Insurance market Lloyd’s of London directed underwriters to end and withdraw from policies connected to the National Rifle Association.
The British company issued the directive last week after an investigation by New York state revealed the NRA’s business partners offering self-defense insurance policies had violated state law.
In a statement, Lloyd’s said after “very careful consideration” it opted to “direct underwriters in the market to terminate any existing programmes of this type and not to enter into any new ones.”
Lloyd’s cited regulatory activity by New York’s Department of Financial Services as reasoning for the changes. An investigation by the state’s DFS found that the companies involved in brokering and underwriting NRA Carry Guard insurance violated state law while selling policies.
As a result of the investigations, a subsidiary of Chubb Ltd agreed to pay a $1.3 million fine for operating without a license to sell insurance, and Lockton Affinity agreed to pay $7 million for failing to comply with state law and misrepresented its compliance record. Both companies also agreed to no longer sell Carry Guard or similar insurance in the state.
The NRA retaliated against the regulatory activity by filing suit against the state of New York and its governor, and another against Lockton. In both cases, the gun rights group alleges the investigatory findings were part of a conspiracy orchestrated by anti-gun groups.
Yet, both Chubb and Lockton previously announced they had cut ties with the NRA. Both companies said, following February’s school shooting in Parkland, Florida, that they would no longer be involved in the NRA’s insurance programs.