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NRA files for bankruptcy, moves to Texas

United Press International by United Press International
January 15, 2021
in National
Reading Time: 2 mins read
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NEW YORK (UPI) — The National Rifle Association (NRA) filed for bankruptcy Friday and said it plans to implement a restructuring plan, moving the organization from New York to Texas.

In the Chapter 11 filing, the NRA said it plans to now operate as a non-profit organization in Texas after being incorporated in New York for about 150 years.

“The move will enable long-term, sustainable growth and ensure the NRA’s continued success as the nation’s leading advocate for constitutional freedom — free from the toxic political environment of New York,” the NRA said.

The announcement comes two months after the organization agreed to pay $2.5 million to resolve an investigation into whether it violated New York insurance laws. It also agreed to stop marketing its insurance to members in the state for five years.

New York officials said the NRA operated as an “unlicensed insurance producer” and sold “dangerous and impermissible insurance products” through its Carry Guard program.

The state’s investigation found the NRA earned commission on more than 28,000 sales of insurance products to New York members, despite not having a proper insurance license.

These sales included the organization’s Carry Guard program, which pledged to cover legal fees and civil liability costs of policyholders involved in firearm-related incidents in which they claimed they acted in self-defense, which was deemed unlawful in New York.

The New York attorney general’s office sued to dissolve the NRA in August, accusing it of illegally diverting millions from charity to benefit senior leadership.

Reporting by Danielle Haynes. Daniel Uria contributed to this report.

United Press International
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United Press International is an international news agency whose newswires, photo, news film, and audio services provided news material to thousands of newspapers, magazines and radio and television stations for most of the 20th century.

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