The partnership will expand Novus’ presence in the cannabis health and life insurance industry by leveraging CannaLife’s life components as a value add to the Novus health distribution model. As a result of this deal, Novus will be the aggregator and CannaLife will be the administrator of writing new business under the name of Novus CannaLife.
The joint venture will provide for 50/50 revenue split and a 10% override fee to CannaLife to handle all administration of the writing business. This partnership allows Novus to expand the reach of its MedPlan products through CannaLife’s direct-to-consumer and institutional channels. These additional capabilities will complement the highly regarded adviser network that currently does business with Novus MedPlan. Both companies will continue to operate under their current brands and maintain their respective management teams and workforces.
“Novus is committed to growing our leadership position within the cannabis health insurance industry and maintaining our strong track record of success,” commented, Frank Labrozzi, Chairman and CEO, Novus. “This alliance allows us to reach more cannabis friendly Americans with much needed financial products and guidance. We admire the team at CannaLife, and look forward to helping them serve the needs of the company’s existing clients, as well as building new client relationships into the future.”
CannaLife CEO Ken Kaufman, stated, “Novus is a pioneer in the cannabis insurance sector and this partnership will allow CannaLife to continue to develop and deploy cutting-edge technologies and distinctive strategies to reach more cannabis friendly customers. Our portfolio with a rating of A or better by A.M. Best, who provides credit ratings for the insurance industry, will deliver consumer confidence and participation of cannabis users throughout the United States.”
Novus’ management is confident that as the legalized medical industry moves forward, more insurance companies will seek high-quality partnerships with Novus to continue to add value to their customer base.
Novus Acquisition & Development Corp. (NDEV), through its subsidiary WCIG Insurance, provides health insurance and related insurance solutions within the wellness and medical marijuana industries in states where legal programs exist. Novus has developed its infrastructure within many lines of the insurance business such as, health, property & casualty, life, accident and fixed annuities.
Novus medical cannabis benefits package will work as outside developers and will not cultivate, handle, transport grow, extract, dispense, put up for sale, put on the market, vend, deliver, supply, circulate, or trade cannabis or any substances that violate the United States law or the Controlled Substances Act, nor does it intend to do so in the future and will continue to follow state and federal laws. The statements made about specific products have not been evaluated by the United States Food and Drug Administration (FDA) and are not intended to diagnose, treat, cure or prevent disease. All information provided on these press releases or any information contained on or in any product label or packaging is for informational purposes only and is not intended as a substitute for advice from your physician or other healthcare professional. Once a push notification is completed the transaction is solely between the state-licensed dispensary and the registered patient.
The state laws are in conflict with the federal Controlled Substances Act. The current administration has effectively stated that it is not an efficient use of resources to direct federal law enforcement agencies to prosecute those lawfully abiding by state-designated laws, allowing the use and distribution of medical marijuana. However, there is no guarantee that the current administration, nor any future administration, will not change this policy and decide to enforce the federal laws strongly. Any such change in the federal government’s enforcement of current federal laws could cause significant financial changes to Novus Medical Group. While we do not intend to harvest, distribute or sell cannabis or cannabis related products, we may be harmed by a change in enforcement by federal or state governments.