The National Rifle Association (NRA) has agreed to stop insurance business in New York State within 5 years and will pay a fine of $2.5 million due to related charges.
According to Reuters, more than three months ago, New York State Attorney General Letitia James sued the National Rifle Association of the United States, accusing the organization of corruption and demanding its dissolution. The National Rifle Association of the United States sold 28,015 insurances to New Yorkers without qualifications and charged more than $1.8 million in related fees.
On the 18th, the New York State Department of Financial Services announced a settlement agreement. Linda Lacewell, director of the New York Department of Financial Services, said that the NRA brand program of the insurance brokerage company Lockton illegally provides insurance policyholders with criminal defense costs and insurance against the “intentional” use of firearms in shootings. She also accused the National Rifle Association of misleading gun collectors, dealers, coaches, clubs, etc., and retained 13.7% to 21.9% of the premiums they paid.
The National Rifle Association did not admit wrongdoing when it agreed to the settlement and stated that it, like many groups, relies on industry experts to promote products to members. The association’s lawyer William Brewer said in a statement that the New York Department of Financial Services’ investigation “started with a roar and ended with a whimper.”
