Title: CLAIM Act
Policy area: Finance and Financial Sector

Summary:
Clarifying Law Around Insurance of Marijuana Act or the CLAIM Act
This bill generally provides a safe harbor from penalties or other adverse agency action for insurance companies that provide services to cannabis-related businesses in jurisdictions where such activity is legal.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 2201 Introduced in Senate (IS)]

<DOC>






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.

    Be it enacted by the Senate and House of Representatives 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:
            (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 organized 
                activity that involves handling cannabis or cannabis 
                products, including cultivating, producing, 
                manufacturing, selling, transporting, displaying, 
                dispensing, distributing, or purchasing cannabis or 
                cannabis products or distributing or deriving any 
                proceeds, directly or indirectly, from cannabis or 
                cannabis products; or
                    (ii) provides--
                            (I) any financial service, including 
                        retirement plans or exchange traded funds, 
                        relating to cannabis; or
                            (II) any business services, including the 
                        sale or lease of real or any other property, 
                        legal or other licensed services, or any other 
                        ancillary service, relating to cannabis.
            (4) Federal agency.--The term ``Federal agency''--
                    (A) has the meaning given the term ``Executive 
                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.
            (6) Indian country.--The term ``Indian country'' 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 ``manufacturer'' means a person 
        or company who manufactures, 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 insurance in connection with--
                    (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 policies of 
        an insurer solely because the insurer has engaged in the 
        business of insurance in connection with a cannabis-related 
        business;
            (3) recommend, incentivize, or encourage an insurer not to 
        engage in the business of insurance in connection with a 
        policyholder, or downgrade or cancel 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 employee, 
                owner, or operator of a cannabis-related business; or
                    (C) the insurer was not aware that the policyholder 
                is an employee, owner, or operator of a cannabis-
                related business; or
            (4) take any adverse or corrective supervisory action on a 
        policy to--
                    (A) a cannabis-related business, solely because 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 respect 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 purchase of 
cannabis pursuant to a law (including regulations) of such State, 
political subdivision, or Indian Tribe that has jurisdiction over the 
Indian country, as applicable, 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 permissible 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 regulations)--
            (1) solely for engaging in the business of insurance; or
            (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.).
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