Up In Smoke? Coverage For Medical Marijuana Is Uncertain
Law360, New York ( March 11, 2016, 10:54 AM EST) -- Despite marijuana's rapid strides toward widespread legalization in this country, insurance coverage for medical marijuana-related claims may still be a questionable proposition. As of this writing, 23 states, the District of Columbia and Guam have legally-sanctioned medical marijuana programs;[1] recreational use of marijuana is legal in several states;[2] and the U.S. Department of Justice has indicated that, aside from certain enforcement priorities relating to large-scale criminal enterprises, it will defer to state and local authorities to regulate marijuana activity.[3] Marijuana's mainstream popularity is so pervasive that ostensibly secret "marijuana dinners" in trendsetting Brooklyn are written about openly.[4] Nevertheless, the continued illegality of marijuana at the federal level and in some states has created an uneven legal landscape that may complicate medical marijuana companies' efforts to obtain insurance coverage for certain types of claims. This article will discuss some recent developments in the medical marijuana insurance space and some potential pitfalls for policyholders in the industry....
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