LLOYD’S UNDERWRITERS TO PAY $5M TO SETTLE CHARGES OVER NRA INSURANCE

Ten Lloyd’s underwriters have agreed to pay a $5m civil penalty to the New York Department of Financial Services to settle charges that they underwrote an improper firearm liability insurance programme for members of the National Rifle Association. Under the agreement, the underwriters are barred from writing any firearm liability policies in the state and from participating in any NRA affinity programmes. Last year, the DFS levied fines of $7m against against Lockton for serving as the NRA programme’s broker and $1.3m against Chubb for serving as an underwriter. New York regulators found that the NRA programme improperly provided cover for “intentional wrongdoing.”