Creates certain protections for insurers and insurance producers engaging in business of insurance in connection with cannabis-related businesses.

S4018

SENATE, No. 4018

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MARCH 19, 2026

Sponsored by:

Senator� JOSEPH F. VITALE

District 19 (Middlesex)

SYNOPSIS

���� Creates certain protections for insurers and
insurance producers engaging in business of insurance in connection with
cannabis-related businesses.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act

concerning insurance and cannabis-related
businesses and supplementing P.L.2009, c.307 (C.24:6I-1 et seq.).

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� As used in this act:

���� �Cannabis-related business�
means any person that participates in any business or organized activity that
involves handling cannabis or cannabis products, including cultivating,
producing, manufacturing, selling, transporting, displaying, dispensing, distributing,
or purchasing or facilitating the purchase of cannabis or cannabis products,
and engages in that activity pursuant to a law established by the State of New
Jersey.

���� �Insurer� means an insurance
company authorized to issue insurance under the laws of this State.

���� �Insurance producer� means the
same as that term is defined in section 3 of P.L.2001, c.210 (C.17:22A-28).

���� 2.��� Notwithstanding any law
to the contrary, a State or local government agency shall not:

���� a.���� prohibit, penalize, or
otherwise discourage an insurer or insurance producer from engaging in the
business of insurance in connection with a cannabis-related business;

���� b.��� terminate, cancel, or
otherwise limit the policies of an insurer solely because the insurer or
insurance producer has engaged in the business of insurance in connection with
a cannabis-related business;

���� c.���� recommend, incentivize,
or encourage an insurer or insurance

producer not to engage in the
business of insurance in connection with a policyholder, or downgrade or cancel
the insurance and insurance services offered to a policyholder solely because
the policyholder is or becomes the owner, operator, or employee of a cannabis-related
business; or

���� d.��� take any adverse or
corrective supervisory action on an insurance policy against:

���� (1)�� a cannabis-related
business, solely because the owner or operator owns or operates a
cannabis-related business;

���� (2)�� an employee, owner, or
operator of a cannabis-related business, solely because the employee, owner, or
operator is employed by, owns, or operates a cannabis-related business, as
applicable; or

���� (3)�� an owner or operator of
real estate or equipment that is leased to a cannabis-related business, solely
because the owner or operator of the real estate or equipment leased the
equipment or real estate to a cannabis-related business, as applicable.

���� 3.��� An insurer or insurance
producer that engages in the business of insurance with a cannabis-related
business or who otherwise engages with a person in a transaction permissible
under State law related to cannabis, and the officers, directors, and employees
of that insurer or insurance producer shall not be held liable pursuant to any
State law or regulation:

���� a.���� solely for engaging in
the business of insurance; or

���� b.��� for further investing
any income derived from that business of insurance.

���� 4.��� Nothing in this act
shall:

���� a.���� require an insurer or
insurance producer to engage in the business of insurance in connection with a
cannabis-related business; or

���� b.��� interfere with the
regulation of the business of insurance pursuant to current law, except as
expressly provided in this act.

���� 5.��� This act shall take
effect on the 90th day next following enactment.

STATEMENT

���� This bill creates certain
protections for insurers and insurance producers engaging in the business of
insurance in connection with cannabis-related businesses.

���� Specifically, the bill
provides that, notwithstanding any law to the contrary, no State or local
government agency may:

���� (1)�� prohibit, penalize, or
otherwise discourage an insurer or insurance producer from engaging in the
business of insurance in connection with a cannabis-related business;

���� (2)�� terminate, cancel, or
otherwise limit the policies of an insurer solely because the insurer or
insurance producer has engaged in the business of insurance in connection with
a cannabis-related business;

���� (3)�� recommend, incentivize,
or encourage an insurer or insurance producer not to engage in the business of
insurance in connection with a policyholder, or downgrade or cancel the
insurance and insurance services offered to a policyholder solely because the policyholder
is or becomes the owner, operator, or employee of a cannabis-related business;
or

���� (4)�� take any adverse or
corrective supervisory action on an insurance policy against a cannabis-related
business or a person that does business with or is employed by a
cannabis-related business, solely because the business or person owns or
operates or does business with or is employed by a cannabis-related business,
as applicable.

���� The bill provides that
insurers and insurance producers, and the officers, directors, and employees of
insurers and insurance producers, that engage in the business of insurance with
a cannabis-related business or who otherwise engage with a person in a
transaction permissible under State law related to cannabis, may not be held
liable pursuant to any State law or regulation solely for engaging in the
business of insurance, or for further investing any income derived from that
business of insurance.

���� The bill also provides that
nothing in the bill requires an insurer or insurance producer to engage in the
business of insurance in connection with a cannabis-related business and that
it does not interfere with the regulation of the business of insurance pursuant
to current law, except as expressly provided in the bill.