Are Your Clients Going Green?

As of April 2024, 24 US States have legalized marijuana1. How do carriers view this risk?

If your client is using marijuana for medical purposes the insurance carriers will be more concerned with the underlying condition for which it was prescribed rather than the marijuana use itself. They will also require confirmation of a recommendation card (Rec), as verifiable proof of prescription.

For recreational users, the underwriters take a few things into consideration.

• Are you in a state that has legalized the use of marijuana?

If not, the file will automatically be declined.

• How old is the applicant? What age did the applicant begin using marijuana?

The legal age for recreational marijuana use is 21, any younger than that and they typically will not offer coverage.

• How often does the client smoke?

A few times annually? Monthly? Daily? The more often an applicant smokes the bigger the risk

• Form of ingestion?

Do they smoke or consume edibles?

Underwriting Restrictions Include:

• If the applicant is involved with administrative, growing , distributing, or sales associated with the marijuana industry
• There can be no history of alcohol or other drug abuse
• No current use of other drugs of abuse, to include substances prescribed by a physician (ex. An opioid medication)
• No complications relating to marijuana use
• No criminal history
• No significant motor vehicle violations

Will tetrahydrocannabinol (THC), the chemical responsible for most of marijuana’s psychological effects, show up in their lab work? Yes, IF the carrier tests for THC but not all carriers will test for THC during the paramed exam.

Ultimately, most want to know how it affects the health class. Some carriers consider any marijuana use (medicinal or recreational) as smoker/tobacco, even if they do not smoke cigarettes or use any form of tobacco.? Fortunately, we do have a few carriers that will offer a non-tobacco rating for marijuana users.

When filling out the application, take care to disclose the marijuana use, the reason, and how much. You do not want the carrier to uncover it during the underwriting process.??Carriers do not look favorably on cases where it is not admitted up front, it could result in a decline or automatic tobacco health class.

Contact your Asset dedicated case manager for any questions or to request a risk assessment for your client.

1. https://search.app.goo.gl/tCEemEL