TRENTON, N.J. – The New Jersey Senate Commerce Committee has approved legislation that would establish a formal regulatory framework for pet insurance, setting standards for policy disclosures, coverage limits, and consumer protections.
The measure, Assembly Bill 1203, also known as the “Pet Insurance Act,” aims to ensure transparency and fairness in how insurers market and sell pet coverage across the state. The bill was reported favorably by the committee on March 24.
Under the proposal, pet insurers would be required to clearly disclose whether policies exclude coverage for preexisting conditions, hereditary disorders, congenital anomalies, or chronic conditions. Policies must also include a standard statement notifying consumers that other exclusions may apply and directing them to the policy’s exclusion section for details.
The bill restricts how companies can deny claims tied to preexisting conditions, placing the burden of proof on insurers to demonstrate that a limitation applies.
It also mandates that insurers and producers clearly distinguish pet insurance policies from pet wellness or preventive care programs to prevent misleading marketing practices.
Additionally, the measure introduces training requirements for agents selling pet insurance and specifies that only licensed insurance producers with an active life, health, personal lines, or property and casualty authority may sell such policies.
Lawmakers said the legislation is intended to protect consumers as the pet insurance market continues to grow, giving pet owners greater clarity about what their policies cover and stronger recourse when claims are denied.