Washington Insurance Commissioner Mike Kreidler has banned the sale of illegal insurance policies that carry a National Rifle Association (NRA) brand. He has also issued a fine to two companies selling those policies.
A news release from the commissioner’s office said, “The policies were sold through the NRA’s Carry Guard program and give upfront money to policyholders for covered costs and expenses related to criminal defense for gun owners, even if the insured subsequently pleads guilty to or is convicted of a crime. Washington state law prohibits insurance that covers criminal activity.”
The two companies selling the policies are Illinois Union Insurance — a subsidiary of Chubb — and Lockton Affinity. Illinois Union was fined $102,000 for selling 811 policies and Lockton was tagged for $75,000.
“When it comes to insurance products associated with the NRA, it’s buyer beware,” Kreidler said. “The attempt to insure a criminal act is a rip-off for consumers. The policies sold are deceptive and dishonest. I would be remiss as the state’s insurance regulator if I didn’t shut them down.”
Kreidler said the 811 policies had premiums totaling $260,000. Of those, 255 were cancelled and no claims have been made in Washington State. He also noted Illinois Union has paid less than 1% in claims for every premium dollar in 2017 and 2018.
In April of last year, Kreidler told the NRA to stop selling four Carry Guard liability policies through its website. Those policies were sold by through NRA and the NRA did not have an insurance license.
Both companies have until February 14th to accept the fines or demand a hearing.
Source link: Washington Department of Insurance