-Caveat Lector-

Home insurance carriers reconsider marijuana reimbursement policies

By JUSTIN PRITCHARD, Associated Press

UKIAH, Calif. (July 30, 2001 3:44 p.m. EDT) - A growing number of medical
marijuana users whose homegrown pot plants were stolen by thieves or
taken by police have successfully gotten their insurance companies to
reimburse them for the loss.

The dollar amounts aren't huge: The pot is not supposed to be sold on the
street, where high-grade marijuana is more expensive than gold. However,
one insurer paid $12,375 to a man who lost three pounds of pot to an armed
intruder.

But just as medical marijuana was beginning to gain acceptance as an
insurable good, a recent ruling by the Supreme Court in an Oakland, Calif.,
case has cast doubt on the future of such payments.

The court ruled in May that clubs dispensing medical marijuana according to
state laws could not use a "medical necessity" defense against federal anti-
drug laws, which do not allow for medical marijuana.

The court didn't resolve the question of whether individual Americans have a
right to marijuana as a pain remedy.

Even so, State Farm will deny future claims for medical marijuana, and the
other insurers will give them renewed scrutiny, spokesmen said.

"It's clearly stated in the homeowners' policy that we will not pay for illegal
activities," said Lonny Haskins, the State Farm spokesman.

In September 1999, Robert DeArkland of Fair Oaks became the first person
known to be reimbursed for marijuana through household insurance. He
received $6,500 from CGU California Insurance for 13 marijuana plants
seized from his garage by sheriffs' deputies.

Insurers generally agree that marijuana becomes a homeowner's personal
property under state law when the policyholder has permission to grow or
possess it for medical reasons. That's possible in the eight states with state
laws allowing medical marijuana - California, Alaska, Arizona, Colorado,
Hawaii, Maine, Oregon and Washington.

Even though these laws are in conflict with federal law barring use or
possession of marijuana, major insurance companies have made at least a
dozen such reimbursements, according to a series of interviews by The
Associated Press. Most of the claims have been filed in California.

Medical marijuana advocates say insurers are treating the court ruling as
political cover, not legal precedent.

"If an insurance company is looking for an excuse to save a few dollars and
deny a claim, I suppose they can use the Supreme Court case as an
excuse," says Keith Stroup, executive director of the National Organization
for the Reform of Marijuana Laws.


Steve Wingate, Webmaster
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