Bill
Bill > S1955
NJ S1955
NJ S1955Creates certain protections for insurers and insurance producers engaging in business of insurance in connection with cannabis-related businesses.
summary
Introduced
01/09/2024
01/09/2024
In Committee
01/09/2024
01/09/2024
Crossed Over
Passed
Dead
01/12/2026
01/12/2026
Introduced Session
2024-2025 Regular Session
Bill Summary
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.
AI Summary
This bill establishes protections for insurance companies (insurers) and insurance agents (insurance producers) that do business with cannabis-related businesses, which are defined as any entity involved in handling cannabis products like cultivation, sales, or distribution, as long as they operate legally under New Jersey law. Specifically, state and local government agencies are prohibited from penalizing or discouraging insurers and producers from working with these cannabis businesses, or from canceling or limiting policies solely because of this association. Furthermore, government agencies cannot recommend against working with cannabis businesses or penalize policyholders who own, operate, or are employed by such businesses, nor can they take adverse actions against a cannabis business or its employees or partners. The bill also shields insurers, producers, and their employees from liability under state law for engaging in insurance business with cannabis-related entities or for investing income derived from it, as long as these activities are permissible under state law. Importantly, this bill does not force any insurer or producer to do business with cannabis companies, nor does it alter existing insurance regulations beyond these specific protections.
Committee Categories
Business and Industry
Sponsors (1)
Last Action
Introduced in the Senate, Referred to Senate Commerce Committee (on 01/09/2024)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2024/S1955 |
| BillText | https://pub.njleg.gov/Bills/2026/S2000/1955_I1.HTM |
| BillText | https://pub.njleg.gov/Bills/2024/S2000/1955_I1.HTM |
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