Department issues cease and desist order to NRA for marketing insurance without a license
News: 2018 Press Release
SACRAMENTO, Calif. — The California Department of Insurance (CDI) today issued a Cease and Desist Order to the National Rifle Association of America (NRA). The order alleges the NRA marketed an insurance product in California without being licensed to do so.
All persons soliciting the purchase of insurance products in California are required to be licensed by CDI. The NRA sponsors the Carry Guard Personal Firearms Liability Including Self-Defense Insurance Policy. This product provides coverage for bodily injury or property damages that result from the legal use of a firearm.
"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," said Insurance Commissioner Dave Jones. "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."
In the order, CDI alleges 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 a valid license. The NRA has never held an insurance license in California.
The NRA may request an administrative hearing to review the order.
Led by Insurance Commissioner Ricardo Lara, the California Department of Insurance is the consumer protection agency for the nation's largest insurance marketplace and safeguards all of the state’s consumers by fairly regulating the insurance industry. Under the Commissioner’s direction, the Department uses its authority to protect Californians from insurance rates that are excessive, inadequate, or unfairly discriminatory, oversee insurer solvency to pay claims, set standards for agents and broker licensing, perform market conduct reviews of insurance companies, resolve consumer complaints, and investigate and prosecute insurance fraud. Consumers are urged to call 1-800-927-4357 with any questions or contact us at www.insurance.ca.gov via webform or online chat. Non-media inquiries should be directed to the Consumer Hotline at 800-927-4357. Teletypewriter (TTY), please dial 800-482-4833.