legal limits / news / CBD v. THC
In Part II of a series on insuring cannabis for Law360, Jodi Green provided a deep dive into the distinction between cannabis and hemp, the 2018 Farm Bill, and the legal and insurance implications of insuring hemp and CBD products.
The 2018 Farm Bill effectively legalized hemp by removing it from the federal Controlled Substances Act, so long as the hemp products contain “less than 0.3% THC.” CBD, or cannabidiol, also became legal, but the story doesn’t end there. Although legal, CBD is regulated by the FDA, which means that selling CBD products is extremely tricky. To date, the only CBD product that has received FDA approval is Epidiolex, a CBD drug used to treat epilepsy. In turn, the FDA has denied applications by CBD brands, including Charlotte’s Web, to be marketed as dietary supplements.
As a result of the conflicting guidance regarding the distinction between CBD and cannabis products, the insurability of cannabis products, including hemp products, remains complex.
Find the full text of the article here, or reach out to us for more information about this content: https://www.law360.com/articles/1167267/insuring-the-ever-growing-cannabis-industry-part-2