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Jun 2018

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Lloyd's underwriters told to stop insurance linked to NRA

Source: Asia Insurance Review | Jun 2018

Global Property & Casualty Specialty People

Lloyd’s of London has said it will direct underwriters to terminate all insurance offered, marketed, endorsed or otherwise made available through the National Rifle Association (NRA) of America.
 
   The move came just two days after insurer Chubb was fined $1.3m over its role in an NRA insurance programme after an investigation found the NRA’s Carry Guard insurance programme unlawfully provided liability insurance “to gun owners for acts of intentional wrongdoing”.
 
   “The Lloyd’s Corporation has given very careful consideration as to whether syndicates at Lloyd’s should continue to insure programmes offered, marketed, endorsed or otherwise made available through the NRA.
 
   “This is now subject to an inquiry by the New York Department of Financial Services (NYDFS). Therefore, Lloyd’s Corporation has decided to direct underwriters in the market to terminate any existing programmes of this type and not to enter into any new ones,” a Lloyd’s spokesman said.
 
   Chubb paid its fine to New York State’s regulator, following an investigation by NYDFS. The Carry Guard insurance programme, underwritten by Chubb unit Illinois Union Insurance Company, also “improperly provided” legal services for policyholders who faced criminal charges after using their guns in self-defence, the regulator said.
 
   The settlement follows decisions by numerous companies to sever corporate partnerships the NRA.
 
   National debate has heated up over the issue of gun control, and the NRA’s role in opposing it, since February 14, when a former student killed 17 people at Marjory Stoneman Douglas High School in Parkland, Florida, using an AR-15 assault rifle he had purchased legally.
 
   In addition to the fine, Illinois Union agreed not to participate in the Carry Guard insurance programme, or any similar programme in New York, or to provide Carry Guard or similar policies to New York residents, regardless of where they are written, the DFS said.
 
   Illinois Union is also not allowed to issue policies for New York residents that provide legal services coverage in a civil or criminal proceeding.
 
   On 2 May, the New York regulator fined insurance broker Lockton $7m for serving as the Carry Guard programme administrator.
 
   In February, Chubb said it had given notice to the NRA late last year of its plan stop underwriting the Carry Guard programme.
 
   Lockton said in February it would no longer sell NRA-endorsed products.
 
   The NRA, on 7 May, sued Lockton in a US trial court in Alexandria, Virginia, saying it had breached its contract with the group. A 
 
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