Post: Cannabis insurance company wants out of potency claims

The case claims vapes are not smokable products because they don’t combust and should be held to lower THC limits.

Cannabis company insurer Admiral Insurance Co. filed a complaint with the U.S. District Court for the Northern District of Illinois stating that it should not have to cover a Shelbyville dispensary in a suit alleging that it mislabeled its products to get around the state’s limits on THC. The case

Shelby County Community Services (Shelby) and SCCS Solutions Corp., along with other cannabis companies, were targeted in a series of lawsuits filed by attorneys Laura Luisi and Jamie Holz of Luisi Holz Law. The cases allege that these companies sell cannabis-infused products that are mislabeled to avoid state laws limiting the total THC that can be sold in such products.

Shelby is believed to be the parent, alter-ego and/or an affiliate of SCCS. The case against Shelby began in December 2024 when Stefania Morgante filed a complaint against the company alleging the company sold products that surpassed the legal THC limits in the state.

According to Morgante’s complaint, SCCS sells Rick Simpson Oil (RSO), a type of cannabis oil infused with THC, in 0.5-gram (500 mg) and 1-gram (1,000 mg) packages that are promoted as cannabis concentrate. Under Illinois law, the maximum limit for one package is no more than 100 milligrams, containing servings of no more than 10 milligrams each. Thus these packages with 100 milligrams of THC typically contain 10 individual servings containing 10 milligrams each. Morgante is a cancer survivor who uses RSO as part of her cancer treatments. She purchased one or more of SCCS’ Cuvee RSO Products, which are allegedly advertised as cannabis concentrate. She claims the label indicated no serving size, and the syringe inside the label stated: “FOR ORAL/EXTERNAL USE.”

She also claims that the company knowingly and/or recklessly misclassified the products to avoid the regulations associated with cannabis-infused products, allowing them to sell more products on a per transaction basis, subject to the higher recreational purchasing limits allowed for cannabis concentrates. Not covered

Admiral says it shouldn’t have to cover the claims because Morgante is […]

Cannabis insurance company wants out of potency claims