Nicholas Bixler Explains Why a Pending Florida Supreme Court Decision Could Result in a Bonanza for Insurers of Medical Marijuana Clinics
Hinshaw's Nicholas Bixler authored a byline in the Daily Business Review titled "Cannabis: Florida's Growing Insurance Industry?" In the article, Bixler addresses Fla. Dep't of Health v. Florigrown, LLC, a case accepted for review by the Florida Supreme Court. At issue in the case is whether the vertical integration structure for licensed medical marijuana treatment clinics (MMTCs) mandated by Florida law conflicts with the Florida Constitution. In an August decision, Florida's First District Court of Appeal determined the vertical integration mandate conflicted with Florida Constitution, Art. X Section 29(b)(5).
Bixler explains how the vertical integration requirement currently necessitates MMTCs to insure all aspects of the supply chain, a significant financial burden. However, a ruling against these seed-to-sale integration requirements would allow MMTCs to just focus on a particular aspect of the supply chain, thus lowering their exposure to insurable risk. It could also prompt the state to reconsider its statutory cap on the number of MMTCs. Both of these outcomes would inevitably lead to an increased need for cannabis insurance products, meaning that in the near future, cannabis insurance in Florida's billion-dollar industry could become a "true cash crop" for insurance providers.
Read the full article on the DBR website (subscription may be required)
"Cannabis: Florida's Growing Insurance Industry?" was published by the Daily Business Review on November 13, 2019.