Working group outlining model pet insurance law
The NAIC standards, which are still in draft form, cover insurer licensing, preexisting conditions and reimbursement regulations.
The Pet Insurance Working Group of the National Association of Insurance Commissioners (NAIC) is busy working on a new model pet health insurance law. The working group is currently developing the draft model and likely will not release the final version to the public until late 2021.
As with any model law, the impact of this legislation will depend on whether and how states adopt the law. It will likely also change how veterinarians discuss pet insurance with clients.
In April 2019, the Pet Insurance Working Group was established by the NAIC’s Property Casualty Committee. The Pet Insurance group was formed initially to review the NAIC White Paper, “A Regulator’s Guide to Pet Insurance,” to consider whether a model law or guideline was necessary to create appropriate regulatory standards for the emerging pet insurance industry. The working group is currently reviewing a draft document of the Pet Insurance Model Act. After the draft is completed, the Property Casualty Insurance Committee will determine if revisions are necessary before a final version is sent to the Executive Committee and Plenary for consideration.
Currently, regulations of pet health insurance vary widely on a state-by-state basis. California law, for example, requires policies to contain clear language on coverage limits, waiting periods, deductibles, and lifetime limits, while other states have no pet health insurance regulations in place at all.
Pet insurance is similar to health insurance for humans and includes exclusions, various levels of coverage, deductibles, and payment limits. Most pet health insurance policies exclude pre-existing conditions and hereditary or congenital conditions, and most don’t cover wellness or preventative items.