Company selling unauthorized insurance policies in Washington fined $100,000

A company that was selling insurance policies to concealed carry permit holders had to pay some hefty fines in Washington State.

Insurance Commissioner Mike Kreidler fined Wisconsin-based United States Concealed Carry Association, Inc., for violating Washington state laws by selling unauthorized insurance to cover defense costs for shootings.

USCCA agreed to pay a $100,000 fine and $5,457 in unpaid premium taxes, penalties and interest and to stop selling the insurance in Washington state.

The USCCA sold insurance to 1,675 Washington state consumers from Dec. 1, 2018 through Jan. 30, 2019, collecting $241,000. The company hasn't paid any 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 criminal activity.

Additionally, USCCA was not authorized to sell policies in Washington state, and their policies had not been 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.

Kriedler's office says 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.