A major insurance company in the United States apparently has a policy of its own: It won’t provide life insurance to people in the legal marijuana industry.
The affair raises broader issues about the ability of marijuana industry employees and executives to secure life insurance and other benefits.
The issue came to light when Derek Peterson, the CEO of Terra Tech, tried to obtain a life insurance policy from Mutual of Omaha, and was denied. In a letter to Peterson, the company stated explicitly that the reason for the denial is because Terra Tech is a cannabis company.
“We cannot accept premium(s) from individuals or entities who are associated with the marijuana industry,” reads the denial letter, which was dated June 13, according to U.S. News and World Report.
Peterson called the rejection “ridiculous and archaic at this point,” despite already having endured plenty of bank account closures – a common problem for those in the marijuana trade.
Terra Tech has marijuana business interests in California and Nevada, and Peterson acknowledged on his policy application that he uses cannabis personally. Now, however, he’s concerned that it will be difficult to obtain further benefits for his employees.