Updated 3/2/2020
2/6/2020
In 2019, the State of New York fined both Chubb and Lockton companies for underwriting and issuing insurance policies for the NRA to provide coverage for members using their weapons for self-defense. The state claimed that the policies violated laws against insuring intentional acts, and that the NRA was illegally acting as an insurance broker.
Now the state has charged the NRA with violating the state's insurance laws and acting as an unlicensed insurance broker in both marketing and endorsing its insurance program for gun owners. The NRA received compensatuion from the sale of these policies making its actions that of an insurance producer, which is requried to be licensed by the insurance department. The NRA has not and is not now licensed by the department in any capacity as a broker or producer. Also, many of the policies were placed in the excess market in violation of the state's excess lines regulations. The department is seeking to impose civil monetary penalties on the NRA for these violations.
On Friday February 28 the NRA sought a preliminary injunction against the stat's regulatory enforcement action. The NRA feels teh dispute should be heard in federal court rather than state court, and the insurance department sees this action as an attempt to distract from the state law violations. The NRA claims the insurance department's action was wielded selectively at the behest of Governor Cuomo in order to damage the NRA for political speech, as Governor Cuomo is critical of the NRA. The state maintains that the NRA violated state law by acting as an unlicensed insurance broker.