NAIC Passes Pet Insurance Model Act

The National Association of Insurance Commissioners (NAIC) has passed a Pet Insurance Model Act to establish appropriate regulatory standards for the growing pet insurance industry.

“This model law establishes clear rules for the sale of pet insurance and provides important disclosures to pet owners interested in purchasing this product,” said Beth Dwyer, superintendent of insurance for the Rhode Island Department of Business Regulation, in a statement. “Now, it is up to the states to see if they would like to adopt or modify the model law for this regulatory framework to be in effect.”

Key elements of the model include:

Consumer protections: The model codifies several consumer protections related to policy renewals, required disclosures of waiting periods, policy limits, conditions, benefit schedules, etc.

Pre-existing conditions: The model limits how insurers can deny pet insurance claims related to pre-existing conditions of covered pets.

Wellness programs: The model explicitly requires insurers and their producers to clearly differentiate pet wellness programs from insurance policies to help eliminate consumer confusion between insurance policies and non-insurance wellness programs.

Training requirements: The model codifies training for insurance producers to ensure they are appropriately prepared to present information to consumers.