Worker’s Comp, Liability, and Big Pot in the Great Lakes State

What is the impact of medical marijuana on the P&C insurance industry in Michigan? How has it affected workers’ compensation and auto insurance?

Workers Comp

By

By Michael P. Tremoglie
 
The Michigan Supreme Court ruled in May 2013 that driving while under the influence of medical marijuana is fine with them. But how has that affected workers compensation and auto insurance? What are the rules?
 
“The Michigan Workers’ Compensation Appellate Commission ruled that an insurer does not have to reimburse expenses for medical marijuana use,” said Bob Lapinski, spokesman for Accident Fund Holdings, a workers’ compensation specialist insurer headquartered in Lansing, Michigan.
 
Regarding injury-related costs from marijuana use, there is nothing definitive. “Each case is evaluated on its own merit,” indicated Lapinski.
 
There is no data available to indicate what the impact on claims has been.
 
“Concerning premium increases or an increase in claims resulting from the use of marijuana, the data is not sufficient at this time and it’s just too early to tell.

We, of course, will continue to closely monitor all the issues related to this,”
 added Lapinski. 
 
Lori Conarton, communications director for the Insurance Institute of Michigan in Lansing, confirmed the liberal nature of  auto coverage in relation to medical marijuana. “In Michigan, if I am driving under the influence and get into an accident, I would have coverage under liability for injuries I cause to others (up to my limits) and unlimited lifetime medical benefits for me under our no-fault system (unless I am driving my car uninsured).  To get liability from someone else who causes the accident, I have to meet a certain threshold (disability, death or serious impairment of body function),” she said. “Bottom line, there is no exclusion in our auto policies that voids the policy if you are operating under the influence.”  

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