Pet Insurance Bill Provides Important Consumer Protection for Rapidly Growing Market

LOS ANGELES, Calif., June 20 — The California Department of Insurance issued the following news release:

Today Insurance Commissioner Dave Jones and Assemblymember Matt Dababneh held a joint press conference at an off-leash dog park to discuss important pet insurance legislation. Within California’s economy the pet insurance market is rapidly growing and expected to reach $750 million by next year. AB 2056 (Dababneh), sponsored by Insurance Commissioner Dave Jones, will add important consumer protections to pet insurance by bringing uniformity to policy language and disclosures increasing transparency in pet insurance policies.

“California has the largest number of insured dogs and cats in the nation,” said Commissioner Jones. “It is essential that consumers purchasing pet insurance understand what they’re getting for their money. When policy terms are more easily understood, consumers are better able to select a product that meets their needs. AB 2056 will help pet owners who want to limit the financial risk associated with the pet’s veterinarian bills, while providing important consumer protections that are currently absent from pet insurance.”

The California Department of Insurance receives nearly 100 complaints regarding pet insurance coverage every year. After investigation, the majority of complaints result in findings for the consumer. One of the most common issues pet insurance consumers face is coverage of pre-existing conditions. Pet owners often purchase policies either not knowing that pre-existing conditions are not covered or the policy language is unclear as to what constitutes a pre-existing condition, which leads to coverage denials by the insurer. AB 2056 will require pet insurers to standardize definitions and disclose important information regarding their policies such as reimbursement benefits and pre-existing condition limitations.

Policies would be required to contain a clear explanation of limitations of coverage including coinsurance, waiting periods, deductibles and annual or lifetime policy limits. The bill adds a 30-day free-look period where consumers could return their policy for a full refund as well as stronger enforcement provisions in case of a violation of any policy provisions.

“AB 2056 is an important first step into protecting consumers participating in this rapidly growing industry,” said Assemblymember Matt Dababneh. “By requiring standard disclosures for all pet insurance policies and including a 30 day free-look period for consumers, this bill allows pet owners to choose the most appropriate pet insurance product to fit their needs, and increases confidence in their purchases.” This year Americans will spend more than $15 billion on veterinary care. The pet insurance industry has more than doubled in size since 2008 and more pet owners are purchasing pet insurance to ensure that they can afford the proper veterinary care for their pets. In Californiaalone, there are more than 200,000 pets insured. If AB 2056 is signed into law, it would be the first consumer protection legislation for pet insurance consumers of its kind in the country.

For original article click here. 

Leave a Reply