A bipartisan pair of senators has introduced legislation designed to protect insurance companies that provide coverage to state-legal marijuana businesses.
Senate Bill 5049 was filed Tuesday by Senator Kevin Cramer (R-ND) and Ruben Gallego (D-AZ). The measure would create a federal safe harbor for insurers engaging in business with a “cannabis-related legitimate business.”
The bill was read twice and referred to the Senate Committee on Banking, Housing and Urban Affairs.
The proposal is the latest version of the Clarifying Law Around Insurance of Marijuana (CLAIM) Act. Cramer previously cosponsored the legislation alongside Senators Rand Paul and Jeff Merkley, with then-Senator Bob Menendez serving as its lead sponsor.
“Much like marijuana businesses are barred from using bank accounts, they are also locked out of insurance markets”, said Senator Kramer. “Businesses, as we know, obviously assume risk [because] that’s part of being in business. But the risk for cannabis companies that operate in states where it’s actually legal is especially high. The CLAIM Act makes sure insurers can offer their commercial products to regulated marijuana-related businesses without fear of federal prosecution.”
Although dozens of states allow medical or recreational marijuana, cannabis businesses continue to face complications because marijuana remains prohibited under federal law. Insurers may consequently be reluctant to offer property, casualty, workers’ compensation and other forms of coverage to businesses involved in the state-regulated industry.
The full text of the bill can be found by clicking here.
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