Federal law is an insurers best hope in such cases due to the U.S. Constitutions supremacy clause that favors federal over state laws when the two conflict, according to Johnston. State laws legalizing marijuana obviously conflict with the federal controlled substance act under which marijuana is illegal. Under President Barack Obama, the U.S. attorney general said as long as the state regulations are reasonable and the person complies with the state regulation, the federal government would not prosecute. However, it is unknown if the Trump Administration and Jeff Sessions, the new attorney general, will follow the Obama approach or begin enforcing the federal law on marijuana. We dont know whats going to happen? Johnston told the PLRB audience. What the Trump team does bears watching. A more hardline approach could see prosecutors going after users, producers and distributors under federal statutes, or filing civil suit to challenge state laws on the basis of preemption, Johnstonwrote in his report. Should that occur the ramifications for insurers and other industries serving the marijuana industry could be significant. He advised insurers on two ways they can get a marijuana-related An Overview Of Modern Claims Adjusters claim into federal court.
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