On Monday, the ‘‘Clarifying Law Around Insurance of Marijuana Act’’ or ‘‘CLAIM Act” was introduced before the United States Senate by Sen. Menendez (D-N.J.). The CLAIM Act, which is cosponsored by Sens. Paul (R-Ky.), Merkley (D-Ore.) and Cramer (R-N.D.), would prohibit a federal agency from (i) penalizing or otherwise discouraging insurers from engaging in the business of insurance with a cannabis-related business, or (ii) otherwise terminating or cancelling the policies of an insurer solely because the insurer engaged in the business of insurance in connection with a cannabis-related business. Additionally, under the CLAIM Act, with respect to “[e]ngaging in the business of insurance within a State, political subdivision of a State, or Indian country that allows the cultivation, production, manufacture, sale, transportation, display, dispensing, distribution, or purchase of cannabis,” an insurer that engages in the business of insurance with a cannabis-related business, and the officers, directors, and employees of that insurer may not be held liable pursuant to any federal law solely for engaging in the business of insurance.
The CLAIM Act will be discussed at a Senate Banking Committee hearing on Tuesday, July 23. We will continue to monitor and provide updates on developments relating to the CLAIM Act.
The post Senate to Consider Legislation To Allow Cannabis Businesses to Purchase P&C and Title Insurance appeared first on Insurance & Reinsurance.
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