NRA Settles New York Insurance Law Suit
In a year where it seems nothing is ever settled, the NRA’s battle with the State of New York Financial Services Department over insurance sales there has apparently come to a close. According to a release from the New York State Department of Financial Services, the state has entered into a consent order with the NRA.
According to that release, the case is resolved via a consent order that includes a civil monetary penalty of $2.5 million for violations of New York insurance laws. Under that agreement, the NRA is also banned from marketing insurance in the state or receiving any compensation in connection with any New York insurance policies for five years, even if the NRA obtains a license.
It’s important to note that there is no admission of wrongdoing by the NRA in the settlement.
In fact, on its NRA Legal Facts website the NRA says “no NRA money is being used to fund the payment to the Department of Financial Services.” And NRA counsel William A. Brewer III called the order “a resounding win for the NRA and the members it serves.”
The NRA Legal Website also points out the settlement has no bearing on the Association’s ability to procure insurance for its own corporate operations.
Win or not, the consent order states that, despite lacking a license to conduct insurance business in New York, the NRA violated various New York insurance laws and regulations by acting as an insurance producer without a license in participating in efforts to solicit and market the sale of insurance products, including the NRA’s Carry Guard insurance program. Read more