Lloyd's of London refuses to renew NRA Directors and Officers Insurance

Even in the face of this challenge, is the Board setting up another structure to protect EVP LaPierre?

Steve Gutowski at his site The Reload broke the story this morning that the NRA Directors and Officers Insurance will expire on August 1. The NRA will effectively “self-insure.” This creates personal financial risk for every officer and board member.

Consulting Insurance industry experts, they said that, other than Lloyd’s of London, the only other high risk insurer is Berkshire Hathaway. With Lloyd’s dropping coverage, it’s unlikely Berkshire will step in.

Consulting with non-profit experts, they said that organizations that want to self-insure, would usually set up a “captive insurance company.”

Quoting from a Marsh & McLennan Companies document on Captives Director and Officer Liability Insurance. “there are 3 main insuring classes:

•• Side A: Insures wrongful acts of directors and officers when the company is not permitted to indemnify by the broader of applicable law or by-laws, due to bankruptcy, or refuses to indemnify.” …“A company may choose not to indemnify a director or officer even though it is legally permitted to do so – examples of this action would include a “bad actor” or disenfranchised former leader.”…

“•• Side B: Reimburses the company for the indemnification it provides to the directors and officers for claims against them alleging covered wrongful acts.

•• Side C: Insures the company itself for its own liability and, in the public company context, is usually limited to securities claims.”

This situation raises a number of questions. Does the NRA need time to set up a captive insurance company since they are unable to secure commercial coverage? Are they even allowed to have a captive insurance company under NY Non-profit law? Are they allowed to have a captive insurance company under the terms of the settlement of the Carry Guard lawsuit settlement?

Or, is setting up a separate fund and in effect “self insuring” a way to further protect Wayne LaPierre? Given the potential risks for Side A claims due to the actions of the EVP and certain board members as outlined in the NY AG lawsuit, is having a fund that is managed by management and the Board a way to maximize the protection of Wayne and others since the board that has continued to protect him would have to approve any claims? Undoubtedly the Brewer firm will get more of NRA members money throughout this process.

The only self-insured non-profit organization I am aware of is a University that is older than the NRA and run by a religious organization. Their ethics are held to a higher standard.

This is another example of the NRA and the Brewer firm protecting Wayne LaPierre and his cronies, not the members of the NRA. This is why NRA members have filed a motion to intervene in the case so that members interests are properly represented.

Members will elect 25 directors in this election (the ballots are coming out now). Members need to send a clear message that we DEMAND ACCOUNTABILITY. There are 28 candidates on the ballot. Bullet voting is the best way to send that message of accountability

The only director on the front of the ballot that deserves a vote is Owen Buz Mills as he stood up and supported Judge Journey’s attempt to bring in accountability.

NONE of the Nominating committee endorsed candidates deserve a vote. In particular members need to send the message that Carolyn Meadows, the NRA President who admitted that she shredded and burned her notes so that they would not be available, should not be re-elected.

I understand that Rocky Marshall is also running as a write in. In his short time on the Board, he has stepped up and asked the tough questions that Directors should. He deserves your support.

I ask that you please write me and Rocky in on the ballot for the 2021 board of directors election when you get you ballot in the next couple of weeks. It is in the June/July issue of your NRA magazine.

Write In’s MUST have the information as depicted below. Thank you for your support.

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