For Consumers

Illinois Union pays $102,000 fine for sale of illegal NRA-branded policies

Contact Public Affairs: 360-725-7055

February 20, 2019

OLYMPIA, Wash. – Illinois Union Insurance Co. has paid a $102,000 fine after Washington Insurance Commissioner Mike Kreidler’s ordered the company to cease underwriting self-defense policies branded by the National Rifle Association (NRA). 

After an investigation, Kreidler ordered Illinois Union in January to stop underwriting the illegal policies in the state because they insure unlawful activity. The company agreed in a consent order to pay the fine. 

The company sold 811 policies to Washington state consumers, marketed through the NRA’s Carry Guard program. The policies offered upfront money for covered costs and expenses related to criminal defense for gun owners, even if the insured subsequently pleads guilty to or is convicted of a crime.

Washington state law prohibits insurance that covers intentional criminal activity by the policyholder.

Illinois Union is a subsidiary of Chubb Ltd. Group and had previously indicated it would stop selling the liability policies nationwide in October 2019. As a result of Kreidler’s cease-and-desist order, Illinois Union immediately halted sales of the policies in Washington.  

Kreidler is also seeking to fine Lockton Affinity LLC $75,000. Lockton Affinity is the licensed insurance producer that sold the illegal policies on behalf of the NRA. The company requested an extension until early March to decide whether to agree to the terms of the $75,000 fine or demand a hearing to contest it. 

Fines assessed against insurance companies, agents and brokers are deposited in the state's general fund to pay for state services. 

Kreidler’s office publishes disciplinary orders against companies, agents and brokers. Consumers can also look up complaints against insurance companies. 

For an insurance question or complaint, contact Kreidler’s consumer advocates online or by phone at 800-562-6900.