener\">condo collapse<\/a><\/strong> in Dade County, the collapse was the peril while the deteriorating concrete was the hazard. In terms of the NRA, you could say that Wayne LaPierre&#8217;s grifting behavior is the peril and that the Board of Directors acquiescence in letting Wayne do anything he wants is the hazard.<\/p>\n\n\n\n<p><strong><a href=\"https:\/\/www.safegardgroup.com\/blog\/2017\/03\/08\/underwriting-considerations-insurance\/\" target=\"_blank\" rel=\"noreferrer noopener\">A couple of the major considerations in underwriting D&amp;O insurance<\/a><\/strong> are recent legal actions alleging violation of federal or state law and involvement in bankruptcy proceedings. The NY Attorney General&#8217;s lawsuit to dissolve the NRA and hold Wayne and others personally responsible fits that bill as does the abortive attempt to use bankruptcy to evade New York&#8217;s enforcement authority. When you add that to the Board&#8217;s seeming unwillingness to do its fiduciary duty, it is no wonder that the underwriters at Lloyd&#8217;s said nope.<\/p>\n\n\n\n<p>As a result, the NRA will self-insure as noted in the article from The Reload. Frank Tait, who is running for the Board, has an <strong><a href=\"https:\/\/taitnra.substack.com\/p\/lloyds-of-london-refuses-to-renew\" target=\"_blank\" rel=\"noreferrer noopener\">excellent look at what self-insuring or setting up a captive insurance company would mean for the NRA<\/a><\/strong>. <\/p>\n\n\n\n<p><strong><a href=\"https:\/\/www.pagunblog.com\/2021\/07\/01\/wayne-lapierre-a-bigger-risk-than-fire-and-brimstone\/\" target=\"_blank\" rel=\"noreferrer noopener\">A more humorous look at this whole debacle comes from Bitter at Shall Not Be Questioned<\/a><\/strong>. She notes that Wayne is a bigger risk than fire and brimstone. Lloyd&#8217;s is willing to insure the Hawaii neighborhood that sits on top of an active volcano but is not willing to insure the NRA&#8217;s directors and officers. At least with the volcano you know the extent of the losses.<\/p>\n\n\n\n<p>So to answer the question posed in the headline, I think you could say that Wayne is the peril and his continuing presence at the top of the NRA is the hazard. Dumping the Gang of Four of Wayne, Carolyn, Charles, and Willes won&#8217;t cure the NRA&#8217;s problems but it would be a step in the right direction.<\/p>\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>While I had heard rumors of Lloyd&#8217;s of London refusing to renew the NRA&#8217;s Directors and Officers insurance, Stephen&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":4,"footnotes":""},"categories":[1],"tags":[5713,5715,5714,26,12,5716,27],"class_list":["post-31343","post","type-post","status-publish","format-standard","hentry","category-uncategorized","tag-do-insurance","tag-insurance-principles","tag-lloyds-of-london","tag-nra","tag-nra-board-of-directors","tag-risk-management","tag-wayne-lapierre"],"_links":{"self":[{"href":"https:\/\/onlygunsandmoney.com\/index.php?rest_route=\/wp\/v2\/posts\/31343","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=31343"}],"version-history":[{"count":2,"href":"https:\/\/onlygunsandmoney.com\/index.php?rest_route=\/wp\/v2\/posts\/31343\/revisions"}],"predecessor-version":[{"id":31345,"href":"https:\/\/onlygunsandmoney.com\/index.php?rest_route=\/wp\/v2\/posts\/31343\/revisions\/31345"}],"wp:attachment":[{"href":"https:\/\/onlygunsandmoney.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=31343"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/onlygunsandmoney.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=31343"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/onlygunsandmoney.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=31343"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}