marijuana de regulation case study rmi 2101

Please read and reference the articles under “Medical Marijuana – Topic 6” in the case studies folder on the bulk pack to answer this assignment. You will also have to do some research on your own to answer the questions. Please cite (a list of links is fine) the sources you used at the end of your assignment.

  1. Shortly describe how states are able to legalize marijuana when it is still illegal at the federal level. Be specific about the laws/memorandum that allow this. (1 pt)
  2. Name 3 specific TRM loss exposures that marijuana producers (i.e. growers and/or retailers) face unrelated to the legality of marijuana. (3 pts)
  3. For one of the 3 risks named, answer the following question: If there were no legal concerns, would traditional insurance be a good risk management technique? Why or why not? (reference each of the “requirements of an insurable risk”) (3 pts)
  4. How does the federal legal status impact how insurance works for marijuana-related businesses? Describe challenges/risks for both the insurer and the insured. (3 pts)
  5. If I buy legal, recreational-use marijuana when I am in Boston, I am charged an ATM fee if I use a debit card. Why do you think this happens? Think about banking laws. (1 pt)
  6. How have some states (specifically California) acted to help grow their marijuana-related insurance business? (1 pt)
  7. In one sentence, what is a captive insurer? (1 pt)
  8. How could captives be a useful alternative to traditional insurance for the marijuana industry? (2 pts)
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