August 4, 2018
Albany, NY

Governor Cuomo Launches National Effort Urging States Across the Country to Follow New York's Lead and Outlaw NRA-Branded "Carry Guard" Insurance Program if They Determine it Doesn't Already Violate Their Laws

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Governor Cuomo to the NRA: "If the NRA goes bankrupt because of the State of New York, they'll be in my thoughts and prayers. I'll see you in court."

 

Call to Action Follows NRA Lawsuit Claiming New York's Actions Will Put NRA Out of Business

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Governor Andrew M. Cuomo today launched a national effort urging states across the country to follow New York's lead and outlaw the NRA-branded "Carry Guard" insurance program if they determine it does not already violate their state laws. The Governor's call to action follows a State investigation that found the program illegal under New York State law, leading to penalties against insurance companies involved. New York will begin outreach to other states to support their efforts to outlaw the practice and hold insurers responsible. On Friday, New York State filed a motion to dismiss an NRA lawsuit against New York that suggested the State's actions were a threat to "the NRA's corporate existence and its advocacy mission."

 

"At a time when Washington has completely abdicated its responsibility to protect the American people, states must lead," Governor Cuomo said. "I am calling on states across the country to join New York to outlaw this absurd program that insures intentional criminal conduct. Every time there's a shooting, politicians and the NRA offer American families nothing more than thoughts and prayers. If the NRA goes bankrupt because of the State of New York, they'll be in my thoughts and prayers. I'll see you in court."

 

A Department of Financial Services investigation, which began in October 2017, found the NRA "Carry Guard" insurance program unlawfully provided liability insurance to gun owners for certain acts of intentional wrongdoing, and improperly provided insurance coverage for criminal defense costs for gun owners and their resident family members who may be charged with certain crimes involving a firearm.  The NRA, which does not have a license from DFS to conduct insurance business in New York, actively marketed and solicited for the "Carry Guard" program through a website, email, and direct mail, among other channels.

 

DFS entered into consent orders with a participating insurance company and insurance broker in May 2018 and is currently conducting an ongoing investigation into what the NRA knew, and how they were profiting from marketing this illegal product in New York State.  As part of the consent orders, the insurance company, Chubb, agreed to pay a $1.3 million penalty and stop underwriting these policies in New York. The broker/administrator, Lockton, agreed to pay $7 million for selling and marketing an illegal product in New York.

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