New Jersey Introduces the “Pet Insurance Act” to Regulate Pet Insurance Market
Trenton, NJ – New Jersey has introduced the “Pet Insurance Act,” establishing a comprehensive legal framework for the sale of pet insurance within the state. This bill includes several consumer protection measures related to policy renewals, waiting periods, policy limits, conditions, and benefit schedules.
The bill mandates specific disclosures that pet insurers must provide to consumers, including whether the policy excludes coverage due to:
- A preexisting condition;
- A hereditary disorder;
- A congenital anomaly or disorder;
- A chronic condition.
Additionally, if the policy includes other exclusions, it must use the following statement: “Other exclusions may apply. Please refer to the exclusions section of the policy for more information.”
The bill also sets limits on how insurers can deny claims related to preexisting conditions of covered pets, requiring insurers to prove that a preexisting condition limitation applies.
To eliminate consumer confusion, the bill requires insurers and insurance producers to clearly differentiate pet wellness programs from insurance policies.
Finally, the bill includes training requirements for insurance producers to ensure they are adequately prepared to present information to consumers.