Commissioner Jones to Chair NAIC Cannabis Committee

Thursday, August 9, 2018 | 0

California Insurance Commissioner Dave Jones will serve as chairman of a National Association of Insurance Commissioners committee that will hash out regulatory issues relating to insurance coverage for the cannabis industry, including workers’ compensation issues.

Jones last year launched an initiative trying to persuade carriers to write insurance for marijuana businesses. The Department of Insurance said that prior to the launch of the initiative, carriers were offering coverage to employers in the cannabis industry.

During the NAIC summer meeting, Jones proposed creating a working group to identify coverage gaps in the industry and to develop best practices to close them. The department on Wednesday announced that Jones was elected chairman of the NAIC’s Cannabis Insurance Working Group.

"Cannabis businesses face insurance availability and insurance coverage gaps — which means that those who shop, those who work in, those who sell goods or services to, or those who own, invest in or operate cannabis businesses may not have access to insurance to help them recover if there are accidents, injuries, property damage or any of the things insurance typically covers," Jones said in a statement.

The newly created working group will consider issues “from seed to sale, including availability and scope of coverage, workers' compensation issues, and consumer information and protection,” the department said.

The working group plans to develop a white paper outlining the issues and making recommendations for regulatory oversight of the nation’s budding marijuana industry.