Two-party legislation to provide protection for cannabis companies' insurance companies was introduced in the US Congress on Thursday.
The Marijuana Insurance Act of 2021 would provide a federal safe haven for insurance companies covering cannabis companies where the sale of the drug is legal.
A majority of states have legalized the sale of medical and / or recreational cannabis, but the sale of the drug is still illegal under federal law. The discrepancies between state and federal laws have deterred many insurance companies from offering coverage to cannabis-related companies.
The legislation is sponsored by Senators Bob Menendez, DN.J., Rand Paul, R-Ky., And Jeff Merkley, D -Ore., And Representatives Nydia Velázquez, DN.Y. and Steve Stivers, R-Ohio.
Similar legislation was introduced in 201
The legislation is supported by several insurance industry organizations. Frank Nutter, president of the Reinsurance Association of America, said in a statement: "It is important that state-legalized cannabis-related companies and individuals have the basic protection that the insurance provides so that they can protect their property, employees and customers."