We’ve posted on the subject in the past. A nonprofit’s directors are legally liable whenever they fall short in their fiduciary duties to the organization, the duty to put the organization’s interests first. With NRA, we’re talking about a once big organization that is now facing insolvency and disaster, not to mention a big lawsuit, and a board that knows what the problems are, and hides its head in the sand. For years. In that situation, a director must wonder how good is the NRA’s Directors’ and Officers’ insurance policy? That’s all that stands between him and losing his house over this. We’re talking about having been involved in the collapse of what was once a $350 million corporation, and millions of members out for blood.
The subject came into focus in August 2021, when Lloyd’s of London, which carried the NRA policy for years, refused to renew it, leading to director Buzz Mills resigning his post. For a time NRA self-insured, meaning had no policy at all, and then it was announced that it had gotten a new policy.
We had some suspicions about the new policy, which were compounded when NRA leadership refused to let a director see the policy. The policy was revealed during a Russian hack of NRA computers, and turns out to be worthless. It wouldn’t cover anything alleged in the Attorney General’s lawsuit for one thing, and its coverage is limited to $15 million (which will vanish quickly if 76 directors are being sued).
BTW, the premium was $3.5 million — we’ve never heard of a policy where the premiums were nearly one-quarter the coverage. That that was best NRA leadership could find tells us what the insurance industry thinks of the board’s legal risks.
8 thoughts on “NRA’s Directors’ Liability Insurance”
High premiums can also refer to high risk, as determined by the insurance company.
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Thanks for the refreshers, NRAInDanger, and thank you again for reporting here.
The news never gets better does it? At this point, I would not be surprised to hear that the leadership of the NRA was using it to launder drug money. I mean, is there anything else left that they have not done criminally to sully the good name of the once proud organization that is the NRA?
We should be so lucky. If they’d been laundering drug money, they’d probably be solvent.
Simply resigning or leaving after their term expires is not a defense to the allegation of failure to exercise due dilligence or fiduciary duty. The statute of limitations is longer than that. Ignorance isn’t a defense either, I believe the standard is ” Knew or SHOULD HAVE Known” This will unfold for years just like the current lawsuit with the NYAG. Get some popcorn. It will be a show. The real tragedy is that the membership is only now beginning to pay attention and the truth is it is too late for Rocky Marshal, Frank Tait or I to intervene and affect the outcome as Rocky went off the Board last year and Frank and I go off the Board at adjournment of the Members Meeting April 15 in Indianapolis. We lose standing to intervene in the NYAG case. Frank and Rocky tried and were denied standing in the past. Frank wasn’t on the Board at that time and Rocky was near the end of his term when he made his motion. In my humble opinion there is no one on the Board or in the individuals elected who will stick their head out of the trench or say the emperor is a crook
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I’ve reported on this several times, yet the Board continues to do nothing. They’ve reelected WLP 4 times since they found out he was misusing funds and failing to report conflicts of interest, and they’re about to do it again. The Director who was supposed to be at the tip of the spear of keeping the NRA on the straight and narrow — and failed miserably — was Charles Cotton, who stepped up in defense of WLP and rose almost immediately to the presidency. Now they’re planning to keep him there for an almost unprecedented third term. Not only are these folks unwilling to face the truth and do the hard things required of them to protect the NRA, they’re unwilling to do what’s necessary to protect themselves and their families from financial ruin. There’s a very high probability that New York will come after them each individually, and as noted here, the NRA and their friends at the top, won’t be there to protect them.
Keep up the good work Jeff!
I’ve been a BOD member for a local VFD for many years and understand the responsibilities on a much smaller but albeit large scale for me. Take your forefinger and thumb rotating them in a circular motion. There you have the world’s smallest record playing “My Heart Bleeds for You.” As An Endowment Life Member and since the 2019 Insurrection I have no sympathy of any kind for Board members. I’ve spent my money elsewhere since 2019 till Wayne’s gone.