Fraud of the Week

October 21, 2019

Improper Coverage — Washington

Amount: $241,000

United States Concealed Carry Association, Inc., (USCCA) has been fined by Washington Insurance Commissioner Mike Kreidler for violating Washington laws by selling unauthorized insurance that illegally provides coverage for defense costs for criminal shootings. In the state of Washington, insurers must be authorized to sell insurance, and a policy cannot cover illegal activities. Between December 1, 2018 and January 30, 2019 USCCA sold insurance to 1,675 Washington state consumers. The insurance product that USCCA sold, called a protection plan, was bundled with membership in the USCCA association. The wording of the protection plan excluded coverage for "criminal acts" and provided coverage for "acts of self-defense" but had no mechanism in place to ensure that payments made to policyholders who were later convicted of a crime were repaid to USCCA. USCCA sold $241,000 worth of insurance during that two month period, and paid no claims in Washington State. USCCA agreed to pay a $100,000 fine and over $5,000 in unpaid premium taxes, and agreed to no longer sell insurance in Washington. If USCCA became a registered insurer and changed the policies to not insure criminal activities, they would be able to sell the insurance legally in Washington.