Kreidler fines USCCA $100,000 for illegal insurance sales, policies

[Flash]

https://www.insurance.wa.gov/news/kreid ... s-policies

OLYMPIA, Wash. – Insurance Commissioner Mike Kreidler has fined United States Concealed Carry Association, Inc., (USCCA) for violating Washington state laws by selling unauthorized insurance that illegally covers defense costs for criminal shootings.

“We made two things very clear to USCCA,” Kreidler said. “Insurers must be authorized to sell in our state, and policies can’t cover illegal activity. These law violations are fixable, if the company wishes to do business in Washington state.”

USCCA agreed to pay a $100,000 fine and $5,457 in unpaid premium taxes, penalties and interest and to continue not selling the insurance in Washington state. Fines assessed by Kreidler are deposited in the state's general fund to pay for state services.

USCCA sold insurance to 1,675 Washington state consumers from Dec. 1, 2018 through Jan. 30, 2019, collecting $241,000. USCCA has paid no claims in Washington state.

USCCA bundled the insurance product, called a protection plan, with membership in its association. The protection plan provides payments for criminal defense costs if a member is charged with a crime related to the intentional use of a firearm or other weapon. Washington state law doesn’t allow a person to buy insurance for their own intentional criminal activity.

Additionally, USCCA was illegally acting as an insurer. Insurance companies must be authorized to sell policies in Washington state, and their policies must be reviewed and approved by Kreidler’s office.

USCCA voluntarily stopped selling membership and the protection plan in Washington on Jan. 30, 2019.

The protection plan says it excludes coverage for “criminal acts” and only covers “acts of self-defense.” However, the policies had no mechanism to make sure that payments made to policyholders who were later convicted of a crime were repaid to the insurer.

USCCA could sell insurance legally in Washington by changing its policies to not insure criminal activity, and either becoming a registered insurer or by placing insurance business through surplus lines brokers.

In January 2019, Kreidler fined one insurer and one insurance agency $177,000 for selling 811 similar illegal liability policies in Washington state under the National Rifle Association’s Carry Guard program.

[Half Cocked]

From a post on a Washington State gun board:

Governor Jay Horses Ass, the State Attorney General, and the State Insurance Commissioner believe that concealed carry liability insurance is a license to kill, according to their alleged statements. This makes as much sense as claiming automobile liability insurance is a license to run people down with your vehicle.

[pneuby]

Not going to do you much good, anyway....

[Joe_Blacke]

Not going to do you much good, anyway....

This. Self-defense/carry insurance is a scam. For one it isn’t liability insurance, so if any civil damages are at play you are screwed. Any plan that doesn’t allow me to decide on which attorney I want, and control the defense strategy is worthless.

It’s big money though. It’s gotten to the point of almost being a pyramid scheme. If you get people to sign up, they will cut you in on the profits.

The actuaries know that there is such a ridiculously low chance of any of there insured will either be in a shooting or even charged that this is a license to print money. If people only did the math on the cost of their policies over multiple years, they would see it is a guaranteed loser. Would you pay $5k per decade on the .0001% chance that you might have to spend $80k on out of pocket lawyer fees over that time? I think the odds are similar to winning the lottery.

They have the psychology down though. People who train and prepare are somewhat self-convinced that they will be in a shooting. They way over estimate their actual odds. Profiting off their fear is easy.

[DM47]

From a post on a Washington State gun board:

Governor Jay Horses Ass, the State Attorney General, and the State Insurance Commissioner believe that concealed carry liability insurance is a license to kill, according to their alleged statements. This makes as much sense as claiming automobile liability insurance is a license to run people down with your vehicle.

Being wayyyyy too kind to Jackwagon Jay Inslime and AG Bohica Bob.