CLAIM Act Introduced in the U.S. Senate, Would Give Cannabis-Industry Access to Insurance
Senator Bob Menendez introduced the Clarifying Law Around Insurance of Marijuana Act (the “CLAIM Act”) on Thursday, March 18, 2021. The bill is co-sponsored by Senators Jeff Merkley and Rand Paul, and will be introduced in the U.S. House of Representatives by Rep. Nydia Velázquez.
The CLAIM Act would forbid federal agencies from discouraging insurers from providing insurance to a legal cannabis-related business or political subdivision regulating a legal cannabis-related business. Federal agencies would also be prevented from taking actions against such insurers or taking any action that would incentivize an insurer to not engage in business with a cannabis-related business. The bill also provides that insurers and their officers, directors, and employees will not be held liable pursuant to any federal law or regulation. The bill directs the Comptroller General of the United States to carry out a study on the barriers to entry to the cannabis industry faced by minority- and women-owned businesses.
We will continue to monitor the CLAIM Act as it moves through Congress.
As the law continues to evolve on these matters, please note that this article is current as of date and time of publication and may not reflect subsequent developments. The content and interpretation of the issues addressed herein is subject to change. Cole Schotz P.C. disclaims any and all liability with respect to actions taken or not taken based on any or all of the contents of this publication to the fullest extent permitted by law. This is for general informational purposes and does not constitute legal advice or create an attorney-client relationship. Do not act or refrain from acting upon the information contained in this publication without obtaining legal, financial and tax advice. For further information, please do not hesitate to reach out to your firm contact or to any of the attorneys listed in this publication.
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