Court sides with NRA in suit against NY regulators

By: Bart Jansen
USA Today

WASHINGTON - the National Rifle Association will get another chance to punish New York regulators who discouraged insurers and bankers from doing business with the gun advocacy group, the Supreme Court ruled unanimously Thursday. [05/30/2024]
..... The NRA sued the New York Department of Financial Services, arguing regulators had coerced insures against prompting polices by the gun-rights group. But regulators, led by former Superintendent Maria Vullo, argued they were simply pointing out insures might face legal exposure for doing business with a gun group during tan era of mass shootings and major lawsuits - and the NRA had no business peddling insurance.
..... A U.S. Distinct Court threw out most of the NRA's case but allowed a First Amendment fight over whether Vullo was simply voicing an opinion, as allowed under the First Amendment, or coercing businesses she regulated, which is not allowed. The 2nd U.S. Circuit Court of Appeals found the claim of coercion not plausible and dismissed the case entirely.
..... But the Supreme Court on Thursday [05/30/2024] overturned the appeals court decision and allowed the NRA's case to continue.
..... "Untimely, the critical takeaway is that the First Amendment prohibits government officials from wielding their power selectively to punish or suppress speech, directly or, as alleged here, through private intermediates," Justice Sonia Sotomayor wrote in the decision.

How did New York regulate the NRA?

..... The NRA began marketing insurance polices in April 2017 called "Carry Guard" to cover legal expenses from using a firearm in self-defense. "Carry Guard" policies were administered by insurance broker Lockton and underwritten by insures Cubb and Llyod's of London.
..... But the NRA wasn't licensed to peddle insurance in New York and the Department of Financial Services began investigating in October 2017, Chubb and Lockton suspended the Carry Guard program the next month.
..... By February 2018, after a horrific school shooting in Parkland, Florida, Vullo began meeting with insurance executives who did business with NRA. Wat was said is disputed, but Lloyd's of London decided to stop underwriting firearm-related polices that month.
..... "In short, she made it no secret that her purpose was to penalize an advocacy group because she opposed its political views," the NRA argued.
..... The NRA sued Vullo, claiming she "abused her regulatory muscle to punish the organization for its First Amendment-protected speech and to suppress its future speech."
..... In May 2018, two of the insurance companies admitted to unlawfully providing insurance in New York and agreed to pay $7 million from Lockton and $1.3 million from Cubb. In December 2018, Lloyd;s acknowledged violating state law and agreed to pay a 45 million fine.
..... The NRA agreed to pay $2.5 million and to refrain from offering insurance in New York for five years.
..... "Carry Guard violated New York law in numerous respects," Vullo's brief said. "It provided coverage for intentional acts and criminal defense costs."

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