Bill Text: NJ A453 | 2024-2025 | Regular Session | Introduced
Bill Title: Creates certain protections for insurers and insurance producers engaging in business of insurance in connection with cannabis-related businesses.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced) 2024-01-09 - Introduced, Referred to Assembly Financial Institutions and Insurance Committee [A453 Detail]
Download: New_Jersey-2024-A453-Introduced.html
STATE OF NEW JERSEY
221st LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION
Sponsored by:
Assemblyman JOE DANIELSEN
District 17 (Middlesex and Somerset)
Assemblyman ROY FREIMAN
District 16 (Hunterdon, Mercer, Middlesex and Somerset)
Co-Sponsored by:
Assemblywoman Quijano
SYNOPSIS
Creates certain protections for insurers and insurance producers engaging in business of insurance in connection with cannabis-related businesses.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act concerning insurance and cannabis-related businesses and supplementing P.L.2009, c.307 (C.24:6I-1 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. As used in this act:
"Cannabis-related business" means any person that participates in any business or organized activity that involves handling cannabis or cannabis products, including cultivating, producing, manufacturing, selling, transporting, displaying, dispensing, distributing, or purchasing or facilitating the purchase of cannabis or cannabis products, and engages in that activity pursuant to a law established by the State of New Jersey.
"Insurer" means an insurance company authorized to issue insurance under the laws of this State.
"Insurance producer" means the same as that term is defined in section 3 of P.L.2001, c.210 (C.17:22A-28).
2. Notwithstanding any law to the contrary, a State or local government agency shall not:
a. prohibit, penalize, or otherwise discourage an insurer or insurance producer from engaging in the business of insurance in connection with a cannabis-related business;
b. terminate, cancel, or otherwise limit the policies of an insurer solely because the insurer or insurance producer has engaged in the business of insurance in connection with a cannabis-related business;
c. recommend, incentivize, or encourage an insurer or insurance producer not to engage in the business of insurance in connection with a policyholder, or downgrade or cancel the insurance and insurance services offered to a policyholder solely because the policyholder is or becomes the owner, operator, or employee of a cannabis-related business; or
d. take any adverse or corrective supervisory action on an insurance policy against:
(1) a cannabis-related business, solely because the owner or operator owns or operates a cannabis-related business;
(2) an employee, owner, or operator of a cannabis-related business, solely because the employee, owner, or operator is employed by, owns, or operates a cannabis-related business, as applicable; or
(3) an owner or operator of real estate or equipment that is leased to a cannabis-related business, solely because the owner or operator of the real estate or equipment leased the equipment or real estate to a cannabis-related business, as applicable.
3. An insurer or insurance producer that engages in the business of insurance with a cannabis-related business or who otherwise engages with a person in a transaction permissible under State law related to cannabis, and the officers, directors, and employees of that insurer or insurance producer shall not be held liable pursuant to any State law or regulation:
a. solely for engaging in the business of insurance; or
b. for further investing any income derived from that business of insurance.
4. Nothing in this act shall:
a. require an insurer or insurance producer to engage in the business of insurance in connection with a cannabis-related business; or
b. interfere with the regulation of the business of insurance pursuant to current law, except as expressly provided in this act.
5. This act shall take effect on the 90th day next following enactment.
STATEMENT
This bill creates certain protections for insurers and insurance producers engaging in the business of insurance in connection with cannabis-related businesses.
Specifically, the bill provides that, notwithstanding any law to the contrary, no State or local government agency may:
(1) prohibit, penalize, or otherwise discourage an insurer or insurance producer from engaging in the business of insurance in connection with a cannabis-related business;
(2) terminate, cancel, or otherwise limit the policies of an insurer solely because the insurer or insurance producer has engaged in the business of insurance in connection with a cannabis-related business;
(3) recommend, incentivize, or encourage an insurer or insurance producer not to engage in the business of insurance in connection with a policyholder, or downgrade or cancel the insurance and insurance services offered to a policyholder solely because the policyholder is or becomes the owner, operator, or employee of a cannabis-related business; or
(4) take any adverse or corrective supervisory action on an insurance policy against a cannabis-related business or a person that does business with or is employed by a cannabis-related business, solely because the business or person owns or operates or does business with or is employed by a cannabis-related business, as applicable.
The bill provides that insurers and insurance producers, and the officers, directors, and employees of insurers and insurance producers, that engage in the business of insurance with a cannabis-related business or who otherwise engage with a person in a transaction permissible under State law related to cannabis, may not be held liable pursuant to any State law or regulation solely for engaging in the business of insurance, or for further investing any income derived from that business of insurance.
The bill also provides that nothing in the bill requires an insurer or insurance producer to engage in the business of insurance in connection with a cannabis-related business and that it does not interfere with the regulation of the business of insurance pursuant to current law, except as expressly provided in the bill.
