NRA to suspend insurance business in New York, pay $2.5 million fine

The National Rifle Association has agreed to settle charges filed in New York connected to its insurance business.

The gun rights organization was accused of selling insurance to members without a license and regularly keeping premiums for itself without telling customers, Reuters reports. On Wednesday, New York's Department of Financial Services announced the NRA will suspend its insurance business in the state for five years and pay a $2.5 million fine.

State Insurance Superintendent Linda Lacewell said insurance broker Lockton Cos. promoted an NRA-branded program called Carry Guard, which illegally claimed to cover criminal defense costs and the "intentional" use of firearms in shootings, Reuters reports. The NRA also said it offered coverage at "the lowest possible cost," but kept between 13.7 percent and 21.9 percent of premiums paid.

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The NRA, which in agreeing to settle did not admit any wrongdoing, said it did not underwrite its insurance programs and had the products marketed by industry experts. "The DFS inquiry, which began with a roar, ends with a whimper," William Brewer, a lawyer for the NRA, said in a statement.

In August, New York Attorney General Letitia James (D) sued to dissolve the NRA, accusing the organization of widespread corruption. The insurance settlement does not affect other pending litigation between the NRA and New York state.