Cannabis Bill Backed by PIA Set for House Vote

Throughout the summer, PIA National has been working to advance legislation to protect insurance agents from prosecution for doing business with cannabis-related enterprises in states in which such businesses are legal. In July, the Clarifying Law Around Insurance of Marijuana (CLAIM) Act was introduced with PIA’s full support. The bill would provide a legal safe harbor for independent agents that engage in insurance-related transactions associated with cannabis businesses that are otherwise permissible under state law. 

Over the last several months, PIA National has been working with other insurance trade associations to build support for this important bill. Our advocacy has paid off, as key parts of the CLAIM Act will be merged with another bill, H.R. 1595, the SAFE Banking Act of 2019, which is meant to shield bankers from the same legal jeopardy concerning cannabis. The SAFE Banking Act, which will include protections for insurance agents and carriers, is scheduled to be considered on the House floor this week. 

The addition of key provisions of the CLAIM Act in the SAFE Banking Act will prevent federal criminal prosecution of and civil liability for agents, brokers, and insurers, and their officers, directors, and employees when engaging in the business of insurance in states that have legalized cannabis in some form.

PIA supports the SAFE Banking Act now that it includes the provisions from the CLAIM Act that protect agents, and we are advocating for its passage in the U.S. House this week as a crucial first step to providing certainty and protections for insurance agents involved in servicing cannabis-related businesses in states where it is legal. 

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