Cannabis Exec Denied Life Insurance for...Being a Cannabis Exec
Derek Peterson, the CEO of TerraTech, a publicly traded cannabis company with operations in California and Nevada, recently took up what is usually a very boring task: applying for life insurance. However, his application was rejected. On June 13, he received a denial letter from his insurer of choice, Mutual of Omaha, with the following terse explanation:
"We have discontinued the processing of your application for insurance due to company policy. We cannot accept premium[sic] from individuals or entities who are associated with the marijuana industry. We are regulated by agencies of the."
The letter, which Peterson shared with The Stranger, ends without saying which agencies, if any, have regulations prohibiting cannabusiness employees from obtaining life insurance. One can only assume they are speaking about the federal government, which actually doesn't have direct regulatory influence over the insurance industry. The federal government can preempt state regulations it deems...
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