Can You Get a Marijuana Exec Coverage?

[Brian Anderson]

A "hot" prospect? If anyone in California has a carrier (apparently not MOO) that will provide life insurance to someone who works in the marijuana industry, you might want to contact this guy... Here is an excerpt from a Tuesday article in "The Influence":

CEO of Major Marijuana Company Denied Life Insurance Purely Because He Works in That Industry

Derek Peterson, the CEO of Terra Tech—a company that grows and sells cannabis products in California and Nevada and is one of the biggest players in the burgeoning pot business—has been denied life insurance simply because of the industry in which he works.

"We cannot accept premium from individuals or entities who are associated with the marijuana industry," reads a letter from Mutual of Omaha, a Fortune 500 insurance company.

Strangely enough, Mutual of Omaha does insure people who use marijuana, and is known for offering them relatively good rates. Most insurance companies classify cannabis consumers in the same category as cigarette smokers, despite scientific evidence that marijuana smoke is much less harmful that tobacco smoke.

According to various life-insurance sites, Mutual of Omaha is one of several insurance companies that will offer non-tobacco-smoker rates to cannabis users, as long as they consume about once per week. A company spokesman would not confirm this, but did say that "consuming [cannabis] is not a automatic exclusion."

"If they're willing to insure people who utilize cannabis, what's the concern with someone operating under state laws?" says Peterson. "It's extremely frustrating. Entrepreneurs who are creating jobs and paying taxes are still suffering [from the lack of] very basic services that we need, whether it's banking or insurance or benefits."

Mutual of Omaha attempted to justify the rejection in the letter [printed in the link below], but didn't even offer a complete sentence: "We are regulated by agencies of the." it reads. It seems that the company intended to reference federal prohibition as the reason for rejecting the application.

CEO of Major Marijuana Company Denied Life Insurance Purely Because He Works in That Industry | TheInfluence

 

[STIBROKER]

For a sec I said to myself....what Tommy Chong can not get life insurance.......

 

[goillini52]

A "hot" prospect? If anyone in California has a carrier (apparently not MOO) that will provide life insurance to someone who works in the marijuana industry, you might want to contact this guy... Here is an excerpt from a Tuesday article in "The Influence":

CEO of Major Marijuana Company Denied Life Insurance Purely Because He Works in That Industry

Derek Peterson, the CEO of Terra Tech—a company that grows and sells cannabis products in California and Nevada and is one of the biggest players in the burgeoning pot business—has been denied life insurance simply because of the industry in which he works.

"We cannot accept premium from individuals or entities who are associated with the marijuana industry," reads a letter from Mutual of Omaha, a Fortune 500 insurance company.

Strangely enough, Mutual of Omaha does insure people who use marijuana, and is known for offering them relatively good rates. Most insurance companies classify cannabis consumers in the same category as cigarette smokers, despite scientific evidence that marijuana smoke is much less harmful that tobacco smoke.

According to various life-insurance sites, Mutual of Omaha is one of several insurance companies that will offer non-tobacco-smoker rates to cannabis users, as long as they consume about once per week. A company spokesman would not confirm this, but did say that "consuming [cannabis] is not a automatic exclusion."

"If they're willing to insure people who utilize cannabis, what's the concern with someone operating under state laws?" says Peterson. "It's extremely frustrating. Entrepreneurs who are creating jobs and paying taxes are still suffering [from the lack of] very basic services that we need, whether it's banking or insurance or benefits."

Mutual of Omaha attempted to justify the rejection in the letter [printed in the link below], but didn't even offer a complete sentence: "We are regulated by agencies of the." it reads. It seems that the company intended to reference federal prohibition as the reason for rejecting the application.

CEO of Major Marijuana Company Denied Life Insurance Purely Because He Works in That Industry | TheInfluence

MOFO must be classifying the guy as a "drug dealer".

 

[DHK]

 

[UW Guy]

Nobody wants to touch these guys, and you can thank OFAC. The money they bring in can't traced to a point where it's clean as the driven snow so until the Feds ok weed guys like this are SOL.

 

[IamChange]

I'm raising this issue because I may be insuring one such executive soon and more than half of the states have some form of legal marijuana laws on the books. The US Treasury has issued guidance for financial institutions who want to legally do business with state legal marijuana companies: [would post a link to FINCEN here but this is my first post. Article entitled "BSA Expectations Regarding Marijuana-Related Businesses"].

Apparently there are a limited number of carriers who will underwrite a policy for a medical marijuana exec but they do exist according to the websites of a variety of insurance brokers. I'm hoping to make or obtain a current list of carriers who will write life and disability policies for partners in such a business, and/or for employees. I know Lloyds is out, but does anyone know which companies are playing ball?

 

[walthamny]

While the issue is entertaining, from an underwriters point of view, the applicant works in a field that the federal law thinks it is illegal, so his income to pay for the future premiums is at higher risk. You would not insure someone who may end up in jail with no income.

 

[TampaHound]

I actually invested (a small amount) in this industry. I fully expect there to be a reversal in the federal govt. standing concerning pot in the next two years or so. Just way to much money to be made.

 

[scagnt83]

This is one of those situations that I would give as little info as possible. Ive found that most carriers do not get too deep into what the business is or what it does. They just want to verify that the business exists and that the person signing on behalf of the business is in-fact an executive.

Position: Business Owner
Occupation: Sales
Industry: Sales

Id start there and hope they dont ask any deeper questions about the business. If they ask "what kind of sales" I would say "herbal supplements" .... LOL. jmo

 

[walthamny]

This is one of those situations that I would give as little info as possible. Ive found that most carriers do not get too deep into what the business is or what it does. They just want to verify that the business exists and that the person signing on behalf of the business is in-fact an executive.

Position: Business Owner
Occupation: Sales
Industry: Sales

Id start there and hope they dont ask any deeper questions about the business. If they ask "what kind of sales" I would say "herbal supplements" .... LOL. jmo

That would work in most cases but if he is a CEO making over 1 million dollars a year, they usually require more than just the job title. They also do more and more e-searches so chances are this guys name comes up under something other than herbal supplements. Hey, this why you should get some permanent insurance as a child if you can afford it. No such issues later on.