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Settlement comes three months after state attorney general sued to dissolve gun rights group, accusing it of widespread corruption
William Brewer, a lawyer for the NRA, said the settlement has no effect on other litigation pending between New York state and the NRA.
Photograph: Joshua Roberts/Reuters
The National Rifle Association agreed to a five-year suspension of its insurance business in New York state and will pay a $2.5m civil fine to settle charges it offered insurance to members without a license and concealed how it routinely kept some premiums for itself.
New York’s department of financial services announced the settlement on Wednesday, a little over three months after the state attorney general, Letitia James, sued to dissolve the NRA, the leading US gun rights group, accusing it of widespread corruption.
The settlement resolved charges over the NRA’s two-decade relationship with insurance broker Lockton Cos, including the sale of 28,015 policies to New Yorkers and the NRA’s receipt of more than $1.8m in associated royalties and fees.
Linda Lacewell, the state insurance superintendent, said Lockton’s NRA-branded “Carry Guard” program illegally offered policyholders coverage for criminal defense costs and the “intentional” use of firearms in shooting incidents.
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