The Maryland Insurance Administration published a bulletin informing insurers and producers of the new pet insurance law which will become effective on January 1, 2025.
The bill creates a regulatory framework for the sale of pet insurance and applies to all pet insurance policies and contracts that are issued in the state on or after January 1, 2025. The bill requires pet insurers to disclose the following the consumers:
- Policy exclusions, including preexisting conditions
- Policy provisions limiting coverage through a waiting period, deductible, coinsurance, or annual or lifetime policy limit
- The insured’s right to cancel the policy within 10 days
- The basis or formula and benefit schedule the insurer uses to determine claim payments
- Whether the insured’s claim history, age of pet, or change in location would reduce coverage or increase premiums
The bill allows insurers to exclude coverage due to preexisting conditions but that must be disclosed to the consumer. Insurers cannot require a medical examination of the pet when renewing a policy. Pet insurers are prohibited from determining an insured’s eligibility on whether they participate in a separate wellness program. Any wellness program that promises to pay due to the occurrence of a determinable contingency is considered insurance and is subject to Insurance Law.