CEO of Marijuana Business Denied of a Life Insurance Coverage
Terra Tech is California and Nevada’s grower and seller of cannabis. And this is known to be the largest burgeoning pot industry of the country. Everything has been going well in this business only until its CEO; Derek Peterson got denied for a life insurance coverage, simply because of the nature of his work. This is somewhat surprising considering that even marijuana users today enjoy the privilege of a life insurance coverage, what difference would this be for an ordinary cannabis plantation employee?
Mr. Peterson choose the best life insurance policy by comparing offers and ended up applying to a Fortune 500 insurance company; Mutual of Omaha. But they sent him a letter instead informing him that his application was denied. On the letter it says; “We do not offer premiums to any applicant who have association to marijuana industry”. This is despite the fact that they are willing to insure applicants who are marijuana users. In fact, they have been reputed to offer good rates to them.
Cannabis users are often classified on the same level of category with that of cigarette smokers, regardless in the degree of harm they inflict to the person. Meanwhile of Mutual of Omaha even offer a non-tobacco smoker rate to marijuana users considering that their cannabis consumption is only limited to once per week. When a spokesman of Mutual of Ohawa was asked about applicants who smoke marijuana, he only stated that the act of using marijuana is not enough ground for the applicants’ automatic exclusion.
To Mr. Peterson, he expressed frustration over his situation when he said; if the insurance company will insure a marijuana user, what is the problem with an applicant who operates a business following the state laws?”
On the letter of Mutual of Omaha, the company tried to justify their rejection when it stated; “We are regulated by the agencies of the”, sounding like they have arrived with such decision due to federal prohibition.
But for Mr. Peterson, the decision of the insurance company is hard to understand since he claimed that they are paying federal taxes and follow SEC rules.
“I believe that the decision of Mutual of Omaha boils down to the old archaic beliefs on marijuana. However, things have already changed these days and cannabis has gotten so much better. I have the feeling the this company has made an internal decision when it opted to deny my application”, Mr. Peterson said.