First surety bond program for cannabis industry approved by insurance commissioner
Greenpoint Insurance Advisors, LLC
FOR IMMEDIATE RELEASE:
February 21, 2018 (#021)
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SACRAMENTO, Calif. — Insurance Commissioner Dave Jones announced today he has approved the first surety bond program for the cannabis industry in the State of California. Continental Heritage Insurance Company is the first insurer in the state to be approved to offer surety bonds for the cannabis industry.
“Cannabis businesses should have insurance coverage available to them just like any other Califor...more
Application to Open a California Cannabis Company Includes the Purchase of a Licensing Bond
California Requirements: Licensing Bonds for Cannabis Businesses
The Bureau of Cannabis Control has indicated through the California Code of Regulations a bond will be needed as part of the annual license application requirements under Section 5002. This means retailers, cultivators, manufacturers, distributors, laboratory testing, and microbusinesses will need to buy a bond.
Section 5008 (Bond) of the code states:
A bond is a type of insurance product with features of a loan. The face amount of the bond is paid to the party requesting their interests be protected based on certain conditions. In this situation, the State of Caifornia. Bonds are priced based on credit history, net worth, and business experience with the premium is paid annually.
Demand is likely to be strong for finding the right type of bond. Therefore, applicants are encouraged to begin the process early.
For more information, please visit Californiamarijuanabond.com
...more
First Admitted Marijuana Insurance Carrier in the Nation Approved in California to Sell Pot Coverage
Golden Bear Insurance Co. will likely take a Big Bite out of Existing Non-Admitted Insurance Markets
Well, it finally happened with Golden Bear Insurance Company was approved by the California Department of insurance to offer coverage through an admitted insurance program for marijuana companies. This is a really big deal for those of us who specialize in marijuana insurance because historically, this line of insurance was offered only from "non-admitted carriers" specializing in "high" risk. This will be a bigger deal to the marijuana industry as they begin to benefit from either better pricing, coverage availability, and friendlier claims practices.
The primary difference between admitted versus non-admitted carriers is admitted are approved by the Department of Insurance through what is known as a rate filing. This means their policy forms, underwriting, and pricing are reviewed by a regulatory agency before approved and offered to the public. The non-admitted insurance market avoids this approval process leaving the cannabis business with fewer options.
According to our sources, Golden Be...more
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