An insurance company that was backing a National Rifle Association-sponsored program has agreed to pay a $1 million fine for allowing the gun organization to market a product in N.J. that “encourages firearms use,” the New Jersey Department of Banking and Insurance announced Thursday.

The fine is part of a consent order that was agreed to after an investigation by the department found that Lockton Affinity, a licensed insurer in New Jersey, violated various state laws and regulations by contracting with the NRA to market and solicit the gun organization’s Carry Guard insurance program in the state.

The NRA, which offers some branded insurance products in conjunction with Lockton Affinity, is not licensed as an insurance provider in New Jersey.

The Carry Guard program was advertised as providing personal firearms liability insurance, including self-defense insurance for law-abiding gun owners and their families. The insurance also includes protection against civil liabilities and the cost to defend against civil and criminal legal actions.

From April 2017 to December 2017, the NRA maintained a website advertising the program, according to the consent order. The organization also sent out emails marketing Carry Guard as one of their products, the department said.

According to the consent order, 322 Carry Guard certificates, at a value of approximately $104,000, were issued to New Jersey residents through June 30, 2019.

“The marketing and solicitation of a product that encourages firearms use, as carried out by the NRA and permitted by Lockton Affinity, in contravention of state laws is a serious violation,” New Jersey Department of Banking and Insurance Commissioner Marlene Caride said in a statement. “As regulators we have a responsibility to ensure that companies that profit from having guns on the streets are not conducting business in our state in violation of the law.”

Caride said Kansas-based Lockton Affinity had accepted responsibility for its violations. As part of its agreement with the state, the company must take steps to ensure it doesn’t solicit insurance products of unlicensed entities in the future.

“We fully cooperated with the New Jersey Department of Banking and Insurance from the time they first raised this issue with us. We are pleased this matter is now concluded,” a Lockton Affinity spokesperson said in an emailed statement.

Lockton Affinity is licensed in New Jersey as a non-resident insurance producer with various lines of authority, but not for health insurance. The Carry Guard self-defense insurance program included benefits for health insurance, the state said.

The New Jersey Department of Banking and Insurance is continuing to investigate other firearm-related insurance programs for potential violations of state insurance laws, the department said in a statement.

Joe Atmonavage may be reached at jatmonavage@njadvancemedia.com. Follow on Twitter @monavage. Find NJ.com on Facebook.

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