Alabama considers how to insure medical marijuana

Alabama legalized medical marijuana in the state in 2021, with legal operations registering with the state at the end of 2022.

With a weed market that is months old, Commissioner Fowler said there’s not enough historical data to properly regulate rate filings for insurers that wish to offer insurance policies for these businesses.

“At this date, the Alabama Department of Insurance has had difficulty determining whether such ‘liability and casualty insurance’ in the medical cannabis area is available in the Alabama market,” said the insurance bulletin.

“The Department, however, is receptive to the creation of an insurance market that will aid in the implementation of the Darren Wesley ‘Ato’ Hall Compassion Act.”

The insurance bulletin asks that interested property and casualty (P&C) insurers submit rate filings with the department as they would a typical filing. The department will stick with preliminary filing and use rates for three years, or until the state’s actuaries can properly forecast rates.

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