California has ordered the National Rifle Association to stop selling an insurance policy that covers legal costs for injury or damage from legally using a gun.
The state Department of Insurance on Tuesday issued a cease and desist order saying that the NRA sold an unlicensed insurance product in the state. The order carries a potential fine of $5,000 a day for violations.
The order refers to the Self-Defense Insurance Policy included in the NRA's Carry Guard membership program. The policy covers some legal costs from criminal cases or lawsuits that arise when a gun is used for self-defense, recreation, hunting, or when a weapon fires accidentally.
About 2,400 Californians are policyholders, which gun control advocates have labeled "murder insurance."
The National Rifle Association says it believes it did nothing wrong. NRA legal counsel William Brewer II says the organization relied on assurances from the insurance broker, Lockton Cos., that the program met California regulations.
In May, Lockton agreed to pay $7 million to settle claims that it illegally marketed the policy in New York.
The NRA sued Lockton after the broker said it would drop involvement with NRA-endorsed policies in the wake of last year's Parkland, Florida, school shooting.