Commissioner Jones renews request to insurers to offer insurance for cannabis industry
News: 2018 Press Release
SACRAMENTO, Calif. — Insurance Commissioner Dave Jones has renewed his call for insurers to offer insurance products for California's legalized cannabis industry in the wake of last week's published reports that President Trump has abandoned Attorney General Jeff Sessions' policy on federal law enforcement of cannabis. Since the voters of California voted to legalize adult recreational use of cannabis in November 2016, Commissioner Jones has worked to get insurers to offer insurance products to cover the insurance needs of the cannabis industry. Over 24 surplus lines insurers and the first admitted insurer are now offering insurance for various risks faced by the cannabis businesses in California.
Commissioner Dave Jones sent a formal letter last week to California insurers encouraging them to fill insurance gaps for California's cannabis businesses. In part Jones' letter reads:
"The mission of the California Department of Insurance is 'Insurance Protection for All Californians.' We work with the insurance industry to promote a healthy insurance market that offers insurance products to meet the ever-changing needs of Californians and California businesses. This includes making insurance available to the state licensed legal cannabis businesses in California.
Even prior to the most recent decision by President Trump, there have been no reported instances of federal prosecution of a cannabis business lawfully operating in a state that legalized cannabis. The recent decision by President Trump should reduce further the risk of federal prosecution of legal cannabis businesses and the insurers that provide them insurance.
The Department of Insurance will process cannabis rate filings expeditiously and will not object to proposed rates that have a rational basis. I invite insurance companies to take advantage of the tremendous market opportunity represented by the cannabis industry that currently has revenues of $9 billion and is projected to grow to $60 billion by 2027. I look forward to the opportunity to work with insurers to increase the availability of insurance for the California cannabis industry."
Led by Insurance Commissioner Ricardo Lara, the California Department of Insurance is the consumer protection agency for the nation's largest insurance marketplace and safeguards all of the state’s consumers by fairly regulating the insurance industry. Under the Commissioner’s direction, the Department uses its authority to protect Californians from insurance rates that are excessive, inadequate, or unfairly discriminatory, oversee insurer solvency to pay claims, set standards for agents and broker licensing, perform market conduct reviews of insurance companies, resolve consumer complaints, and investigate and prosecute insurance fraud. Consumers are urged to call 1-800-927-4357 with any questions or contact us at www.insurance.ca.gov via webform or online chat. Non-media inquiries should be directed to the Consumer Hotline at 800-927-4357. Teletypewriter (TTY), please dial 800-482-4833.
