A white paper adopted by the National Association of Insurance Commissioners (NAIC) at its Summer National Meeting updates a 2019 white paper on cannabis-related insurance issues and regulation. Produced by the NAIC’s Cannabis Insurance Working Group, the Regulatory Guide to Understanding the Market for Cannabis Insurance: 2023 Update discusses the evolution of cannabis regulation at the state and local levels and the insurance gaps related to ancillary services, cannabis-infused products, and social consumption lounges.
Among other things, the white paper indicates that the non-admitted market accounts for most commercial insurance policies for cannabis-related businesses and that state-based commercial insurance programs, risk retention groups, captives, and joint underwriting associations are being considered to expand coverage options.
PIA strongly supports the Secure and Fair Enforcement (SAFE) Banking Act (S.1323/H.R.2891), which would protect insurance agents and carriers from the possibility of federal prosecution for providing insurance to cannabis-related entities in states where cannabis is legal. Send a message to Congress urging them to support this legislation. Click here to make your voice heard today!
