SB 1217: Pet insurance.

Existing law generally regulates classes of insurance, including pet insurance. Under existing law, a pet insurance policy marketed, issued, amended, renewed, or delivered to a California resident on or after July 1, 2015, is subject to state regulation of pet insurance. Existing law requires an insurer transacting pet insurance to make specified disclosures to consumers. Existing law defines various terms relating to the regulation of pet insurance.

This bill would require an insurer to disclose if it reduces coverage or increases premiums based on the age of the covered pet or a change in the geographic location of the insured, as well as if it requires a medical examination to effectuate coverage or imposes a waiting period. The bill would authorize the issuance of a pet insurance policy that excludes preexisting conditions or imposes a waiting period, if specified criteria are met. The bill would require coverage to be issued no later than 12:01 a.m. on the 2nd day after receipt of a complete application and valid payment information, except as specified. The bill would set forth requirements for a pet wellness program, as defined, would prohibit the marketing of a wellness program as pet insurance, and would specify when a wellness program is considered a pet insurance policy. The bill would also update existing definitions and define additional terms, including orthopedic, producer, and renewal.