What You Need to Know
- The federal government still outlaws the sale of marijuana.
- Many states now allow sales of marijuana for at least some purposes.
- Evergreen founders believe the company can accept cannabis earnings as a source of funds for paying premiums.
Evergreen Annuity & Life hopes to begin selling annuities and life insurance to cannabis company owners sometime next year.
The Ann Arbor, Michigan-based company is preparing to apply for permission from Michigan regulators to operate as a life insurer there.
Evergreen believes other states’ reciprocity agreements with Michigan will help it extend its footprint to six to 14 other states, according to a fact sheet the company has prepared for its investors.
If all goes as planned, the company could generate more than $250 million in new annualized premiums from life and annuity sales in 2022.
State Law v. Federal Law
Anthony Cloutier, one of the company’s three co-founders, said in an email interview that cannabis growers need a life insurer of their own because of a conflict between state and federal law on growers’ ability to use traditional financial services companies.
Some states, including Colorado, have passed laws authorizing the sale of marijuana for medical purposes, for recreational purposes or for all purposes.
The federal government still outlaws the sale of marijuana and classifies proceeds from the sale of marijuana as proceeds from the sale of unlawful activity. Life insurers have responded to the federal government’s views by declining to accept cannabis industry revenue as an acceptable source of funds for paying product premiums, Cloutier said.