I 
116TH CONGRESS 
1ST SESSION H. R. 4074 
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 HOUSE OF REPRESENTATIVES 
JULY 25, 2019 
Ms. VELA´ZQUEZ (for herself and Mr. STIVERS) introduced the following bill; 
which was referred to the Committee on Financial Services 
A BILL 
To create a safe harbor for insurers engaging in the business 
of insurance in connection with a cannabis-related busi-
ness, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Clarifying Law Around 
Insurance of Marijuana Act’’ or the ‘‘CLAIM Act’’. 
SEC. 2. SAFE HARBOR FOR INSURERS AND THE BUSINESS 
OF INSURANCE. 
(a) DEFINITIONS.—In this Act: 
VerDate Sep 11 2014 
20:04 Aug 14, 2019
Jkt 034408
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H4074.IH
H4074
Pbinns on DSK79D2C42PROD with BILLS
(1) CANNABIS.—The term ‘‘cannabis’’ has the 
meaning given the term ‘‘marihuana’’ in section 102 
of the Controlled Substances Act (21 U.S.C. 802). 
(2) CANNABIS PRODUCT.—The term ‘‘cannabis 
product’’ means any article that contains cannabis, 
including an article that is a concentrate, an edible, 
a tincture, a cannabis-infused product, a topical, or 
a flower. 
(3) CANNABIS-RELATED BUSINESS.—The term 
‘‘cannabis-related business’’ means a manufacturer, 
producer, or any person or company that— 
(A) engages in any activity described in 
subparagraph (B) pursuant to a law established 
by a State or a political subdivision of a State; 
(B)(i) participates in any business or orga-
nized activity that involves handling cannabis or 
cannabis products, including cultivating, pro-
ducing, manufacturing, selling, transporting, 
displaying, dispensing, distributing, or pur-
chasing cannabis or cannabis products or dis-
tributing or deriving any proceeds, directly or 
indirectly, from cannabis or cannabis products; 
or 
(ii) provides— 
VerDate Sep 11 2014 
20:04 Aug 14, 2019
Jkt 034408
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H4074.IH
H4074
Pbinns on DSK79D2C42PROD with BILLS
(I) any financial service, including re-
tirement plans or exchange traded funds, 
relating to cannabis; or 
(II) any business services, including 
the sale or lease of real or any other prop-
erty, legal or other licensed services, or any 
other ancillary service, relating to can-
nabis. 
(4) FEDERAL
AGENCY.—The term ‘‘Federal 
agency’’— 
(A) has the meaning given the term ‘‘Exec-
utive agency’’ in section 105 of title 5, United 
States Code; and 
(B) includes a private attorney described 
in section 3002(1)(B) of title 28, United States 
Code. 
(5) FINANCIAL SERVICE.—The term ‘‘financial 
service’’— 
(A) means a financial product or service, 
as defined in section 1002 of the Dodd-Frank 
Wall Street Reform and Consumer Protection 
Act (12 U.S.C. 5481); and 
(B) includes the business of insurance. 
VerDate Sep 11 2014 
20:04 Aug 14, 2019
Jkt 034408
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H4074.IH
H4074
Pbinns on DSK79D2C42PROD with BILLS
(6) INDIAN COUNTRY.—The term ‘‘Indian coun-
try’’ has the meaning given the term in section 1151 
of title 18, United States Code. 
(7) INDIAN TRIBE.—The term ‘‘Indian tribe’’ 
has the meaning given the term in section 102 of the 
Federally Recognized Indian Tribe List Act of 1994 
(25 U.S.C. 479a). 
(8) INSURER.—The term ‘‘insurer’’ has the 
meaning given the term in section 313(r) of title 31, 
United States Code. 
(9) MANUFACTURER.—The term ‘‘manufac-
turer’’ means a person or company who manufac-
tures, compounds, converts, processes, prepares, or 
packages cannabis or cannabis products. 
(10) PRODUCER.—The term ‘‘producer’’ means 
a person who plants, cultivates, harvests, or in any 
way facilitates the natural growth of cannabis. 
(11) STATE.—The term ‘‘State’’ means each of 
the several States, the District of Columbia, Puerto 
Rico, and any territory or possession of the United 
States. 
