Despite the legalization of medical marijuana use in 29 states plus the District of Columbia (D.C.), and the legality of recreational use in D.C. and eight states, marijuana remains a Schedule I banned controlled substance under the federal Controlled Substance Act of 1970.

Even in the states in which marijuana growth and use are legal, there are stark inconsistencies in the state laws, which has led to different legal outcomes in court decisions when the laws are tested.

Some insurers see the new marijuana laws as an opportunity to pursue new lines of coverage business in the billion-dollar marijuana industry. Others, however, are hesitant to take a foray into the new market due to the lingering risk of federal disapproval and uncertainty with the legality of insuring marijuana.

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