California Increases Consumer Protections for Pet Insurance

September 30, 2014

Pet insurers must disclose important information regarding their policies, standardize definitions, and provide consumers with a 30-day “free look” period, under a bill signed into law by California Gov. Jerry Brown on Tuesday.

Brown signed Assembly Bill 2056, which was supported by much of the pet insurance industry and Insurance Commissioner Dave Jones. According to the California Department of Insurance the law is the first of its kind in regard to pet insurance in the nation. AB 2056 will go into effect July 1, 2015.

AB 2056 was authored by Matt Dababneh, D-Encino. Under the new law, pet insurers will be required to disclose baseline information regarding their policies such as reimbursement benefits, pre-existing condition limitations, and a clear explanation of limitations of coverage including coinsurance, waiting periods, deductibles and annual or lifetime policy limits. Consumers will also gain a 30-day “free look” period in which a pet insurance policy can be returned for a full refund.

pets“California consumers will now have greater protection when they purchase pet insurance,” Jones said in a statement. “In the state with the largest number of insured pets, once again California is leading the way by becoming the first state in the nation to enact a law that adds consumer protections to this rapidly growing line of insurance.”

CDI asserts the bill will address the majority of complaints it receives regarding pet insurance. Actors and Others for Animals, who has continuously supported the bill, has also seen an increase in applications from pet owners with pet insurance who need help paying for their sick or injured pets because they have come to find that the policy’s exclusions exceed the benefits, according to the gorup.

According to CDI, the pet insurance industry will reach $750 million by 2015 as Americans spend more than $15 billion each year on veterinary care.

AB 2056 was supported by a number of animal welfare organizations such as the Humane Society of the United States, American Society for the Prevention of Cruelty to Animals, Social Compassion in Legislation, and the Pet Industry Joint Advisory Council, as well as consumer groups including Consumers Union and the Consumer Federation of California.

Topics California

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