Florida Governor Ron DeSantis has signed legislation creating a regulatory framework for pet insurance oversight, aiming to eliminate deceptive practices and protect consumers. The bill, which passed unanimously in both the House and Senate, will take effect on January 1.
Key Provisions of the Legislation
The new law defines unfair methods of competition and deceptive acts within pet wellness programs offered by pet insurance agents. Prohibited practices include:
- Marketing a wellness program as pet insurance
- Requiring a wellness program to obtain pet insurance
- Duplicating products or coverage in wellness programs that are also available in pet insurance coverage
- Misleading advertising of wellness programs
Disclosure Requirements
The legislation requires pet insurers to disclose certain details to policyholders, including:
- Whether the policy excludes coverage due to chronic conditions, congenital anomalies, hereditary disorders, or preexisting conditions
- Other policy exclusions
- Policy provisions limiting coverage through waiting periods, deductibles, coinsurance, or policy limits
- Whether coverage is reduced due to pet age, claim history, or geographic location
- Whether the underwriting company differs from the brand name used in marketing
Coverage and Waiting Periods
The law allows coverage exclusion based on preexisting conditions with written disclosure to policyholders. Waiting periods for coverage are limited to 30 days for illnesses and orthopedic conditions not resulting from accidents, while waiting periods for accidents are not permitted.
Transparency Requirements
Pet insurers must provide clear information about their claim payment formulas on their websites. When requiring medical examinations before issuing coverage, insurers must clearly disclose examination requirements and potential coverage exclusions due to preexisting conditions.
Consumer Rights
The legislation mandates a 30-day right to return pet insurance policies with a refund issued within 30 days of the return request.
Impact and Analysis
A Senate bill analysis found that the increased transparency will provide consumers with greater information to compare pet insurance policies, potentially reducing out-of-pocket costs for unexpected medical emergencies. The analysis also noted that the bill will provide greater regulatory certainty for insurers.
