Hello readers: Here we are again, discussing Delta-8 THC as well as other artificially developed cannabinoids and why insurance carriers need to be watchful.

The Oregon Liquor Commission (Oregon is a trendsetter being in the legal canna biz for a long time relatively speaking) recently set down new administrative rules as promulgated by HB:3000(2021). This was a LONG-AWAITED decision, because the original regs were a cover on ALL artificial products. The new rules are more flexible and DO allow for some OLCC licensees and dispensaries to be seller/producers and the rules apply only to those currently approved by the commission.

1. Delta-8 has been peer-reviewed and approved by 3 sources.
2. The artificially derived product IS NOT intended for human inhalation.
3. The industry has shown an FDA letter suggesting they have no interest in this product.
4. The FDA has been advised this product falls into the regs as a dietary product and the industry has received a GRAS (Generally Recognized as Safe) letter from the FDA. The illusion here is that this is a hemp derived product and thus legal in all 50 states since the 2018 Farm Bill.

The Oregon licensees have until July 1, 2022, to sell off their current stock containing artificial cannabinoids and can only transfer them when:

1. They were manufactured before 1/1/2022
2. There were no potency additives included
3. The product complies with the administrative rules (OAR 845-025-1310(4).

In addition to the above requirements all products must clearly state that the word “artificial” is on all packaging.

Now why are we discussing these issues? Simple. The regulations on a state-by-state review are different and complicated and soon will have to conform to the Federal regs being promulgated. Insurance is regulated by the states and coverage issues will arise when there are lawsuits filed because of untoward events after ingestion.

Please be certain that your carriers are aware of Oregon’s stepping in on the Delta-8 products’ dangers, because their example will be used in cases where claims are made due to nefarious actions/behavior after ingestion of D-8 products. We have written about this writer’s experience with D-8 gummies: be warned and beware. Please look at the Oregon regs.

See you next time,

Michael B