(b) INSURERS.—A Federal agency may not— 
(1) prohibit, penalize, or otherwise discourage 
an insurer from engaging in the business of insur-
ance in connection with— 
VerDate Sep 11 2014 
20:04 Aug 14, 2019
Jkt 034408
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H4074.IH
H4074
Pbinns on DSK79D2C42PROD with BILLS
(A) a cannabis-related business; or 
(B) a State, political subdivision of a 
State, or Indian tribe that exercises jurisdiction 
over cannabis-related businesses; 
(2) terminate, cancel or otherwise limit the poli-
cies of an insurer solely because the insurer has en-
gaged in the business of insurance in connection 
with a cannabis-related business; 
(3) recommend, incentivize, or encourage an in-
surer not to engage in the business of insurance in 
connection with a policyholder, or downgrade or can-
cel the insurance and insurance services offered to a 
policyholder solely because— 
(A) the policyholder is— 
(i) a manufacturer or producer, or 
(ii) the owner, operator, or employee 
of a cannabis-related business; 
(B) the policyholder later becomes an em-
ployee, owner, or operator of a cannabis-related 
business; or 
(C) the insurer was not aware that the pol-
icyholder is an employee, owner, or operator of 
a cannabis-related business; or 
(4) take any adverse or corrective supervisory 
action on a policy to— 
VerDate Sep 11 2014 
20:04 Aug 14, 2019
Jkt 034408
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H4074.IH
H4074
Pbinns on DSK79D2C42PROD with BILLS
(A) a cannabis-related business, solely be-
cause the owner or operator owns or operates a 
cannabis-related business; 
(B) an employee, owner, or operator of a 
cannabis-related legitimate business or service 
provider, solely because the employee, owner, or 
operator is employed by, owns, or operates a 
cannabis-related business, as applicable; 
(C) an owner or operator of real estate or 
equipment that is leased to a cannabis-related 
business, solely because the owner or operator 
of the real estate or equipment leased the 
equipment or real estate to a cannabis-related 
business, as applicable. 
(c) PROTECTIONS UNDER FEDERAL LAW.—With re-
spect to engaging in the business of insurance within a 
State, political subdivision of a State, or Indian country 
that allows the cultivation, production, manufacture, sale, 
transportation, display, dispensing, distribution, or pur-
chase of cannabis pursuant to a law (including regula-
tions) of such State, political subdivision, or Indian Tribe 
that has jurisdiction over the Indian country, as applica-
ble, an insurer that engages in the business of insurance 
with a cannabis-related business or service provider or who 
otherwise engages with a person in a transaction permis-
VerDate Sep 11 2014 
20:04 Aug 14, 2019
Jkt 034408
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H4074.IH
H4074
Pbinns on DSK79D2C42PROD with BILLS
sible under State law related to cannabis, and the officers, 
directors, and employees of that insurer may not be held 
liable pursuant to any Federal law (including regula-
tions)— 
(1) solely for engaging in the business of insur-
ance; 
(2) for further investing any income derived 
from such business of insurance. 
(d) RULE OF CONSTRUCTION.—Nothing in this Act 
shall— 
(1) require an insurer to engage in the business 
of insurance in connection with a cannabis-related 
business; or 
(2) interfere with the regulation of the business 
of insurance in accordance with the Act of March 9, 
1945 (59 Stat. 33, chapter 20; 15 U.S.C. 1011 et 
seq.) (commonly known as the ‘‘McCarran-Ferguson 
Act’’) and the Dodd-Frank Wall Street Reform and 
Consumer Protection Act (12 U.S.C. 5301 et seq.). 
SEC. 3. GAO STUDY ON DIVERSITY AND INCLUSION. 
(a) STUDY.—The Comptroller General of the United 
States shall carry out a study on the barriers to market-
place entry, including in the licensing process, and the ac-
cess to financial services for potential and existing minor-
VerDate Sep 11 2014 
20:04 Aug 14, 2019
Jkt 034408
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H4074.IH
H4074
Pbinns on DSK79D2C42PROD with BILLS
ity-owned and women-owned cannabis-related legitimate 
businesses. 
(b) REPORT.—The Comptroller General shall issue a 
report to the Congress— 
(1) containing all findings and determinations 
made in carrying out the study required under sub-
section (a); and 
(2) containing any regulatory or legislative rec-
ommendations for removing barriers to marketplace 
entry, including in the licensing process, and ex-
panding access to financial services for potential and 
existing minority-owned and women-owned cannabis- 
related legitimate businesses. 
Æ 
VerDate Sep 11 2014 
20:04 Aug 14, 2019
Jkt 034408
PO 00000
Frm 00008
Fmt 6652
Sfmt 6301
E:\BILLS\H4074.IH
H4074
Pbinns on DSK79D2C42PROD with BILLS