Regulatory Alerts2017-01-01 | Bulletin 2017-4Bulletin 2017-4: Clarifying Coverage for Marijuana Items and Activities
The Oregon Division of Financial Regulation issued Bulletin DFR 2017-4 to require property and casualty insurers to explicitly state in their policies whether marijuana items and activities are covered or excluded. Because Oregon state law permits marijuana while federal law prohibits it, the bulletin mandates that general exclusions for illegal substances or activities are legally insufficient and may constitute unfair claims settlement practices if used to deny coverage. Insurers must follow a phased twelve-month compliance schedule, issuing initial notices to policyholders within ninety days and embedding explicit exclusionary language into all renewed or newly issued policies within one year.
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