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Washington considers legal action against NRA over branded insurance programme

'I am extremely concerned the NRA continues to promote what appears to be a misleading product'

Kimberley Richards
New York
Thursday 09 August 2018 18:03 BST
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NRA spokesperson Dana Loesch
NRA spokesperson Dana Loesch

Washington state insurance commissioner Mike Kreidler is considering whether to take additional legal action against a NRA-branded insurance policy programme.

The state’s new investigation into the NRA’s Carry Guard programme, which offers liability insurance for gun owners, comes after New York governor Andrew Cuomo sent a letter to other state governors earlier this week, urging them to investigate whether the NRA’s Carry Guard programme is being sold illegally in their respective states – and to block the sale of products if so.

Mr Kreidler had already ordered a cease and desist for four of the NRA Carry Guard liability insurance products found to be in violation of state law back in April. The state insurance commissioner said in a press release that the new investigation resulted from concerns the NRA was still promoting misleading products.

“I am extremely concerned that the NRA continues to promote what appears to be a misleading product that may not provide consumers the protection it promises,” Mr Kreidler said. “Consumers deserve to understand what they’re buying. If they’re being misled, I will take immediate action to protect them.”

Mr Cuomo launched a national effort to urge states to outlaw the Carry Guard programme after an investigation found the programme to be illegal under New York state law. The state subsequently issued penalties against insurance companies involved with the programme.

The NRA filed a lawsuit in May and amended in July, alleging Mr Cuomo’s actions have caused the organisation tens of millions of dollars in damages. The governor filed a motion to dismiss earlier this month calling the suit “frivolous”.

"Too bad," Mr Cuomo said in response to the lawsuit on CNN. "You violated the law, and it's not a defence to say, 'Well, I was committing illegal activity, but I was making money from it, and now I'm upset that I lost the revenue.'"

In a statement sent to The Independent, William Brewer, an NRA lawyer, said Washington state's announcement came as a "total surprise".

"As the NRA has previously stated, it acted appropriately at all times," Mr Brewer said. "The NRA has, since 2000, relied upon Lockton and its assurances that the insurance programmes in question complied with all applicable state regulations. To the extent there are questions about Carry Guard being sold as a lawful self-defence insurance program, the NRA relied upon Lockton to administer the program and oversee its availability to Washington consumers.”

Mr Brewer added that the NRA had made changes to the Carry Guard programme after corresponding with the Mr Kreidler's office last year. He claimed they were "assured by the Commissioner’s staff that the program complies fully with the laws and regulations of the State of Washington". "Nonetheless, the NRA will continue to cooperate with all lawful inquiries."

Washington state's governor, Jay Inslee, and Attorney General Bob Ferguson, issued a statement in support of Mr Kreidler’s investigation this week.

“The NRA is advertising potentially misleading and illegal insurance in Washington state, and we are glad that Insurance Commissioner Mike Kreidler is considering action to protect our families and our communities,” the statement read.

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