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.