Bipartisan Senate Bill Would Give Marijuana Businesses Access To Insurance Coverage

MJ moment

A bipartisan bill refiled in the Senate on Thursday would give state-legal marijuana businesses greater access to insurance coverage and protect the companies that offer those plans from being punished by federal regulators. The measure’s introduction comes on the same day that a much-anticipated bill is set to be filed that would increase the cannabis industry’s access to banking services. Sen. Bob Menendez (D-NJ) is the sponsor of the marijuana insurance legislation, titled the Clarifying Law Around Insurance of Marijuana (CLAIM) Act. Rep. Nydia Velazquez (D-NY) will soon be introducing a companion version in the House, as she did last Congress. As it stands, cannabis firms are restricted in their ability to gain property, casualty and title insurance coverage. This bill would prohibit penalizing insurance providers for simply covering those businesses, and it would bar insurers from terminating or limiting policies for marijuana companies or ancillary businesses due to the nature of their enterprise. 2/ The CLAIM Act is a major step forward for business owners, employees, and customers. It’s time to remove these federal strangleholds and let the cannabis industry thrive. — Senator Bob Menendez (@SenatorMenendez) March 18, 2021 Further, it would prohibit “recommending, incentivizing, or encouraging an insurer not to engage in the business of insurance in connection with a policyholder, or downgrade or cancel the insurance offered to a cannabis or cannabis-related business,” a summary of the legislation states. Sens. Rand Paul (R-KY) and Jeff Merkley (D-OR) are also original cosponsors of the CLAIM Act. But unlike last session, Sen. Kevin Cramer (R-ND) did not initially sign on to the new version. “Current federal law prevents these small business owners from getting insurance coverage, and without it, they can’t protect their property, employees or customers,” Menendez said in a press release. “Our legislation simply levels the playing…

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Source : Bipartisan Senate Bill Would Give Marijuana Businesses Access To Insurance Coverage

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