News Briefs
Claims Quotes Stewart on Cannabis Coverage
March 29, 2019
Ian Stewart (Partner-Los Angeles) was quoted in “Legalized Marijuana: Opportunity or Time Bomb?” published in Claims magazine, April 2019 edition. According to the author, the number of unknowns surrounding the gradual legalization of marijuana across the United States far outweighs what insurers currently understand about this enterprise. For an industry that relies heavily on actuarial data to assess risk, this new venture provides little information on which to base coverage decisions or risk management strategies. Ian said he has seen business disputes and unfair competition claims involving mislabeled products or items that were incorrectly advertised. “Each state has its own market regulations. The regulations cover the same things and the licenses are generally similar. However, each state has the same key points that must be followed.” Ian agreed that there are opportunities for carriers, and he expects several large commercial insurers to enter the market by the end of the year. Other carriers are not so sure.