NY Agency Charges National Rifle Association With Violating State Insurance Laws
The action is the latest event in a long-running dispute between New York State officials and the gun rights advocacy group.
February 06, 2020 at 03:07 PM
3 minute read
The New York Department of Financial Services on Wednesday accused the National Rifle Association of violating state insurance laws, claiming the gun-rights advocacy group has received more than $1.8 million through its participation in insurance programs since 2000.
The action is the latest event in a long-running dispute between New York State officials and the gun rights advocacy group.
The NRA is accused of misleading marketing practices and acting as an insurance producer without a license, according to the DFS statement of charges. The group may owe civil penalties as high as $14 million, according to DFS.
In return for endorsing and marketing insurance programs to its members, the NRA received "royalties" that sometimes totaled more than 20% of its members' insurance premiums, according to the statement of charges.
Those royalty costs were passed on to NRA members, DFS claimed, so advertising language about the NRA obtaining the "lowest possible cost" was also deceptive.
"DFS alleges that the NRA misrepresented that the insurance offerings to its members was at the lowest cost possible, when in fact the NRA was taking for itself substantial royalties, sometimes more than 20 percent of the premiums paid," DFS said in a press release announcing the charges.
The lead attorney for the NRA said his group was the victim of political targeting.
William Brewer III, counsel to the NRA and managing partner of Brewer, Attorneys & Counselors, said the NRA has done nothing wrong and is, in fact, being targeted for political reasons to "weaken gun-rights advocacy in New York."
According to DFS, the NRA also deceptively offered an insurance program to concealed carry permit holders that claimed to cover criminal defense costs and other expenses associated with intentional use of the firearm. That's not a circumstance that New York insurance products can legally cover, according to DFS.
Brewer defended the group's actions in a statement Thursday.
"The NRA acted appropriately at all times," he said. "The NRA did not underwrite, sell, or administer any insurance programs, period."
The NRA acted like "countless other affinity groups" by relying on insurance experts to market products for its members, Brewer said.
"None of those other groups have been targeted by DFS — because this announcement is about politics, not protecting consumers," Brewer said.
In a statement, a DFS spokeswoman emphasized that the charges will be adjudicated impartially.
"These charges were investigated over the course of two DFS administrations by experienced former federal prosecutors and will be adjudicated on the merits through an impartial and balanced process," the statement said.
DFS scheduled a hearing in Manhattan for April 6. The agency has already reached settlements with several insurance companies named in the statement of charges, which resulted in millions of dollars in civil penalties, according to DFS.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllRetired Judge Susan Cacace Elected Westchester DA in Win for Democrats
In Eric Adams Case and Other Corruption Matters, Prosecutors Seem Bent on Pushing Boundaries of Their Already Awesome Power
5 minute readEric Adams Trial Set for April as Defense Urges Dismissal of Bribery Count
Major Drug Companies Agree to Pay $49.1 Million to 50 States, Territories
3 minute readTrending Stories
- 1Gibson Dunn Sued By Crypto Client After Lateral Hire Causes Conflict of Interest
- 2Trump's Solicitor General Expected to 'Flip' Prelogar's Positions at Supreme Court
- 3Pharmacy Lawyers See Promise in NY Regulator's Curbs on PBM Industry
- 4Outgoing USPTO Director Kathi Vidal: ‘We All Want the Country to Be in a Better Place’
- 5Supreme Court Will Review Constitutionality Of FCC's Universal Service Fund
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250