FOR THE RECORD
NRA Favorably Resolves Insurance Dispute with New York State Department of Financial Services
No NRA Money Used in Payment to State Regulator; NRA Remains Positioned to Pursue Legal Actions Against New York Governor Andrew Cuomo, Others
November 18, 2020 — The NRA announced today that it has successfully resolved an insurance investigation of the Association by the New York State Department of Financial Services (DFS), New York’s banking and insurance regulatory agency.
On November 17, 2020, the NRA entered into a settlement with the DFS relating to its affinity-insurance inquiry. The NRA resolved this matter without any admission by the Association of any misconduct on its part. Importantly, no NRA money is being used to fund the payment to DFS.
“We believe this agreement is a resounding win for the NRA and the members it serves,” says William A. Brewer III, counsel to the NRA. “The DFS inquiry, which began with a roar, ends with a whimper. Not a penny of NRA money will directly or indirectly fund this settlement, and the settlement has no adverse impact on the NRA’s legal cases in the State of New York. Those important cases are moving forward as planned.”
DFS launched an inquiry into Carry Guard and other affinity insurance programs in 2017. Then the State regulator sought to impose penalties in excess of $30 million.
As a Consent Order recognizes, the NRA relied upon insurance-industry experts to underwrite, sell and administer the insurance programs that were the basis of these proceedings. The settlement also signals the DFS’s withdrawal of unfair trade practices. The NRA notes that it supported certain insurance programs because gun owners wanted them, and never misled its members.
This agreement has no bearing on the Association’s ability to procure insurance for its own corporate operations.
Although this settlement resolves DFS’s claims against the NRA, the NRA’s claims against DFS – along with New York Governor Andrew Cuomo, former DFS Superintendent Maria Vullo, and New York Attorney General Letitia James – are unaffected. The Association will continue to advance these legal matters in the interest of its members and our Constitution.