Navigating the Complexities of Alcohol and Marijuana in Life Insurance Claims

Alcohol and marijuana often complicate life and accidental death and dismemberment (AD&D) insurance claims. While alcohol-related claims benefit from federal standards and a clear testing protocol, marijuana’s varying legality and lack of standardized impairment levels create ambiguity. A case involving a policyholder who drowned after consuming alcohol exemplifies how decomposition can affect blood alcohol concentration (BAC) and complicate claims. Additionally, marijuana’s unpredictable effects due to THC storage in body fat, along with state-specific regulations, make claim decisions difficult.

The insurance industry faces challenges from inconsistent policy language, varying state laws, and a lack of standardized testing for marijuana. Insurers must closely examine documentation, including death certificates and toxicology reports, to make informed decisions. While alcohol’s impact is well-understood, marijuana-related claims remain uncertain, and future reclassification by the DEA could lead to more standardized handling.