When it comes to emerging risks, nowhere are they moreapparent than in the insurance industry. From cyber liability toproduct recalls to Ebola, the list of risks insurers mustanticipate for their clients is long and varied, and continues togrow.

A new issue insurers will be grappling with encompasses lossesinvolving illegal or medical marijuana. Possessing, using orgrowing marijuana is illegal under federal law, but many states arepassing laws that conflict with that statute. And while thegenerally accepted rationale for denying claims is whether or notthe loss is illegal under federal law, state statutes arechallenging that premise.

As a growing number of marijuana initiatives appear on stateballots, this provides a complex coverage dilemma for insurers.More drivers under the influence of drugs are getting behind thewheel of a car, increasing the risk of accidents for all. A recentsurvey by the National Highway Traffic Safety Administration foundthat the number of weekend nighttime drivers under the influence ofdrugs has increased to 20 percent since 2007. The survey also foundthat drivers under the influence of marijuana are more like to beinvolved in accidents.