Carry Guard Insurance: Legal Or Not?

The National Rifle Association's (NRA) Carry Guard insurance program was deemed illegal in Washington state and New York. Carry Guard was an NRA-branded insurance program that offered liability coverage to people who fire a gun and was branded as a self-defense policy. The program was marketed and distributed by Lockton, the world's largest privately held insurance brokerage, and underwritten by the insurance giant Chubb.

In Washington state, insurance commissioner Mike Kreidler banned the sale of Carry Guard insurance and fined two companies involved in underwriting and selling them. He argued that the policies were illegal because they insured unlawful activity, and the attempt to insure a criminal act was a rip-off for consumers.

Similarly, in New York, the Department of Financial Services deemed Carry Guard's offerings improper as insurers are prohibited from providing defence coverage for criminal actions in the state. Lockton agreed to pay New York $7 million in fines and terminate Carry Guard policies held by New Yorkers.

Carry Guard was a personal firearms liability insurance product

Carry Guard was marketed as a self-defence policy that would provide upfront money to policyholders for covered costs and expenses related to criminal defence, even if the insured later pleaded guilty to or was convicted of a crime. The NRA promoted Carry Guard through email marketing featuring spokesperson Dana Loesch and NRA CEO Wayne LaPierre.

Carry Guard was deemed illegal in Washington state and New York. In Washington, insurance that covers criminal activity is prohibited by law. In New York, insurers are prohibited from providing defence coverage for criminal actions.

As a result of these investigations, the NRA stopped offering Carry Guard insurance products in 2019.

The NRA was soliciting sales of Carry Guard without a license

In 2019, the National Rifle Association (NRA) agreed to stop soliciting sales of Carry Guard insurance without a license. This came after the California Department of Insurance issued a Cease and Desist Order (C&D) in September 2018, in response to a consumer inquiry and subsequent department investigation. The investigation revealed that the NRA was transacting or selling insurance without a license or certificate of authority issued by the insurance commissioner, which violated the California Insurance Code.

The NRA was found to be soliciting sales of Carry Guard, a personal firearms liability insurance product that provides coverage for bodily injury or property damage resulting from the legal use of a firearm in self-defense. The NRA sponsored Carry Guard and received a fee for the use of its name and trademarks from the licensed broker responsible for selling the policy.

To promote the product, the NRA used email marketing featuring spokesperson Dana Loesch and NRA CEO Wayne LaPierre. In one such email from 2017, LaPierre urged recipients to "sign up for NRA Carry Guard today!" and to "close this critical gap in your insurance coverage today".

As the NRA has never held a valid insurance license, its marketing practices and messages were deemed clear violations of California Insurance Code section 1631, as cited in the department's Cease and Desist Order.

Following the order, the NRA made significant changes to its website and member communication materials to ensure compliance with the California Insurance Code and department requirements. These changes included removing all references to insurance coverage from the Carry Guard website, direct mail, and email materials, except for a banner advertisement from a licensed broker indicating the availability of insurance coverage, which redirects consumers to the broker's website.

The NRA's agreement to stop soliciting insurance without a license and its implementation of the required changes affirmed that the organization would no longer violate California law by negotiating insurance without the proper license and oversight.

Carry Guard was deemed illegal in Washington state and New York

The NRA's Carry Guard insurance was deemed illegal in Washington state and New York because the NRA was selling insurance without a license. The NRA did not hold a valid insurance license, and therefore, their marketing practices and messages were clear violations of the states' respective insurance codes.

In Washington, the NRA's promotion of Carry Guard insurance was found to be in violation of the state's insurance code, which requires that only a licensed broker may sell insurance policies. As a result, the NRA agreed to stop soliciting insurance in the state and made changes to its website and marketing materials to comply with the law.

Similarly, in New York, the NRA was found to be in violation of the state's insurance code by transacting or selling insurance without a license. The NRA's Carry Guard insurance was deemed unlawful, and the organization was ordered to cease and desist from selling insurance in the state.

It is important to note that the NRA's agreement to stop selling insurance in these states does not mean that concealed carry insurance is illegal in Washington or New York. However, residents of these states should be aware of the specific laws and regulations regarding the sale and purchase of insurance, including concealed carry insurance, to ensure compliance with the law.

Carry Guard was underwritten by the insurance giant Chubb

The NRA's Carry Guard insurance was underwritten by the insurance giant Chubb. Carry Guard was launched in the spring of 2017 and was marketed and distributed by Lockton Affinity, the world's largest privately held insurance brokerage.

Carry Guard was a multitiered insurance program that offered policies with up to $150,000 in criminal-defence reimbursement and $1 million in civil liability protection. The rates ranged from $13.95 a month for up to $250,000 in civil protection and $50,000 in criminal defence to a "gold plus" policy that cost $49.95 a month and provided up to $1.5 million in civil protection and $250,000 in criminal defence.

In 2019, the NRA agreed to stop soliciting insurance without a license and made significant changes to its website and member communication materials to address the allegations made in a 2018 Cease and Desist Order issued by the California Department of Insurance.

Following the mass shooting in Parkland, Florida, Chubb disclosed that it had decided not to renew its contract to underwrite Carry Guard. Lockton also stated its intention to no longer act as a broker and administrator. The NRA confirmed that no new policies would be issued through Carry Guard, but said it planned to launch a new insurance product in the future.

Carry Guard was marketed and distributed by Lockton

The NRA's Carry Guard insurance was marketed and distributed by Lockton Affinity, LLC, the world's largest privately held insurance brokerage. The insurance was underwritten by Illinois Union Insurance Company, a subsidiary of the insurance giant Chubb.

In 2019, the NRA agreed to stop soliciting insurance without a license and made changes to its website and member communication materials to address the allegations made in a 2018 Cease and Desist Order issued by the California Department of Insurance. The Department had found that the NRA was transacting or selling insurance without a license, which violated the California Insurance Code.

The NRA had been using email marketing featuring spokesperson Dana Loesch and NRA CEO Wayne LaPierre to promote the product, explaining coverage details and urging the target audience to buy the insurance coverage. In one such 2017 marketing email, LaPierre asked the recipient to "sign up for NRA Carry Guard today!" and urged them to "close this critical gap in your insurance coverage today, and I look forward to hearing that you've secured this important protection for you and your family."

Following the mass shooting in Parkland, Florida, Chubb disclosed that it had decided not to renew its contract to underwrite Carry Guard. Lockton also stated its intention to no longer act as broker and administrator.

Carry Guard quickly drew the attention of state regulators. In New York, the Department of Financial Services deemed Carry Guard's offerings improper as insurers are prohibited from providing defence coverage for criminal actions in the state. State financial regulators also said that the NRA had marketed the program without a license to do so. Lockton agreed to pay New York $7 million for the violations and terminate Carry Guard policies held by New Yorkers.

In Washington state, insurance commissioner Mike Kreidler banned the sale of Carry Guard policies and sought fines from the NRA, Illinois Union Insurance Company, and Lockton Affinity L.L.C. for selling illegal insurance policies in the state. Kreidler argued that the policies were illegal because they insured unlawful activity, as Washington state law prohibits insurance that covers criminal activity.

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