Clearing Up The Smoke: Insurance And Marijuana

Law360, New York (February 3, 2017, 11:55 AM EST) -- Christopher L. Troy

Deepa T. Sutherland

Hernán N. Cipriotti Following on from our last article concerning issues for (re)insurers arising from an insured’s illegal conduct, this article examines the issues arising out of the burgeoning legalized marijuana industry in the U.S.

The cultivation and use of marijuana for medicinal and/or recreational purposes are now permitted in 29 states and in Washington D.C. However, marijuana is still classified as a Schedule I controlled substance under the federal Controlled Substances Act[1], and the manufacture, possession, distribution and sale of marijuana for any purpose is, therefore, illegal under federal U.S. law.

This conflict between...

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