Friday, May 4, 2018

NRA Insurance Scuttled by NY Regulators

More BS~ 

NRA-Branded Insurance Program Is Unlawful, New York Regulators Say

Lockton fined $7 Million by Department of Financial Services
Company said in February it would end NRA brokerage service
A National Rifle Association-branded insurance program unlawfully provided liability coverage to gun owners in the event they were charged with a crime involving their firearms, according to New York state regulators.
Lockton Cos., which administered the insurance, and an affiliate were fined $7 million by New York’s Department of Financial Services and will no longer participate in the NRA’s “Carry Guard” program in the state of New York, the agency said in a statement Wednesday.
Lockton said it will continue to cooperate with regulators. The company announced after the Parkland, Florida, school shooting in February that it would stop providing brokerage services for all NRA-endorsed insurance programs.
“It is our responsibility to ensure we are fully compliant,” company spokesman Dean Davison said in an emailed statement. “We believe this settlement is the best way to resolve these issues.” 
The NRA acted appropriately at all times and relied on Lockton and its assurances that the program complied with state regulations, according to William Brewer, a lawyer for the NRA.
Firearms Insurance
The group advertises Carry Guard as the nation’s “most complete self-defense membership program” on its website, referring to Lockton’s plan as “comprehensive personal firearms liability insurance.” Regulators said the insurance unlawfully offered protection for certain acts of intentional wrongdoing and improperly provided coverage for acts of self defense. Gun control advocates have criticized the program, referring to it as “murder insurance.”
Lockton issued 680 Carry Guard policies to New York residents between April and November of last year, the DFS determined. Between 2000 and March 2018, Lockton and the NRA offered at least 11 other insurance programs. The company collected $12 million in premiums and $785,460 in administrative fees related to these programs during that time, according to the DFS. 
An investigation by the DFS found the program was actively advertised in New York by the NRA both online and through traditional mail. The firearms lobby doesn’t have a license to conduct insurance business in New York, according to the DFS, which oversees insurers and banks chartered in the state.
“Today’s action is part of the Department’s continuing investigation into this matter to uphold and preserve the integrity of New York law,” Financial Services Superintendent Maria Vullo said in the DFS statement.  
The NRA said it will continue to cooperate with DFS.

U.S. judge approves gun maker Remington's bankruptcy plan
NEW YORK (Reuters) - Weapons manufacturer Remington Outdoor Company Inc won approval for its bankruptcy plan on Wednesday, paving the way for the company to slash debt, boost its cash position and better weather the uncertain climate for firearms in the United States.
Remington filed for bankruptcy in March with a deal in hand to cut its debt by about $775 million, a little more than one month after a school shooting in Parkland, Florida.
The shooting sparked protests and a wave of retailers and corporations to limit sales and transactions relating to firearms. Mass discounter Walmart Inc (WMT.N), which Remington is reliant on for sales, said it would stop selling guns to people under 21 years old.
Remington will exit bankruptcy as soon as this month, with some of its creditors, including JPMorgan Chase & Co(JPM.N) and Franklin Advisors, taking ownership stakes in the company in exchange for forgiving debt. Cerberus Capital Management L.P., Remington’s current private equity owner, will give up its equity in the restructuring.
The company confirmed in a statement that its expects to emerge from bankruptcy before the end of May.
Remington will then have a new Asset Based Loan (ABL) facility of $193 million, the proceeds of which will refinance the existing ABL facility in full.
“I’m satisfied there’s sufficient creditor support to win confirmation,” Judge Brendan Shannon said in U.S. Bankruptcy Court for the District of Delaware. Remington filed a so-called pre-packaged bankruptcy, meaning it had largely won the support of its creditors before it filed in court.
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Remington’s creditor committee, composed of a representative for its pension and plaintiffs in cases against the company for gun injuries and deaths, supported the bankruptcy plan, an attorney for the group told Shannon.
“I want to especially thank our dedicated employees spread across the United States that have remained focused on Remington throughout this process” said Chief Executive Anthony Acitelli.
The company’s bankruptcy plan allows for lawsuits against it to continue, including one filed by the families of the victims of the Sandy Hook, Connecticut, school shooting. One of its rifles was used in the 2012 shooting.
Gun sales fell after President Donald Trump was elected because firearm enthusiasts were no longer worried about increased regulation. That dynamic led in part to Remington’s bankruptcy filing.

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