Nine Lloyd’s managing agents have agreed to pay $5mn to settle an investigation launched by the New York financial regulator earlier this year into the provision of insurance policies to the National Rifle Association (NRA).
Tokio Marine Kiln, Atrium, Meacock & Company, Canopius, Chaucer, Argo, AmTrust, Brit and Liberty are named in a consent order, which was published yesterday by the New York Department of Financial Services (NYDFS).
The insurers have admitted to providing excess insurance that provided defence cover not permitted under New York law, according to the order.
The carriers underwrote liability coverage for bodily injury or property damage caused by firearms beyond the use of reasonable force to protect persons or property, the order said.
The settlement comes after Lockton paid $7mn earlier this year to settle an investigation into its role in distributing NRA Carry Guard policies and Lloyd’s of London told syndicates to stop underwriting NRA programmes.
The covenant order issued yesterday does not relate to Carry Guard and the named managing agents did not participate in the NRA’s Carry Guard programme, The Insurance Insider understands.
The settlement with the regulator comes amid heightened scrutiny of insurance policies provided to the NRA, decried by critics as “murder insurance”.
At the time of the Locton settlement in May, New York State financial services superintendent Maria Vullo said she determined such policies were barred by law from being marketed or put in force in state.
The consent order ordered Lockton to stop its activities on behalf of the NRA’s insurance coverage and to pay a fine.
Later that month the Corporation of Lloyd’s said it had ordered syndicates to stop underwriting all NRA progammes following the launch of an investigation into the provision of such policies by the NYDFS.
Meanwhile, in August, the New Jersey regulator also launched an investigation into the NRA’s Carry Guard programme.
In September the Department of Insurance in California effectively banned coverage provided under the Carry Guard programme.
In a statement, a spokesman for Lloyd’s managing agent Canopius said: “We can confirm that we have entered into a consent order with the NYDFS regarding an insurance programme offered to members of the NRA by various Lloyd’s syndicates, including Canopius.
“This brings the matter to a close and we have no further comment to make,” the company added.
A Brit spokeperson said: “We can confirm that that we have entered into a consent order with the New York Department of Financial Services regarding an NRA insurance programme offered by various Lloyd’s syndicates, including Brit. This brings the matter to a close and we have no further comments to make.”
The majority of the managing agents involved had issued no public comment on the settlement by publication time.