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On September 26, 2024, California Governor Gavin Newsom signed a bill requiring pet insurance companies to be more transparent about their policies.
This bill aims to help pet owners make informed decisions before purchasing pet insurance. It is unclear whether these new protections will be extended nationwide.
California’s new consumer protections for pet owners
SB 1217, filed by Sen. Steve Glaser, requires pet insurance companies to be more transparent about coverage and costs.
The new law requires pet insurance companies to:
- Disclose if your insurance does not cover pre-existing conditions, genetic conditions, congenital abnormalities or disabilities, or chronic conditions.
- Disclose whether your coverage is limited by waiting periods, deductibles, coinsurance, or policy limits. Waiting periods do not apply to renewed policies.
- We’ll explain whether your coverage will be reduced or cost more based on your claim history, your pet’s age, or your change of location.
- If you need a health exam to get pet insurance, we’ll explain what’s required. If you renew your insurance, a veterinarian exam is not required.
- Clarify the difference between pet insurance and wellness programs. Separate marketing materials are required and wellness programs cannot be promoted as pet insurance. Wellness program payments must be made separately from pet insurance payments and wellness programs cannot overlap with pet insurance coverage.
A second bill was signed that would allow California veterinary schools to develop certification programs to make spay and neuter services free or low-cost.
“Every pet deserves a home and every family is happier with a pet,” Governor Newsom said in a news release. “The increasing number of animals that live in the world is a major challenge.” California is working to both reform the pet insurance industry and support efforts to meet the high demand for accessible spay and neuter services to reduce shelter overcrowding. ”
How will this bill affect pet insurance nationwide?
California is the most populous state in the United States, so any changes to California’s law could spread across the United States. It may be easier for businesses to apply changes to all states than to make changes in a specific state.
Pet insurance has historically been generally unregulated, and state requirements have varied widely. California’s new law could prompt pet insurance companies to make changes that apply nationwide.
It remains to be seen how pet insurance companies will respond.
What owners should do to understand pet insurance
Whether you’re in California or elsewhere in the United States, understanding your insurance is key to determining whether pet insurance is worth it. Before purchasing insurance, understand your coverage, premiums, refund exclusions, and what happens if you need to make a claim.
California’s bill requires companies to be more transparent, but you should always read the fine print and do your due diligence before purchasing pet insurance.
