New California law mandates disclosure rules for pet insurance
News from The Seattle Times:

SACRAMENTO, Calif. — California became the first state in the nation this week to add disclosure rules for the mostly unregulated pet-insurance industry.

Gov. Jerry Brown signed the bill — AB2056 — into law Tuesday that requires insurers to clearly explain their policies to pet owners, including annual coverage limits and disqualifying pre-existing conditions. It also requires a clear explanation on limitations involving coinsurance, waiting periods, deductibles and annual or lifetime policy limits. The law takes effect in July 2015.

Rob Jackson, CEO of Bellevue-based Healthy Paws, one of two pet health insurers based in the Seattle area, called the law a “big step forward to legitimize pet health insurance.”

The bill by Democratic Assemblyman Matt Dababneh of Encino responds to consumer complaints about confusing and misleading policies. Pet owners have reported unexpected out-of-pocket veterinarian costs and claim denials.

The legislation also gives policyholders a 30-day trial period to try out their insurance. The state Department of Insurance can fine insurance companies up to $ 10,000 for violations.

Former Gov. Arnold Schwarzenegger vetoed a similar bill in 2010.

Actors and Others for Animals, an animal-welfare nonprofit in Southern California that supported the bill, said it had seen an increase in applications from pet…………… continues on The Seattle Times

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