A potpourri of Hemp/CBD issues affecting insurance for the industry…
Hemp seed breeders must become more aware of the THC content in their products as CBD sales are rising exponentially. Harvesting a crop without going over the .3% THC limit has become increasingly more challenging as we reported in the last edition of Kanna Knowledge. Almost 95% of last year’s U.S. crop had to be scrapped because of this issue.
The insurance coverage issue is how much escaped into the market. Quantitative, academic, and certified laboratories should help; but so far cannabis company profits have superseded attention to regulatory issues, and insurers will be refusing coverage for higher THC infused CBD sold whether as a curative OR palliative.
A group of hemp and CBD sellers in Indiana notified a Federal district judge that they were dropping their legal challenge to two state laws that restricted the sale and distribution of smokable hemp. That activity had been a criminal offense there, but has been withdrawn because hemp/CBD was made legal by the Farm Act. One issue is how much money is being spent with lawyers and does insurance coverage apply?
In Oregon, a Federal judge adopted an earlier recommendation’s motion to dismiss Josephine County’s motion to dismiss claims brought by Justin Pitts. and recognized a Hemp lobbying group. The issue as reported by the judge is that there are no Federal constitutional provisions for the action.
A Florida company, Healthcare Resources Management Group, urged a Federal court to dismiss sanctions against two of its executives for trade secret infringement. The issue was about a topical cream and its asserted values that had been widely advertised.
Under the Hemp Access and Consumer Safety Act introduced by Senators Merkley and Paul this last session, consumable products would be regulated the same as other dietary/nutraceutical supplements. The FDA has yet to rule on this exception, as related to food, topicals and drinks, leaving these products in a legal gray area. The Senators have argued for an exemption because hemp is not THC infused beyond that .3%. The advertising agencies are overwhelmed with business as seen on all types of media.
While KRM reports on all aspects of the cannabis business, the larger emerging consumer market seems to be the population that does not use THC infused product. And this means that more cannabis businesses will necessarily pay increasingly more attention to the palliative products as the gross dietary supplement numbers are even now in the tens of billions. For us in the insurance market, we must also pay attention to the legal issues as discussed earlier and our whether our insurance coverages will be paying for the local and federal court action lawsuits. This remains an issue to be watched closely. Do ask your carriers about these items and see if they are in sync with what is happening in BOTH the recreational and palliative cannabis businesses.
That’s all for today: please write me at [email protected] with comments. See you next time and be safe …