Velázquez and Davidson Reintroduce Bill to Help Legal Cannabis Businesses Obtain Insurance

WASHINGTON —Today, Rep. Nydia M. Velázquez (D-NY) and Rep. Warren Davidson (R-OH) reintroduced the Clarifying Law Around Insurance of Marijuana, or CLAIM Act, legislation that would shield insurers from federal criminal prosecution and protect brokers, agents, and insurers from civil liability when they serve businesses in the state-legal cannabis industry.

“Because of the conflict between federal and state law, insurers are still hesitant to write policies for cannabis businesses,” said Congresswoman Velázquez. “That means thousands of legal small businesses are operating without a safety net. One fire or one storm could wipe out everything an owner has built, with no way to recover. The CLAIM Act fixes this by giving these entrepreneurs access to the same basic insurance protections every other legal business takes for granted.”

“Businesses operating legally under state law should be free to purchase insurance, and insurers should be free to serve them,” said Rep. Davidson. “The federal government should not use regulation to interfere with lawful commerce or override decisions made by the states. The CLAIM Act removes that federal interference and protects the freedom of insurers and their customers to do business."

The CLAIM Act is endorsed by a broad coalition of insurance industry organizations, including the American Land Title Association, American Council of Life Insurers, American Property Casualty Insurance Association, Council of Insurance Agents & Brokers, Independent Insurance Agents & Brokers of America, National Association of Mutual Insurance Companies, National Association of Professional Insurance Agents, Reinsurance Association of America, and Wholesale & Specialty Insurance Association.

The legislation also directs the Government Accountability Office to study the barriers facing women and minority entrepreneurs seeking to enter the cannabis industry and identify ways to expand access to this growing market.

The text of the bill can be found here.
 

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