California has ordered the National Rifle Association to stop selling an unlicensed insurance policy to gun owners that covers legal costs, among other things, for damage or injury while using a gun.
California’s Department of Insurance issued a cease and desist order stating the gun lobby sold an unlicensed insurance product in the state. If violated, the NRA can be fined $5,000 a day.
The order is in reference to the Self-Defense Insurance Policy offered to members by NRA’S Carry Guard program. The policy covers the legal costs of criminal cases or lawsuits arising after a gun is used in self-defense, hunting, recreation or when a firearm is fired accidentally, , claims NRA.
The policy also states it provides “comprehensive training” and also covers damage from a firearm, air gun, bow and arrow or trapping equipment in an “act of self-defense” at gun clubs, hunting clubs or gun ranges.
The NRA did not state how it would confirm violence caused by a gun was “accidental” or done in “self-defense.”
The insurance premium ranges from $25,000 to $1 million, which include reimbursement of money related to criminal proceedings that do not end in a guilty verdict, the order added.
The state’s insurance code bars a person from marketing or negotiating insurance policies in California without a license. The NRA reportedly does not have a license to do so in the state. Despite that, as of July, around 2,400 Californian gun holders hold the policy, which gun control activist have labeled as “murder insurance.”
“The California Department of Insurance insists on full compliance with California law that requires persons soliciting the purchase of insurance in California must be appropriately licensed to do so,” said Commissioner Dave Jones. “Because the NRA allegedly failed to comply with this California legal requirement, it became necessary for the department to take this action against the NRA to end this illegal conduct in California.”
According to the order, NRA spokesperson Dana Loesch said in marketing emails that covered gun owners and their families could enjoy the “benefits” for “just pennies a day.”
The NRA claims it did nothing illegal and said it relies on insurance brokers who administer the policy to follow state regulations. Instead, their insurance broker, Lockton Cos., settled claims worth $7 million over illegally marketing the policy in New York, in May. Later, the NRA itself sued the broker after it said it would no longer provide the service to NRA-endorsed policies after the Parkland school shooting.
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