A coalition of trade associations that represent the insurance industry is backing recently filed congressional legislation that would provide a protect companies that provide coverage for state-legal marijuana businesses from federal punishment.
“The insurance industry is potentially exposed to liability arising from the differences of the legal treatment of cannabis and cannabis products under federal and state law,” the groups wrote in a letter to the bipartisan House and Senate sponsors of the Clarifying Law Around Insurance of Marijuana (CLAIM) Act, which would provide a safe harbor for insurers, brokers and agents from being penalized by federal regulators for providing insurance services to state-licensed marijuana companies.
“By resolving the legal uncertainty presented by the dueling state and federal treatment of marijuana, the insurance industry can serve both cannabis-related legitimate businesses (CRLBs) and other commercial lines consumers, as well as personal lines consumers who may have a direct or indirect relationship to state-legalized cannabis, and still be in compliance with the law,” the letter to the House and Senate sponsors of the legislation says.
It was signed by the American Land Title Association, American Council of Life Insurers, American Property Casualty Insurance Association, Council of Insurance Agents & Brokers, Independent Insurance
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