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
Is The Admitted Insurance Market Ready to Insure Pot?
The Golden State Could Be a Game Changer for the Marijuana Insurance Industry
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Breaking news out of California when
The Californian reported California Insurance Commissioner Dave Jones wants admitted insurance carriers to insure marijuana. This will not be an easy task for Commissioner Jones considering the fact Lloyds of London does not offer insurance to the marijuana industry.
For those who may not know, admitted insurance carriers are well known companies approved and subjected to regulation by the state in which they operate. Admitted insurance carriers are typically companies like Travelers, Hartford, Farmers, and State Farm to name just a few. Historically, these companies have no interest in insuring marijuana.
Currently, the cannabis insurance industry purchases insurance through the non-admitted insurance markets. There is less competition, more
stringent underwriting, and limited coverage offerings. For example, product liability and directors and officers insurance is extremely difficult to procure. The few insurance carriers offering the coverage ...more
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