With the legalization of recreational marijuana in many states, how are individual disability insurance carriers underwriting clients who use it recreationally? Is it still a decline?

We surveyed our carriers. We learned that many carriers often decline applicants who use medical marijuana, but need to know the complete details of the case. However, some carriers views of recreational marijuana have changed in recent years, depending on the frequency of use. As always, underwriters consider each application on case-by-case basis depending on the specific details.

The carriers’ guidelines for medical and recreational marijuana use below should not be construed as underwriting decisions but as pre-underwriting suggestions:

Standard Insurance

Medical marijuana: Generally a decline, but consideration may be possible on a highly modified basis subject to details.

Recreational marijuana:  Dependent on the frequency.  Some occasional use can be okay, frequent use is a decline, and moderate use falls in between with modifications.  The underwriter also looks at other factors like mental health history, driving history, etc.  If combined with those, they may decline on offering.

Principal Insurance

Recreational and medical marijuana use:

• Less than 4 times per month–Standard.
• 4 to 12 times per month– +50% rating
• More than above—Decline.

Ameritas

Medical marijuana: Need to know complete details of the medical history.

Recreational marijuana: Limited recreational use may be standard, but as frequency increases likely place a rating.

Berkshire

Medical marijuana: If they have medical diagnosis in order to obtain the drug, then that would have to be determined during the underwriting in obtaining medical records.

Recreational marijuana: Allows  a non-tobacco rate for recreational marijuana use unless there is an actionable history of nicotine use.

Peterson International

Medical marijuana: Need to know the reason they are taking it if they take it for a medical condition.

Recreational marijuana: Carrier has a built in Drug and Alcohol exclusion in its policies.

FSL

Recreational and medical marijuana use: Smokers rates apply.

If the client is using the marijuana to treat a specific condition, carrier would exclude for that condition.

Mass Mutual

Medical marijuana: Generally a decline, but it would depend on the specific medical issue and the frequency of use.

Recreational marijuana use:

• 4 times per month = Standard
• 8 times or less per month:
• Age 30 or younger = 5 year benefit period, 30% rating and no FIO, AIB, BIR or COLA
• Over age 30 = 30% rating and no FIO, AIB or BIR
• Over 8 times per month = Decline

Mutual of Omaha

Medical marijuana is a decline.

Recreational marijuana depends on frequency of use. This can be a decline if using daily, or standard if using every once in a while, depending on the case.

Learn more about pre-underwriting disability income applications, contact Steve Crowe at ext. 222, Alyssa Sollenberger at ext. 235, Destinee Myers at ext. 234,  Brian Hettmansperger at ext. 230, Chris Bussey at ext. 220, or request a quote.