II 

116TH CONGRESS 

1ST SESSION S. 2201 

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

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

IN THE SENATE OF THE UNITED STATES 

JULY 22, 2019 

Mr. MENENDEZ (for himself, Mr. PAUL, Mr. MERKLEY, and Mr. CRAMER) 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 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: 


pamtmann on DSKBFK8HB2PROD with BILLS
2 

•S 2201 IS

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 that is a concentrate, an edible, 

7 a tincture, a cannabis-infused product, a topical, or 

8 a flower. 

9 (3) CANNABIS-RELATED BUSINESS.—The term 

10 ‘‘cannabis-related business’’ means a manufacturer, 

11 producer, or any person or company that— 

12 (A) engages in any activity described in 

13 subparagraph (B) pursuant to a law established 

14 by a State or a political subdivision of a State; 

15 (B)(i) participates in any business or orga16 nized activity that involves handling cannabis or 

17 cannabis products, including cultivating, pro18 ducing, manufacturing, selling, transporting, 

19 displaying, dispensing, distributing, or pur20 chasing cannabis or cannabis products or dis21 tributing or deriving any proceeds, directly or 

22 indirectly, from cannabis or cannabis products; 

23 or 

24 (ii) provides— 


pamtmann on DSKBFK8HB2PROD with BILLS
3 

•S 2201 IS

1 (I) any financial service, including re2 tirement plans or exchange traded funds, 

3 relating to cannabis; or 

4 (II) any business services, including 

5 the sale or lease of real or any other prop6 erty, legal or other licensed services, or any 

7 other ancillary service, relating to can8 nabis. 

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

10 agency’’— 

11 (A) has the meaning given the term ‘‘Exec12 utive agency’’ in section 105 of title 5, United 

13 States Code; and 

14 (B) includes a private attorney described 

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

16 Code. 

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

18 service’’— 

19 (A) means a financial product or service, 

20 as defined in section 1002 of the Dodd-Frank 

21 Wall Street Reform and Consumer Protection 

22 Act (12 U.S.C. 5481); and 

23 (B) includes the business of insurance. 


pamtmann on DSKBFK8HB2PROD with BILLS
4 

•S 2201 IS

1 (6) INDIAN COUNTRY.—The term ‘‘Indian coun2 try’’ has the meaning given the term in section 1151 

3 of title 18, United States Code. 

4 (7) INDIAN TRIBE.—The term ‘‘Indian tribe’’ 

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

6 Federally Recognized Indian Tribe List Act of 1994 

7 (25 U.S.C. 479a). 

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

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

10 United States Code. 

11 (9) MANUFACTURER.—The term ‘‘manufac12 turer’’ means a person or company who manufac13 tures, compounds, converts, processes, prepares, or 

14 packages cannabis or cannabis products. 

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

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

17 way facilitates the natural growth of cannabis. 

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

19 the several States, the District of Columbia, Puerto 

20 Rico, and any territory or possession of the United 

21 States. 

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

23 (1) prohibit, penalize, or otherwise discourage 

24 an insurer from engaging in the business of insur25 ance in connection with— 


pamtmann on DSKBFK8HB2PROD with BILLS
5 

•S 2201 IS

1 (A) a cannabis-related business; or 

2 (B) a State, political subdivision of a 

3 State, or Indian tribe that exercises jurisdiction 

4 over cannabis-related businesses; 

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

6 policies of an insurer solely because the insurer has 

7 engaged in the business of insurance in connection 

8 with a cannabis-related business; 

9 (3) recommend, incentivize, or encourage an in10 surer not to engage in the business of insurance in 

11 connection with a policyholder, or downgrade or can12 cel the insurance and insurance services offered to a 

13 policyholder solely because— 

14 (A) the policyholder is— 

15 (i) a manufacturer or producer; or 

16 (ii) the owner, operator, or employee 

17 of a cannabis-related business; 

18 (B) the policyholder later becomes an em19 ployee, owner, or operator of a cannabis-related 

20 business; or 

21 (C) the insurer was not aware that the pol22 icyholder is an employee, owner, or operator of 

23 a cannabis-related business; or 

24 (4) take any adverse or corrective supervisory 

25 action on a policy to— 


pamtmann on DSKBFK8HB2PROD with BILLS
6 

•S 2201 IS

1 (A) a cannabis-related business, solely be2 cause the owner or operator owns or operates a 

3 cannabis-related business; 

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

5 cannabis-related legitimate business or service 

6 provider, solely because the employee, owner, or 

7 operator is employed by, owns, or operates a 

8 cannabis-related business, as applicable; 

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

10 equipment that is leased to a cannabis-related 

11 business, solely because the owner or operator 

12 of the real estate or equipment leased the 

13 equipment or real estate to a cannabis-related 

14 business, as applicable. 

15 (c) PROTECTIONS UNDER FEDERAL LAW.—With re16 spect to engaging in the business of insurance within a 

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

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

19 transportation, display, dispensing, distribution, or pur20 chase of cannabis pursuant to a law (including regula21 tions) of such State, political subdivision, or Indian Tribe 

22 that has jurisdiction over the Indian country, as applica23 ble, an insurer that engages in the business of insurance 

24 with a cannabis-related business or service provider or who 

25 otherwise engages with a person in a transaction permisVerDate Sep 11 2014 05:38 Jul 26, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S2201.IS S2201

pamtmann on DSKBFK8HB2PROD with BILLS
7 

•S 2201 IS

1 sible under State law related to cannabis, and the officers, 

2 directors, and employees of that insurer may not be held 

3 liable pursuant to any Federal law (including regula4 tions)— 

5 (1) solely for engaging in the business of insur6 ance; or 

7 (2) for further investing any income derived 

8 from such business of insurance. 

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

10 shall— 

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

12 of insurance in connection with a cannabis-related 

13 business; or 

14 (2) interfere with the regulation of the business 

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

16 1945 (59 Stat. 33, chapter 20; 15 U.S.C. 1011 et 

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

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

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

Æ 


pamtmann on DSKBFK8HB2PROD with BILLS