The California Department of Insurance has issued a cease and desist order to the National Rifle Association, alleging that the NRA marketed an insurance product in California without a license.
In a statement announcing Tuesday’s order, the department noted that the NRA sponsors the Carry Guard Personal Firearms Liability, including Self-Defense Insurance Policy. According to the department, the product provides coverage for bodily injury or property damages that result from the legal use of a firearm.
Insurance Commissioner Dave Jones said, “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. 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.”
The order alleges that the NRA sent emails to mailing list subscribers featuring NRA spokesperson Dana Loesch and NRA CEO Wayne LaPierre explaining why the recipient should buy the policy and outlining policy specifics. “The insurance code prohibits a person from soliciting or negotiating insurance policies in California without valid license,” said the department. “The NRA has never held an insurance license in California.”
Last month, the state of New York filed a motion in federal court seeking to dismiss a suit by the NRA that alleged the state had violated the NRA’s First Amendment rights and threatening its existence by putting pressure on insurers and banks doing business with the group. The state had earlier determined that the Carry Guard program unlawfully provided liability insurance to gun owners.
This followed Lockton Cos. LLC’s agreement in May to pay $7 million to New York regulators to settle charges that the brokerage’s NRA-branded insurance program violated state law and breached excess and surplus lines placement rules. The New York State Department of Financial Services said the “Carry Guard” insurance program, which was administered by the brokerage’s Lockton Affinity LLC unit, unlawfully provided liability insurance to gun owners.
In February, Chubb Ltd. said it would no longer participate in the Carry Guard program.
“The NRA believes that it acted appropriately at all times,” William A. Brewer III, counsel for the NRA, said in an emailed statement. “The NRA has, since 2000, relied upon Lockton and its assurances that the insurance programs in question complied with all applicable state regulations. To the extent there are questions about Carry Guard and the marketing of the program, the NRA relied upon Lockton to administer the program and oversee its availability to California consumers.”
The CFO; Timmerman; took on the role of Chief Risk Officer and then this was revealed. A money laundering plot such as this would have taken multiple layers of people on the inside as well as a lack of internal controls. What were they thinking?
Who among us remembers the scandal begun by then AG Elliot Spitzer against Marsh and AiG? This was over the issue of “contingent commissions” and how they are paid. it was a nuisance affair and saw a few brokers facing life altering charges. I believe they were all exonerated.
from my perspective, after 30 plus years as a broker, I could never see the brokers favouring one insurer over another. The broker never received the profit commissions. these went to the company and was beyond our focus.
This however, this new issue about Russian financing is really disturbing. More to follow.
At any company, public or private, a “Succession Plan” is often in draft form at the accountants. Is that enough?
At Fiat/Chrysler, there were even 3 in house candidates for the CEO position when Serge Marchionne was planning on leaving in 2019. However he has suffered a health emergency and while at the hospital, he announced that he would not be returning.
And one of the 3 candidates was the COO but as he was not offered the CEO position he too gave his notice. Now 2 senior head office slots must be filled within the next 30 days.
On top of this, Serge Marchionne, is a baby boomer. For the past 14 years, he worked almost 7 days a week. His vision and drive created a company worth 10 times its’ previous value. He saw the merger with Chrysler occur in 2008 during the 2008 financial crash.
Who shows that kind of devotion and energy today? Do you see your successor in the office now? What are your plans?
As we saw during the merger of Lafarge/Holcim, where the parent company is being charged with war crimes and supporting a terrorist organization, accountants do not always see the subtle needs of a corporation.
As Canadians age, there are new issues to consider. Another 25 or 30 years post working full time? What does that mean?
Are the organs and the joints working properly? If not then what do we do? Well the cost to repair or replace any of these is staggering.
Please consider this the next time an outside investor comes to Canada and wants to develop one of our resources. If we don’t sell the oil or shale or natural gas now, health care will disappear as we know it today. Am just saying.
When health/benefits facilitators consider putting their client information onto a network, why are they not investigating the level of security on that network? What could go wrong? The data on individuals is extremely personal and valuable to criminals. These are people who can hold data for 10 years or more before using it.
Imagine telling 1,500,000 people that they immediately have to change their passwords on all of their systems and to watch for incorrect charges on their statements. Someone may have their identity no. or social insurance no. The cost to do this and to notify patients is in the millions of dollars.
Equifax comes to mind as well. Where is the Chief Risk Officer here?
For those who buy either Critical Illness or Long Term Disability Insurance policies which can be sold as stand alone policy forms, this is important.
Catastrophic illness like cancer, heart attack or stroke or any serious accident, immediately cause a loss of income. What if the loss of income is for an extended period of time. Is there an appropriate extension on the Group Plan through your employer? Does your partner have a policy that you are an “Additional Insured” upon? Offering Weekly Indemnity and Long Term Disability? For how long and what is the waiting period on each?
Some have a history of cancer or heart defects or the like. But will this happen to you? Well we must think of the worst possible scenario and only for those who depend upon us because they may become our primary care givers which causes more financial loss.
How does the provincial or state insurance plan help us? Will it address our immediate needs to allow for some long term planning? More and more people live longer and survive debilitating disease.