The sale of illegal insurance policies branded by the National Rifle Association were banned in Washington state by the Office of the Insurance Commissioner.
Two companies involved in underwriting and selling the policies in the state are being fined, Insurance Commissioner Mike Kreidler said Tuesday.
Kreidler said Illinois Union Insurance Co. was ordered to stop underwriting the polices branded under the NRA as self-defense policies because they are illegal in the state and insure unlawful activity.
The company is being fined $102,000 for selling more than 800 of the illegal policies to consumers in Washington, Kreidler said.
The other company being fined is Lockton Affinity LLC.
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Kreidler said Lockton Affinity is the licensed insurance producer that sold the illegal policies on behalf of the NRA and is being fined $75,000.
“When it comes to insurance products associated with the NRA, it’s buyer beware. The attempt to insure a criminal act is a rip-off for consumers. The policies sold are deceptive and dishonest. I would be remiss as the state’s insurance regulator if I didn’t shut them down,” Kreidler said.
Kreidler said the policies “give upfront money to policyholders for covered costs and expenses related to criminal defense for gun owners, even if the insured subsequently pleads guilty to or is convicted of a crime.”
According to Washington state law, insurance that covers criminal activity is prohibited, the insurance commissioner said.
The companies must either agree to the terms of the fines or demand a hearing by Feb. 14, Kreidler said.
Cox Media Group
