2019 has been the year that Cannabis legislation has taken off. Multiple states have passed or are in the process of passing laws that allow for cannabis to be regulated and legalized. By the end of the year, it's expected that 15 states and the District of Columbia will have full legalization for cannabis as well as several other states having laws on the books for medical marijuana.[1]
While it is still illegal at the federal level, the recent Farm Act of 2018 no longer puts the plant under the Department of Justice jurisdiction. Its now governed under the Department of Agriculture as a crop just like corn and potatoes. The bill also will allow banks and other financial institutions to give credit to the growers of this drug. However, as it is still illegal at the federal level, insurance agents should be worried of doing business across state borders.
As with any business, they must follow any guidelines in states that they do business in. As it is a considerable risk now, many markets won’t support it or have limited interaction. Any insurance coverage may have different exclusions and may not cover everything that will come up.
[1] https://www.insurancebusinessmag.com/us/news/cannabis/legal-cannabis-regulation-picks-up-steam-159629.aspx
Share this post
