

John Costello, the chairman of the association, condemned what transpired onstage with Watters: “The association acted quickly and decisively following the incident, and the interview session conducted at our event does not reflect the culture and values of the Big I,” Costello said in a statement. He was later quietly sidelined from most duties at the insurance organization.

But ultimately it was not enough to quell the outrage. Rusbuldt, who was set to officially retire in August, apologized to those gathered at the diversity-focused luncheon later that day. The chat between Watters and Rusbuldt, which continued on after the appalling remark, had immediate consequences. “The organization went into damage control.” “It was an epic meltdown afterward,” one of the people familiar with the matter told me. Others walked out of the room and conveyed to the trade association that they were appalled at the behavior exhibited by Watters. Some executives, many of whom planned to attend a diversity and inclusion luncheon later in the day, squirmed in their seats as a wave of awkwardness washed over the audience. The gross attempt at humor prompted some laughs, but also outrage. Watters, who has a history of making offensive remarks on Fox News, made a crude comment questioning the gender of Vice President Kamala Harris, the people said.
