Legislation proposes important changes to pet insurance
News from Insurance Business America:

The rapidly growing pet industry will face a new set of regulatory requirements if legislation from the California State Legislature moves forward.

Sponsored by California Insurance Commissioner Dave Jones, AB 2056 is said to promote consumer protection by “bringing uniformity to policy language and disclosures, increasing transparency in pet insurance policies.”

Particularly at issue are differing policy definitions of a “pre-existing condition,” something that helps generate the nearly 100 complaints the California Department of Insurance receives related to pet insurance every year.

According to the Department, “pet owners often purchase policies either not knowing that pre-existing conditions are not covered or the policy language is unclear as to what constitutes a pre-existing condition.”

The new legislation would standardize definitions of pre-existing conditions as:

“Preexisting condition” means any condition for which a veterinarian provided medical advice, the pet received treatment for, or the pet displayed signs or symptoms consistent with the stated condition prior to the effective date of a pet insurance policy or during any waiting period.

That protects insurers as well as consumers, says Geoff Margolis, deputy commissioner and special counsel for the Department.

“We wanted to make sure we develo…………… continues on Insurance Business America

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