II 

117TH CONGRESS 

1ST SESSION S. 862 

To create a safe harbor for insurers engaging in the business of insurance 

in connection with a cannabis-related legitimate business, and for other 

purposes. 

IN THE SENATE OF THE UNITED STATES 

MARCH 18, 2021 

Mr. MENENDEZ (for himself, Mr. PAUL, and Mr. MERKLEY) introduced the 

following bill; which was read twice and referred to the Committee on 

Banking, Housing, and Urban Affairs 

A BILL 

To create a safe harbor for insurers engaging in the business 

of insurance in connection with a cannabis-related legitimate business, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Clarifying Law Around 

5 Insurance of Marijuana Act’’ or the ‘‘CLAIM Act’’. 

6 SEC. 2. SAFE HARBOR FOR INSURERS AND THE BUSINESS 

7 OF INSURANCE. 

8 (a) DEFINITIONS.—In this Act: 


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1 (1) CANNABIS.—The term ‘‘cannabis’’ has the 

2 meaning given the term ‘‘marihuana’’ in section 102 

3 of the Controlled Substances Act (21 U.S.C. 802). 

4 (2) CANNABIS PRODUCT.—The term ‘‘cannabis 

5 product’’ means any article that contains cannabis, 

6 including an article which is a concentrate, an edi7 ble, a tincture, a cannabis-infused product, or a top8 ical. 

9 (3) CANNABIS-RELATED LEGITIMATE BUSI10 NESS.—The term ‘‘cannabis-related legitimate busi11 ness’’ means a manufacturer, producer, or any per12 son or company that— 

13 (A) engages in any activity described in 

14 subparagraph (B) pursuant to a law established 

15 by a State or a political subdivision of a State, 

16 as determined by the State or political subdivi17 sion; and 

18 (B) participates in any business or orga19 nized activity that involves handling cannabis or 

20 cannabis products, including cultivating, pro21 ducing, manufacturing, selling, transporting, 

22 displaying, dispensing, distributing, or pur23 chasing cannabis or cannabis products. 

24 (4) FEDERAL AGENCY.—The term ‘‘Federal 

25 agency’’— 


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1 (A) has the meaning given the term ‘‘Exec2 utive agency’’ in section 105 of title 5, United 

3 States Code; and 

4 (B) includes a private attorney described 

5 in section 3002(1)(B) of title 28, United States 

6 Code. 

7 (5) FINANCIAL SERVICE.—The term ‘‘financial 

8 service’’— 

9 (A) means a financial product or service, 

10 as defined in section 1002 of the Consumer Fi11 nancial Protection Act of 2010 (12 U.S.C. 

12 5481); and 

13 (B) includes— 

14 (i) the business of insurance; 

15 (ii) whether performed directly or in16 directly, the authorizing, processing, clear17 ing, settling, billing, transferring for de18 posit, transmitting, delivering, instructing 

19 to be delivered, reconciling, collecting, or 

20 otherwise effectuating or facilitating of 

21 payments or funds, where such payments 

22 or funds are made or transferred by any 

23 means, including by the use of credit 

24 cards, debit cards, other payment cards, or 

25 other access devices, accounts, original or 


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1 substitute checks, or electronic funds 

2 transfers; 

3 (iii) acting as a money transmitting 

4 business that directly or indirectly makes 

5 use of a depository institution in connec6 tion with effectuating or facilitating a pay7 ment for a cannabis-related legitimate 

8 business or service provider in compliance 

9 with section 5330 of title 31, United 

10 States Code, and any applicable State law; 

11 and 

12 (iv) acting as an armored car service 

13 for processing and depositing with a depos14 itory institution or a Federal Reserve bank 

15 with respect to any monetary instruments, 

16 as defined in section 1956(c) of title 18, 

17 United States Code. 

18 (6) INDIAN COUNTRY.—The term ‘‘Indian coun19 try’’ has the meaning given the term in section 1151 

20 of title 18, United States Code. 

21 (7) INDIAN TRIBE.—The term ‘‘Indian Tribe’’ 

22 has the meaning given the term in section 102 of the 

23 Federally Recognized Indian Tribe List Act of 1994 

24 (25 U.S.C. 479a). 


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1 (8) INSURER.—The term ‘‘insurer’’ has the 

2 meaning given the term in section 313(r) of title 31, 

3 United States Code. 

4 (9) MANUFACTURER.—The term ‘‘manufac5 turer’’ means a person or company who manufac6 tures, compounds, converts, processes, prepares, or 

7 packages cannabis or cannabis products. 

