Nov. 18 (UPI) -- The National Rifle Association on Wednesday agreed to pay $2.5 million and stop selling insurance in New York to resolve an investigation into whether it violated state insurance laws.
The NRA reached the agreement with the New York Department of Financial Services in which it will pay the fine and stop marketing insurance to its members in New York for five years in exchange for ending the three-year investigation.
"The NRA operated as an unlicensed insurance producer and broke the New York Insurance Law by soliciting insurance products and receiving compensation," DFS Superintendent Linda Lacewell said. "Even 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 DFS' investigation found the NRA earned commission on more than 28,000 sales of insurance products to New York members, despite not having a proper insurance license.
These sales included the organization's Carry Guard program, which pledged to cover legal fees and civil liability costs of policyholders involved in firearm-related incidents in which they claimed they acted in self defense, which was deemed unlawful in New York.
Between April 1, 2017, and Nov. 17, 2017, the NRA marketed and sold Carry Guard throughout the country, selling about 680 policies to New Yorkers.
William Brewer an attorney for the NRA issued a statement saying the DFS investigation "began with a roar" and "ends with a whimper."
"The consent order contains no admissions by the NRA and no NRA member money will fund this settlement," Brewer said.