If your loved one’s life insurance claim was denied due to marijuana use, you may be feeling blindsided—especially if cannabis is legal in your state. While insurers commonly cite drug exclusions or alleged misrepresentations on the application, not all denials are legally valid. Understanding how cannabis use impacts life insurance claims—and your legal options—can make the difference between walking away and winning the benefits your family deserves. If you need Maryland denied life claim lawsuit guidance call us.
Why Do Life Insurance Companies Deny Claims Involving Marijuana Use?
Insurers frequently reject claims based on marijuana-related factors using two primary arguments: the drug exclusion clause found in many policies, especially accidental death riders, and alleged “material misrepresentation” during the application process. Both tactics are controversial and often aggressively challenged in court.
A material misrepresentation occurs when an applicant fails to disclose relevant health or lifestyle information that the insurer deems significant in underwriting the policy. This includes questions about drug use—even if the substance in question, like cannabis, is legal for recreational or medical use in that jurisdiction.
Marijuana, Contestability Periods, and Misrepresentation Allegations
Most life insurance policies include a two-year contestability clause. During this time, if the insured dies, the insurance company can review the original application and supporting medical records to determine if any material facts were omitted or misstated.
If marijuana use was not disclosed, and records reveal consistent or prescribed cannabis use, the insurer may argue the omission constituted a misrepresentation. This could lead to rescission of the policy and full denial of the death benefit—even if the cause of death had nothing to do with marijuana.
But here’s where things get legally complex: what constitutes a misrepresentation varies by state law, and courts may not side with the insurer if marijuana use was legal at the time, especially for medicinal purposes. If the applicant was never asked directly about marijuana or had a valid prescription, a denial on these grounds can often be challenged successfully.
What About Medical Marijuana?
More than 35 states have legalized the use of medical marijuana, yet insurance companies are not always required to honor claims involving it. Even when cannabis is used with a valid prescription, insurers may still deny a life insurance payout if:
The applicant did not disclose their usage during underwriting
The medical marijuana was deemed to contribute to the death
A drug exclusion clause applies and is interpreted to include cannabis
These scenarios frequently spark legal disputes, particularly if the policyholder had a qualifying condition and used cannabis within the bounds of state law. Our attorneys have seen insurers attempt to broadly interpret drug exclusions—even when the insured died of unrelated causes.
Understanding Drug Exclusions in Accidental Death Policies
Many accidental death and dismemberment (AD&D) riders contain specific drug exclusion clauses. These provisions state that if the insured dies as a result of using illegal drugs, the benefit will not be paid. However, this clause becomes murky with marijuana because:
It may be legal in the insured’s state, but still federally illegal
The insured may have used a cannabis product recreationally without impairment
The insurer may use toxicology reports to connect the death to cannabis, even if it played no direct role
For example, if someone died in a car accident and had THC in their system, the insurer might argue that marijuana intoxication was a factor, even if fault for the accident was unclear or the cannabis level was negligible. These denials are not always valid—and many are overturned with proper legal representation.
We Fight Denied Marijuana Related Life Insurance Claims
Our life insurance attorneys challenge wrongful denials involving marijuana use, prescription cannabis, and broad drug exclusions. We have successfully reversed denials involving:
Contestability challenges related to undisclosed medical marijuana use
Claims denied after minor cannabis findings in toxicology reports
AD&D exclusions misapplied to marijuana use in legal states
Each case is different, but if your claim was delayed or denied due to marijuana use—don’t accept the insurer’s reasoning without a fight. You may still be entitled to the full death benefit.
Contact us today.