how-marijuana-use-affects-disability-insurance-underwritingMore and more states are changing their state laws and enforcement related to marijuana use- either recreational or medicinal. There are currently 11 states where marijuana is fully legal (including Washington D.C.) and an additional 17 states that have legalized medicinal marijuana. In 2019, there are eleven states that have some sort of bill currently in progress related to making changes to the existing marijuana laws. Or course, marijuana use is still illegal on the federal level. We are getting an increasing number of cases related to clients working in the marijuana industry as well as clients who are using marijuana, either medicinally or recreationally.

Considerations for those who personally use marijuana

The use of marijuana does affect the medical underwriting of a disability application. As the agent, it’s important to get this type of information on the front end, so there are no surprises once the application is in underwriting. Generally, clients with infrequent marijuana use, in the range of one to three times monthly, can expect no modifications. We have at least one carrier that will still offer coverage with use up to one to three times per week but with a tobacco rating. Most of the carriers would use individual consideration with weekly usage and an inquiry with detailed client information would need to be done before quoting. Typically, non-medicinal use is viewed more favorably than medicinal use. If traditional carriers aren’t an option, we do have options with special risk DI carriers.

Considerations for business owners and those who work in the marijuana industry

There are different guidelines for those working in the marijuana industry. We typically cannot get individual DI coverage with a traditional carrier however we do have options for these clients with a special risk carrier. We also now have options for business insurance as well such as key person coverage, business loan coverage and buy sell. These plans are simplified issue and require no labs. The premiums can also be paid by credit card which is an important option as many of these businesses are unable to obtain checking accounts.

Please contact us if you have any questions about insuring these clients!

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