Meg Nash Analyzes the Risks to Insurers in Catering to the Legal Marijuana Industry
Hinshaw attorney Meg Nash recently published an article titled "Evaluating Risk During Prohibition" in DRI's In-House Defense Quarterly. In the article, Nash reviews increased market demand for insurance products for a rapidly growing legal cannabis industry, and the hesitancy of major insurance carriers to enter this market while marijuana remains a controlled substance under federal law.
Nash discusses how the Ogden and Cole Memoranda and the Financial Crimes Enforcement Network (FinCEN) have "provided some comfort that federal prosecution is unlikely of individuals, entities, and financial institutions operating in legalized states and in compliance with state law." Nonetheless, Nash cautions all individuals and entities providing services to the legal marijuana industry to be aware of federal statutes that could "give rise to criminal liability," while encouraging insurers to closely monitor this evolving industry.
Download "Evaluating Risk During Prohibition" (PDF)