P&C industry reacts to the passage of marijuana banking bill
The SAFE Banking Act includes key provisions that protect insurance agents involved in servicing cannabis-related businesses.
Major players in the property & casualty insurance industry reacted positively to the U.S. House of Representatives passing H.R. 1595, the SAFE Banking Act of 2019.
The SAFE Banking Act includes key provisions from an insurance-focused cannabis bill that could protect insurance agents involved in servicing cannabis-related businesses in states where such business is legal. The vote was 321-103.
At first, the SAFE Banking Act only applied to banks. Then, the National Association of Professional Insurance Agents (PIA National) and other allies recently secured key parts of the PIA National-supported Clarifying Law Around Insurance of Marijuana (CLAIM) Act into the bill. 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.
Industry reaction
PIA National released the following statement:
“PIA National supports the SAFE Banking At now that it includes the provisions from the CLAIM Act that protect insurance agents,” Jon Gentile, vice president of government relations for PIA National, said in a press release. “We will continue to advocate for its passage and have already begun to work with Senators to urge the bill’s passage.”
National Cannabis Risk Management Association (NCRMA) added:
“We applaud the U.S. House of Representatives for voting to approve the cannabis banking bill. Because of the lack of access to financial services, cannabis businesses are being forced to operate on a cash basis which only increases risk for theft and other crimes. This in turn leads to higher premiums for insurance that cannabis-related businesses desperately need to protect against crop loss, product liability and other critical business issues,” Rocco Petrilli, NCRMA chairman and chief operating officer, said in a statement. ”While these types of insurance policies are considered ‘part of the table setting’ in other industries, they remain inaccessible and unaffordable in the cannabis space. We must continue to work to find solutions to challenges that stand in the way of success for cannabis-related businesses — and this bill is a step in the right direction.”
And this came from the Independent Insurance Agents & Brokers of America (the Big “I”):
“The Big ‘I’ applauds the House of Representatives for passing the SAFE Banking Act and taking the steps necessary to protect agents and brokers,” Charles Symington, Big “I” senior vice president of external, industry & government affairs, said in a statement.
“Now that the legislation has passed the House, the Big ‘I’ encourages the Senate to take action on cannabis legislation,” Joseph Cortina, Big “I” director of federal government affairs, said in a statement.
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