By Antonita Madonna, Regulatory Intelligence The legal use of marijuana could increase substantially by the end of the year as several U.S. states, including California, vote on its use for recreational or medical purposes. This could open new markets for insurance coverage in areas including property and casualty and health. However, insurers, principally regulated by the states, are unlikely to step in while federal regulations still criminalize use of the drug.
More than 25 states and the District of Columbia have legalized the use of marijuana for medical or recreational purposes. It remains banned under Schedule I of the Controlled Substance Act at the federal level, “with no currently accepted medical use and a high potential for abuse.”