cannabisnews.com: Insuring Medical Marijuana





Insuring Medical Marijuana
Posted by FoM on June 12, 2000 at 07:07:00 PT
By Edgar Sanchez, Bee Staff Writer 
Source: Sacramento Bee
Chris Miller was asleep when authorities raided his Citrus Heights home early one morning in March 1999."I woke up with a gun to my head," he recalled of that day, when he and his wife were arrested on charges of cultivating marijuana for illicit purposes. "I was told, 'Don't move!' "Miller, 48, said the pot was for his own medical use, and he fought for months until all the charges were dropped.
Now, he is engaged in a new battle: He's trying to persuade Allstate Insurance Co. to pay him about $9,000 for the loss of the 17 plants seized by Placer County sheriff's deputies from his Allstate-insured home.Miller maintains he was growing the pot under the provisions of Proposition 215, the successful 1996 California ballot measure that authorized medicinal use of marijuana.Allstate has offered Miller a settlement of $1,272, an amount he rejects."With that offer, after I get through with my legal fees and $500 deductible, I would be left with less than $75," Miller said.Because the claim hasn't been settled, Allstate cannot publicly discuss it, said Sue Francesconi, a spokeswoman for the company."I can assure you that we are working with Mr. Miller and his attorney in good faith and we are currently negotiating," Francesconi said. "We want to offer him a fair settlement ... and we will."Insurance claims for lost medical marijuana are "a new issue for insurance companies to grapple with," said Candysse Miller of the Insurance Information Network of California, a trade association for the property casualty industry."The law (Proposition 215) has only been on the books a short time ... and there are a lot of intangibles that really haven't been sorted out, such as proving the medical use of the marijuana and determining what the accurate price is," she said.Despite those issues, more and more insurers are reimbursing clients for destroyed or stolen medical pot, Candysse Miller said, adding that policies "vary from company to company."Because of the confidential nature of settlements, it's difficult to estimate how many there have been, she said.At least three beneficiaries live in the Sacramento area.Robert DeArkland, 71, of Fair Oaks became the first known Californian to receive such a reimbursement through his household insurance.Last summer, he received $6,500 from CGU California Insurance for 13 marijuana plants that were taken from his garage by Placer and Sacramento County sheriffs' deputies on Oct. 1, 1998. DeArkland, who has arthritis and prostate cancer, was charged with illegal possession and cultivation of pot. He sought reimbursement after charges were dismissed.In November, Ryan Landers collected $9,750 from Travelers Indemnity Co. for the theft of two pounds of pot by three gunmen who invaded his Sacramento apartment.Travelers, provider of his renter's insurance, sent him the check 11 days after the Nov. 4 home invasion."Travelers didn't even have the police report when it sent me the check," said Landers, 28, who has AIDS. "My settlement was quick ... I was very satisfied."An east Sacramento man who requested anonymity received $12,375 from CGU California Insurance after an armed intruder took three pounds of marijuana from his home in September. "It took about five months" to get the settlement, said the man, who has HIV. "I was lucky in that I was dealing with a company that had already awarded one settlement."Officials for CGU and Travelers declined to comment on their respective policies regarding medical marijuana reimbursements.For Chris Miller, who first planted it in a shed behind his home in August 1998, marijuana turned out to be a miracle drug. He said it abated the pain caused by arthritis and injuries he'd suffered in three disabling car and motorcycle accidents.When Placer County sheriff's deputies raided his home on March 18, 1999, they ignored a framed note from his doctor reading, "I recommend cannabis use for my patient, Chris Miller," Miller said.Miller and his wife, Penny, were booked into the Placer County jail and posted bail that night. By last fall, all charges against them had been dropped.The seized plants were returned to Chris Miller in November, but by that time the plants had no medicinal value because they were dead, he said.Late last year, Allstate notified Chris Miller that he was not covered for the loss of the plants, which ranged in height from 6 to 32 inches.When he continued to press the matter, he said he was subjected to "an examination under oath" concerning his plants. The questioning, conducted by an Allstate attorney named Jon D. Universal, who did not return a phone call from The Bee, lasted 21/2 hours, Miller said."I had to pay an additional $500 to have my attorney present during the examination," Miller said. "I've been treated like a second-class citizen because I use medical marijuana."If the Millers settle with Allstate, the company won't be breaking new ground for itself. Allstate has previously paid at least one claim for medical marijuana plants damaged during a fire along the West Coast, Francesconi said.The Millers also have filed suit in Sacramento federal court charging that the raid violated their civil rights.Seeking unspecified damages, the suit alleges the raid should never have taken place and was made worse because it was carried out in Sacramento County by Placer County deputies.Officials in Placer County did not respond to calls for comment.Published: June 12, 2000 Copyright © The Sacramento Bee CannabisNews Medical Marijuana Archives:http://cannabisnews.com/news/list/medical.shtml
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Comment #1 posted by Dan B on June 12, 2000 at 11:35:28 PT:
Unlikely Allies (Potentially)
Insurance companies are ranked high on the list of groups we love to hate. However, if this article is a hint of things to come (insurance companies reimbursing individuals for property stolen by the Feds), I wonder how many cases will have to be brought up before the insurance companies side with the marijuana consumers because they, too, would be losing money to the WoD. It would sure be nice to have allies with money and good lawyers.
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