Ten Lloyd's underwriters have reached an agreement to pay $5 million to the New York State Department of Financial Services for underwriting National Rifle Association-branded firearms liability insurance programs.
The insurers will pay the civil monetary penalty within ten days of the consent order's execution.
The underwriters agreed not to issue or deliver any insurance policies in the state of New York that provide liability coverage for bodily injury or property damage from firearm use. They also agreed not to enter into any agreement or program with the NRA to underwrite or participate in any affinity-type insurance program that involves any line of insurance covering people or entities whose home state is New York.
The consent order, however, said that the NRA may buy insurance from the underwriters for the purpose of getting insurance for its corporate operations. Additionally, the insurers agreed to refund in full the insurance premiums for specific coverages canceled under the NRA programs.
Lloyd's, a trademark of Society of Lloyd's, withdrew from NRA insurance programs in May 2018 after the New York regulator fined Chubb Ltd. unit Illinois Union Insurance Co. and Lockton Cos. LLC and affiliate Lockton Affinity LLC $1.3 million and $7 million, respectively, for associating with the NRA-branded Carry Guard insurance program.