30 Sept 2016
Here’s the introduction to the piece and link
With Colorado’s July 2016 legalized marijuana sales reaching $122.7 million and nationwide annual sales to exceed $7 billion, insurance coverage should be plentiful and easily obtained.
Instead, carriers are exiting the market, premium costs are increasing, and claims are being denied.
Despite bellwethers Lloyd’s of London and Mutual of Omaha’s negative stance, favorable opinions such as Green Earth Wellness Center v. Atain Specialty Insurance, 13-CV-03452 (D. Colo. Feb. 17), and options like captive insurance suggest that robust and accessible coverage is on the horizon.
Also in H&F’s latest weekly update
OCTOBER 1ST: ONE OUNCE EQUIVALENCY RULE TAKES EFFECT
Per industry bulletin 15-12, Rule R 402 (C) 1.5 becomes effective October 1, 2016. This rule states:
“Sales Transaction to a Colorado Resident. This subparagraph (C)(1.5) is effective beginning January 1, 2016. A Retail Marijuana Store and its employees are prohibited from selling more than one ounce of Retail Marijuana flower or its equivalent in Retail Marijuana Concentrate or Retail Marijuana Product during a sales transaction to a Colorado resident.
a. One ounce of Retail Marijuana flower shall be equivalent to eight grams of Retail Marijuana Concentrate.
b. One ounce of Retail Marijuana flower shall be equivalent to 80 ten milligram servings of THC in Retail Marijuana Product.”
In other words, a retail customer may purchase one ounce of flower OR eight grams of concentrateOR 800 mg of infused product. Customers may also mix and match but the aggregate must remain within compliance of the one ounce of flower equivalency. So, for example, a customer could purchase a half ounce of flower, two grams of concentrate, and 200 mg of infused product. Or, that customer could purchase four grams of concentrate and 400 mg of infused product. There are a wide range of possible purchase combinations, but all purchases must be equivalent to one ounce or less of flower.