NRA Sues N.Y. Governor Cuomo and Dept. of Financial Services

Recently the State of New York launched a campaign intended to force banks and insurance companies to stop doing business with gun industry companies. Both the N.Y. State Dept. of Financial Services (DFS) and the N.Y. State Controller’s office have tried to compel banks and insurers to abandon the gun/firearms industry. According to the N.Y. Daily News, “Gov. Cuomo’s administration is urging banks and insurance companies in New York to reconsider any ties they have to the gun industry”. (READ FULL Story)

Now the NRA is fighting back. On May 11, 2018, the NRA filed suit against New York Governor Andrew Cuomo, and the N.Y. State Dept. of Financial Services (DFS), alleging violations of the NRA’s First Amendment rights.

The Federal Court lawsuit claims that Cuomo, DFS Superintendent Maria T. Vullo, and DFS engaged in a “campaign of selective prosecution, backroom exhortations, and public threats” designed to coerce banks and insurance companies to withhold services from the NRA. The NRA argues that such tactics vastly overstep DFS’s regulatory mandate, and seek to suppress the speech of Second Amendment supporters and retaliate against the NRA and others for their political advocacy. The lawsuit seeks millions of dollars in damages to redress harms inflicted by the DFS campaign.

Among other things, the lawsuit cites a pair of “guidance” letters issued on April 19, 2018, by the DFS to the CEOs of banks and insurance companies doing business in New York. Styled as regulatory “risk management” advisories, the letters encourage institutions to “take prompt actions” to manage “reputational risk” posed by dealings with “gun promotion organizations.” The same day, Cuomo issued a press release in which Vullo directly urged “all insurance companies and banks doing business in New York” to “discontinue[] their arrangements with the NRA”.

The lawsuit claims that the “guidance” letters were accompanied by back-channel communications and targeted enforcement actions, which further reinforced the Cuomo administration’s message that it is bad business in New York to do business with the NRA.

The lawsuit explains that the DFS mandate — preceded by an “investigation” orchestrated by gun-control activists into insurance programs sponsored by the NRA — has already caused several insurance companies to sever relationships with the NRA and to plan to cancel the insurance policies of law-abiding New York consumers.

According to the complaint, the directive of Cuomo and Vullo has had its intended effect — to advance Cuomo’s longstanding opposition to gun-rights supporters and to distort insurance markets in the service of a political agenda.

The lawsuit says, “As a direct result of this coercion, multiple firms have succumbed to Defendants’ demands and entered into consent orders with DFS that compel them to terminate longstanding, beneficial business relationships with the NRA both in New York and elsewhere.”

On May 2, 2018 and May 7, 2018, Lockton Companies, LLC and Chubb Ltd., respectively, announced they will pay millions of dollars in fines to DFS and cease doing business with the NRA — for no other reason than many of the insurance programs with which they are associated carry the NRA brand. On May 9, 2018, Lloyd’s of London announced that it is directing insurance underwriters to terminate any existing partnerships [with the NRA].

[Editor’s NOTE: Over the past two weeks, we have observed that NRA websites no longer list Armscare Firearms Protection insurance of $2500.00 as a basic benefit of the NRA Annual Membership. Previously, when a person purchased an NRA Annual Membership, this would provide, at no extra cost, $2500 in firearms protection, subject to policy activation. We do NOT know whether the apparent elimination of this $2500 insurance benefit is related to the actions of the DFS in New York. We were informed by an insurance company representative that the “Free Armscare Insurance is gone” because the NRA program “did not comply with certain state insurance regulations”.]

The lawsuit explains that these outcomes are the culmination of years of political activism by Cuomo against the NRA and gun rights organizations. As recently as April 20, 2018, Cuomo called the NRA an “extremist organization” and urged New York companies “to revisit their ties to the NRA and consider their reputations…” In the face of such attacks, the NRA continues to educate the public about the Second Amendment, defend the NRA and its members against political and media attacks, and galvanize participation in the political process. The NRA claims that in response, Cuomo and DFS are taking actions to silence the organization.

Citing the Supreme Court’s landmark Bantam Books, Inc. v. Sullivan case, the lawsuit argues that “viewpoint discrimination applied through ‘threat[s] of invoking legal sanctions and other means of coercion, persuasion, and intimidation’ violates the Constitution where, as here, such measures chill protected First Amendment activities.”

Story based on Report from NRA-ILA.

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Tags: Banking Industry, First Amendment, Gov. Cuomo, New York, NRA Insurance, NRA Lawsuit