The Oregon Department of Consumer and
Business Services, Division of Financial Regulation (“Division”) has issued a draft
bulletin titled “Clarifying Coverage for Marijuana Items and Activities”. Because the production, processing, sale, and
use of medical and recreational marijuana are legal in Oregon, but are
prohibited by federal law, the Division believes that general exclusionary
language in property and casualty policies (such as exclusions for illegal
substances or illegal activities) may not be sufficient to clearly define what
is covered in a policy. The Division’s bulletin is intended to provide guidance
on drafting policy language that explicitly states whether marijuana items and
marijuana activities are covered or excluded, and whether marijuana activities
are considered illegal activities under the policy.
has submitted comments in response to this draft bulletin. A follow-up Advisory will be distributed once
the bulletin has been finalized and issued by the Division.
AAIS Bulletin Comments