8 (10) PRODUCER.—The term ‘‘producer’’ means 

9 a person who plants, cultivates, harvests, or in any 

10 way facilitates the natural growth of cannabis. 

11 (11) STATE.—The term ‘‘State’’ means each of 

12 the several States, the District of Columbia, the 

13 Commonwealth of Puerto Rico, and any territory or 

14 possession of the United States. 

15 (b) INSURERS.—A Federal agency may not— 

16 (1) prohibit, penalize, or otherwise discourage 

17 an insurer from engaging in the business of insur18 ance in connection with— 

19 (A) a cannabis-related legitimate business; 

20 or 

21 (B) a State, political subdivision of a 

22 State, or Indian Tribe that exercises jurisdic23 tion over cannabis-related legitimate businesses; 

24 (2) terminate, cancel, or otherwise limit the 

25 policies of an insurer solely because the insurer has 


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1 engaged in the business of insurance in connection 

2 with a cannabis-related legitimate business; 

3 (3) recommend, incentivize, or encourage an in4 surer not to engage in the business of insurance in 

5 connection with a policyholder, or downgrade or can6 cel the insurance and insurance services offered to a 

7 policyholder solely because— 

8 (A) the policyholder is— 

9 (i) a manufacturer or producer; or 

10 (ii) the owner, operator, or employee 

11 of a cannabis-related legitimate business; 

12 (B) the policyholder later becomes an em13 ployee, owner, or operator of a cannabis-related 

14 legitimate business; or 

15 (C) the insurer was not aware that the pol16 icyholder is an employee, owner, or operator of 

17 a cannabis-related legitimate business; or 

18 (4) take any adverse or corrective supervisory 

19 action on a policy to— 

20 (A) a cannabis-related legitimate business, 

21 solely because the owner or operator owns or 

22 operates a cannabis-related legitimate business; 

23 (B) an employee, owner, or operator of a 

24 cannabis-related legitimate business or service 

25 provider, solely because the employee, owner, or 


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1 operator is employed by, owns, or operates a 

2 cannabis-related legitimate business, as applica3 ble; or 

4 (C) an owner or operator of real estate or 

5 equipment that is leased to a cannabis-related 

6 legitimate business, solely because the owner or 

7 operator of the real estate or equipment leased 

8 the equipment or real estate to a cannabis-re9 lated legitimate business, as applicable. 

10 (c) PROTECTIONS UNDER FEDERAL LAW.—With re11 spect to engaging in the business of insurance within a 

12 State, political subdivision of a State, or Indian country 

13 that allows the cultivation, production, manufacture, sale, 

14 transportation, display, dispensing, distribution, or pur15 chase of cannabis pursuant to a law or regulation of such 

16 State, political subdivision, or Indian Tribe that has juris17 diction over the Indian country, as applicable, an insurer 

18 that engages in the business of insurance with a cannabis19 related legitimate business or service provider or who oth20 erwise engages with a person in a transaction permissible 

21 under State law related to cannabis, and the officers, di22 rectors, and employees of that insurer may not be held 

23 liable pursuant to any Federal law or regulation— 

24 (1) solely for engaging in the business of insur25 ance; or 


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1 (2) for further investing any income derived 

2 from such business of insurance. 

3 (d) RULE OF CONSTRUCTION.—Nothing in this Act 

4 shall— 

5 (1) require an insurer to engage in the business 

6 of insurance in connection with a cannabis-related 

7 legitimate business; or 

8 (2) interfere with the regulation of the business 

9 of insurance in accordance with the Act of March 9, 

10 1945 (59 Stat. 33, chapter 20; 15 U.S.C. 1011 et 

11 seq.) (commonly known as the ‘‘McCarran-Ferguson 

12 Act’’), and the Dodd-Frank Wall Street Reform and 

13 Consumer Protection Act (12 U.S.C. 5301 et seq.). 

14 SEC. 3. GAO STUDY ON DIVERSITY AND INCLUSION. 

15 (a) STUDY.—The Comptroller General of the United 

16 States shall carry out a study on the barriers to market17 place entry, including in the licensing process, and the ac18 cess to financial services for potential and existing minor19 ity-owned and women-owned cannabis-related legitimate 

20 businesses. 

21 (b) REPORT.—The Comptroller General shall submit 

22 to Congress a report— 

23 (1) containing all findings and determinations 

24 made in carrying out the study required under sub25 section (a); and 


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1 (2) containing any regulatory or legislative rec2 ommendations for removing barriers to marketplace 

3 entry, including in the licensing process, and ex4 panding access to financial services for potential and 

5 existing minority-owned and women-owned cannabis6 related legitimate businesses. 

Æ 


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